Bitcoin’S New Record Has Raised Concerns About A Bubble Driven By Elon Musk
2021-02-09 | by CusiGO
A week ago, a rocket from Elon Musk Aerospace SpaceX exploded when it landed after a test flight. “We have another wonderful flight. We just need to do a little bit of work on landing, “a spokesman said. This sentence perfectly illustrates the present moment of bitcoin: perfect flight, landing full of uncertainty. On Tuesday, as electric car maker Tesla decided to invest 1.25 billion euros and accept bitcoin payments to buy its cars “in the near future,” cryptography continued to climb the sky. Its price has exceeded 48000 US dollars (39600 Euro), a record high, with an appreciation of more than 300% within one year.
After Tesla decided to allow the use of assets considered “highly speculative” by the European Central Bank, calls for regulation of cryptocurrency transactions came again. Former vice president Vitor Constancio is one of the key regulators in recent years, and he has been one of the most outspoken in condemning the passivity of bitcoin’s runaway prosperity. “The authorities tolerate that the public continues to be cheated by technology enthusiasts who don’t know what the money is. As Keynes proved, the main function of money is to become a stable unit of account, defined and managed by the state, and to create liquidity. Bitcoin is just a series of zeros and ones in the computer network. It has no basic value because it will never become a currency, “he criticized on social network twitter.
This information platform is the first choice of Elon Musk, the world’s richest man, who will provide more than 46 million followers with clues about future investment. If Donald Trump is able to launch a trade war on twitter, musk will not lag behind: in recent weeks, he has doubled the offer of dogecoin, a password visa whose icon is a popular dog model, It gives gametop wings, shares a link to the reddit forum, which aims to artificially raise prices to hurt bearish funds, and explodes bitcoin with just seven letters in its social network biography. Last week, he announced a temporary exit from twitter without further explanation, which surprised his followers. Rest is not like that. Two days later, he returned to the frenzied pace of activity, sharing his company’s space rocket news, memes and investment proposals, which are short messages in the tone of prank.
His game with the market was praised by millions of people, who praised him as a visionary modern King Midas, an unrestricted modern King Midas, and he didn’t mind smoking marijuana and drinking whisky on the radio. Can surpass Jeff Bezos himself, ascend the throne of global wealth, obsessed with changing the world. “I love video games very much, but even if I create great games, what impact will it have on the world? This is Ashley Vance’s biography of Mustang.
Constancio quit the job of the European Central Bank’s second biggest man, but he was so concerned about current events that he even hinted at possible manipulation. Tesla didn’t say when he would buy bitcoin, and musk spent some time on twitter in December supporting cryptocurrency. Do you evaluate the value of your company’s investment after purchase? Tesla said he would use some of the remaining cash to buy bitcoin, thereby diversifying his portfolio while maximizing capital. The former Portuguese banker questioned the operator: “no company can manage a budget or make financial planning based on a department that could change so much,” he said.
MicroStrategy, a software company, is one of them. In August, he started buying bitcoin in cash, and now, after Tesla announced the earthquake, he has more than $3 billion (2.4 billion euros) on cryptodivisia, almost three times his investment. However, high volatility makes analysts skeptical that large companies may enter Tesla on a large scale.
The company’s bet on bitcoin linked the two assets suspiciously. The automaker’s market value is more than $800 billion (661 billion euros), which makes it more valuable than the other nine largest U.N. auto companies in December, even though their sales are far lower. Tesla’s earnings per share (the number of times earnings are included in the stock price) exceed 1000 shares, while Apple’s earnings per share is 37 shares, and the average earnings per share of standard & Poor’s index companies is 23 shares. This means that for some overestimated analysts, Tesla will have to double its sales to justify the price. “Bitcoin is Tesla without a car,” says a proverb circulating in the market.
Javier Molina, a Spanish spokesman for eToro, believes that high optimism about Tesla’s move could push the price of bitcoin up to $50000 (41000 euros). Some institutional investors have joined the wave in recent months, but Constancio sees only smoke in places where some believe value reserves are backed by a limited amount of bitcoin. “The value of speculative assets depends entirely on belief. Investors believe that due to certain risks, there will be more or less buyers in the future, and they will buy and sell as expected. ”
In the maelstrom, some small investors are trying to profit from the boom, despite the risk of recurrence. When one of them is asked where to start in the world of cryptoworms, the advice of a more sophisticated person heralds the age of the market. “Everything is crazy, buy bitcoin, follow Elon Musk’s Twitter account.”