Elon Musk, Bitcoin & Tesla
Tesla Invests BIG in Bitcoin, and What it Means for You
Tesla is the most recent company to hop on the Bitcoin train. Which other companies have gotten involved and how can you get in on the action?
February 8, 2021
In this article:
- Is Bitcoin too dangerous?
- How did Tesla enter the market?
- Which other companies have invested in Bitcoin?
- How can you get in on the action?
Dangers of Bitcoin
Over the years, Bitcoin has been a volatile investment for a number of reasons.
The price of the token was up to $25000 CAD in late 2017, then plummeted down to $4000 CAD in 2018, and now sits at a record high $58000 CAD.
In addition to the volatility in the markets, there have been a number of Bitcoin scams over the years, with Guelph becoming a bit of a hotspot. There were 3 reported scams in November, 1 in January, and another just a few days ago.
The most recent scam involved an elderly lady who was contacted by someone pretending to be a police officer, informing her that her bank account was in danger of being frozen. She was instructed to withdraw all her money and make a Bitcoin transaction to keep it safe. Obviously, it was not safe.
The last issue people have been encountering is getting locked out of their cryptocurrency accounts. Some of these people could be millionaires if they could just remember their damn password.
Tesla enters the market
Even with all the risks, of course Elon Musk couldn’t resist the pull of the token. Tesla is the newest investor in Bitcoin, after taking a $1.5 billion USD stake a few days ago.
This prompted prices to jump over $44000 USD per token for the first time ever.
Tesla also announced that it would be accepting tokens as a form of payment from now on. This is an interesting strategy, as the markets are still volatile. But they are likely doubling down on the assumption that prices will continue to rise, and attempting to gain as many tokens as they can.
Other investors
Tesla is not the first company to invest in Bitcoin. Below are a few of the other players.
Silvergate Capital is a bank that focuses on digital currencies. They currently hold $5 billion USD in tokens, with most of their holdings in bitcoin. Their value has been fueled by the recent surge.
MOGO, a Canadian financial technology company, provides cryptocurrency investment opportunities. They have invested $1.5 million USD in Bitcoin since December of 2020.
Microstrategy is a business intelligence company that bought $250 million USD in Bitcoin in August of 2020. They then proceeded to buy more as the value rose, and their holding total $3.1 billion USD as of February 8th.
Square’s founder and CEO Jack Dorsey has always been a fan of Bitcoin, and now it has paid off. Their holdings total around $1.7 billion USD.
Lastly, Galaxy Holdings is an investment company that has seen their Bitcoin holdings increase in value from $176 million USD to $718 million USD.
Your turn
You may be wondering if it’s time to get in on the action. It may be the right time to do so.
There is certainly increased demand in Bitcoin right now, which, you guessed it, will surely drive up the price. But not so fast.
Predictions for Bitcoin’s long-term price range as wide as $400,000 USD on the top end to absolute zero on the bottom end.
But with a fixed supply of 21 million coins, and surely some bigger companies looking to sneak their way into the market, especially after the investment by Tesla, it might be hard for smaller investors to buy the token. The price tag sits at $58000 USD at the time of writing, where will it be in a couple weeks or months?
Thankfully, there are other ways to invest in Bitcoin. You could simply invest in the companies with large Bitcoin holdings, like the ones listed above.
You could also try investing in a different token, like Ethereum, which currently sits at $2200 CAD, or every memer’s favourite, Dogecoin, which still sits under $0.09 USD.
If not, maybe you should keep your eyes glued to r/WallStreetBets and try to catch a ride on the next GameStonk.
-by Arlen Dancziger
Bitcoin scams
https://globalnews.ca/news/7627439/another-guelph-bitcoin-scam/
Public companies w/ Bitcoin
https://finance.yahoo.com/news/7-public-companies-with-exposure-to-bitcoin-154201525.html
Tesla’s Bitcoin investment
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Who Is Matt McKeever?
Matt McKeever is a CPA, CA and Real Estate Entrepreneur in London, Ontario. On his YouTube Channel with over 70,000 subscribers and 4,000,000 views Matt discusses a variety of real estate and personal finance strategies and tactics. Including: How to BRRRR Real Estate, The Importance of Investing for Cash Flow, How to Reach Financial Independence Retire Early, Safe Withdrawal Rates, Frugality and Reducing Personal Consumption & Embracing Minimalism.
Matt began investing in real estate at age 25 by purchasing a student rental near Fanshawe College