Elon Musk and Tesla Back Out of Bitcoin


Estimated reading time: 3 minutes

Back in February 2021, Musk stated that Tesla had bought $1.5 billion worth of Bitcoin and announce the plan to accept the cryptocurrency for purchases of their cars. Which led to a significant increase to the crypto and Tesla stock at the time. Bitcoin still remains over 400% higher than it was 12 months ago but it faces a risky future. With Tesla and Musk being the frontrunners on this crypto charge, they have essentially retreated.

Pollution or greed

It all seems rather sudden and out of the blue. Why would Elon Musk drop Bitcoin so quickly after he had hyped it up so much? He says pollution but it’s definitely greed.

It has never been a secret that cryptocurrencies and Bitcoin in general are a terrible polluter to the planet. Even though Tesla’s mission is to reduce pollution, they publicly supported something that went so against their mission statement. No one really batted an eye however. It seemed almost on-brand for Musk. Just controversial enough to get the mainstream media’s attention and just techy enough to relate to the industry he is in.

Elon Musk and cryptos are a match made in heaven

Everything was going great for both Musk and cryptos. Dogecoin even got in on the fun as Musk proclaimed himself the Doge-Father. That also benefitted from some publicity that Musk gave the cryptocurrency. Although he has not denounced Dogecoin, why the sudden change of thought on crypto?

Money. He never cared about cryptocurrencies. Elon Musk cared about manipulating the market in his favor. Whether that is right or wrong is beside me. I mean people made a lot of money on this ride and many will be set to lose a lot of money as well. I know that a lot of you won’t agree. As we have seen that Elon Musk has a rather rabid fan-base, it’s okay to be critical on people.

Musk claims that Tesla will hold their Bitcoin

If Musk was actually a believer in cryptocurrencies, he would’ve announced that on a much larger scale before he bought $1.5 billion of it. And there is no way in hell that Musk didn’t know about the pollution that mining causes up until last week. All these plays that Musk makes should be short-term quick plays. Elon Musk doesn’t seem to care too much about lessoning pollution, he’s making electric cars because there is a shortage compared to the amount of people that want one.

He’s going to space because NASA stopped pushing and no corporations seem to be interested in it. Musk does always seem to be ahead of the curve, but sometimes he creates that curve for himself. He got into electric cars knowing that there wouldn’t be competition. He got into space knowing that NASA was faltering and no one though space could return an investment. Musk endorsed cryptocurrencies knowing what his influence was worth and seems to have profited big. While he claims to still be holding the $1.5 billion that Tesla owns, Musk could have bought some himself.

Market manipulation is cool and all until you’re on the losing side

Whether you like him or you don’t he knows how to manipulate the market in his favorite to an extent. Tesla looks to be slumping after news of Tesla ditching Bitcoin but he’ll think of something to get it back up. He’ll announce something out of the box that will drive hype and price. Seems to be a more predictable pattern time and time again. What do you think his next move is?

Related Posts

Leave a Reply