Tesla’s disastrous decision to keep all of its bitcoin seems to have paid off in the short term, as the automaker recorded a $64 million profit from BTC trading in 2022. However, this may not be Tesla’s only mistake related to Bitcoin – if Tesla’s losses from bitcoin holdings are any indication, it may have been better off just selling them all off.
Some investors are concerned that Tesla’s investment in bitcoin could lead to some inconsistencies with the automaker’s public image. While the benefits of investing in bitcoin–such as increased liquidity and safety–may be enticing, it is still early days for this technology and companies will need to tread carefully if they want to remain credible with their consumers.
Given that the price of bitcoin tends to fluctuate wildly, some people might think that accepting it as a payment for goods and services is a risky proposition. However, given CEO Elon Musk’s recent statement that Tesla would begin accepting bitcoin in March 2021, the crypto’s price popped up accordingly. Shortly after, though, Musk backpedaled on the decision claiming that mining bitcoin consumes too much energy. This caused the price of bitcoin to tumble somewhat later on. Still, many people see cryptocurrency as an ongoing investment opportunity and so it remains to be seen how this will play out over time.
Despite recent volatility in the value of bitcoin, Tesla remains a believer in the potential of this currency. The company sold nearly 75% of its holdings last year and plans to use the proceeds to buy traditional currency, in part out of anticipation for a future rebound. Whether or not that rebound happens remains to be seen, but Tesla’s faith is unswerving.
While some experts say bitcoin has remained resilient and may experience a comeback, others warn that the cryptomarket is still extremely volatile and could dip further. Still, many people are fascinated by the technology behind cryptocurrencies like bitcoin, and as long as buyers remain interested in these digitalassets, there’s no reason to believe that the market will collapse completely.
Tesla’s decision to disband its press department could indicate that the company is struggling to keep up with the rapidly changing news and media landscape. In recent years, Tesla has faced several high-profile scandals, including reports of fatal vehicle crashes, financial mismanagement, and employee sabotage. With so much negative news