Elon Musk, the principal exec of Tesla, just lately introduced his business had purchased US$1.5 billion (virtually A$2 billion) of Bitcoin. The statement resulted in a flurry of excitement as well as a fast rise in rate for the debatable cryptocurrency.
This rate bump was excellent information for Musk in the short-term. At one factor, Tesla’s Bitcoin financial investment had acquired greater than US$1 billion in worth. Yet can possibly the excitement be suffered? I assume there’s a likelihood that over the following year the rate of Bitcoin will certainly go down to its essential worth, which is absolutely nothing.
If Bitcoin were to shed fifty percent its provide worth — which is not not likely, offered its incredibly unstable previous practices — Tesla will certainly shed about A$1 billion. As Elon Musk possesses regarding a 5th of Tesla, he would certainly after that be down A$200 million. On the other hand, I very own no Bitcoin so I will certainly shed absolutely nothing, which implies I will certainly have actually done A$200 million much far better compared to Musk.