Speaking of Musk's name, it can be said that everyone knows it. Not only did he make Tesla bigger and stronger by his own efforts and become an important part of the new energy vehicle field, but he also used practical actions to illustrate his big goals and big picture. In Musk's eyes, the earth is nothing, not enough to accommodate his ambitions and dreams. Not only did he boast that he would immigrate to Mars, but he also personally launched rockets and satellites and studied the mysterious "Starlink Project".
Of course, in addition to his lofty ambition of "breaking out of the earth and heading for the universe", Musk also set his sights on the field of cryptocurrency. He was optimistic about the future of the crypto world and spent a huge amount of money to buy a series of currencies such as Bitcoin and Dogecoin, which greatly added fuel to the prosperity of the cryptocurrency world. But this soon became a double-edged sword, and the cryptocurrency world was also shaken by Musk's pessimistic remarks and selling actions. For the entire cryptocurrency world, Musk's influence and presence are quite strong.
So today, let’s focus our attention on this ruthless man and see how Musk, by his own efforts, has stirred up a bloody storm in the cryptocurrency circle.
The genius Musk: With just one announcement, Bitcoin was directly brought to a high of $47,000.
On a Monday in February 2021, Tesla officially announced that it would begin accepting Bitcoin as a form of payment. At the same time, Tesla stated that it had invested a total of $1.5 billion in Bitcoin and might acquire and hold digital assets from time to time or for a long time.
As soon as the news came out, Bitcoin rose sharply, quickly climbing to the $40,000 mark, and then the momentum continued, with the largest intraday increase exceeding $6,000 and a 24-hour increase of more than 15%, reaching a high of $47,000. At that time, the market value of Bitcoin exceeded $871.7 billion, directly surpassing Tesla's market value of nearly $820 billion and Facebook's market value of nearly $760 billion.
This is not the first time that Musk has driven up the price of Bitcoin on his own.
As early as 2019, Musk tweeted that "I'm late and should have bought Bitcoin 8 years ago", supporting the development of Bitcoin. At the end of 2020, Musk began to take action. He asked Michael Saylor, an important promoter of digital currency, on Twitter about the possibility of converting large transactions on Tesla's balance sheet into Bitcoin. On January 19, 2021, Musk briefly changed his Twitter profile to "bitcoin", seemingly hinting to the outside world that he was determined to invest in Bitcoin. This move directly led to a more than 14% increase in the price of Bitcoin in half an hour. In February 2021, Tesla officially announced the above-mentioned content.
According to media reports at the time, Tesla purchased 42,800 bitcoins at a cost of about $35,000 per bitcoin. After Tesla announced its bitcoin holdings in February, Tesla's floating profit from buying bitcoins exceeded 71%, with a floating profit of more than $1.069 billion. Musk and Tesla made a fortune.
Interestingly, Tesla's investment income in Bitcoin has far exceeded the total profit of its sales in 2020. It was also in this year that Tesla achieved full-year profitability for the first time, with a net profit attributable to ordinary shareholders of US$721 million under US Generally Accepted Accounting Principles (GAAP). Ironically, looking back on the past 10 years, Tesla has worked hard in the field of research and development and paid a lot of research and development funds, but in return it has achieved the pessimistic result of "a sales loss of US$5.66 billion". It seems that after 10 years of hard work in the real industry, it is not as good as an investment in Bitcoin.
Musk’s series of investments directly triggered the carnival and climax in the cryptocurrency circle.
Musk, who "governs currency through Twitter", makes you understand what it means to turn your hand to make clouds and turn your hand to make rain
Musk once said in an interview show, "I can change the market just by moving my mouth."
The boss's understanding of himself is indeed quite accurate. Musk doesn't even need to care too much about public relations or spend money on marketing events, because he himself is a living sign. In the matter of sparing no effort to promote cryptocurrency, Twitter has become Musk's most effective tool.
After the documents showing Tesla's purchase of Bitcoin were released, Musk's show on Twitter officially kicked off.
On March 24 of that year, Musk announced on Twitter that Tesla cars could be purchased with Bitcoin, which greatly increased people's confidence in cryptocurrencies, and Bitcoin and other cryptocurrencies subsequently ushered in a wave of crazy growth. By April 14, Bitcoin once hit a record high of $64,800 per coin.
On May 13, Musk announced on Twitter that Tesla would stop accepting Bitcoin as a payment method. As soon as the news came out, the cryptocurrency market immediately staged a bloody storm. Bitcoin fell continuously during the session, with the price falling by more than $10,000, and the 24-hour drop was close to 15%. Other cryptocurrencies were no exception: Ethereum fell by more than 10% during the session, Ripple fell by more than 17%, Shiba Inu fell by nearly 40% during the session, and Dogecoin fell by nearly 17%. More than 300,000 people in the cryptocurrency market were liquidated within 24 hours, and the amount of liquidation was close to 24 billion yuan.
It has to be said that Musk's influence is truly astonishing. Just by sitting in front of the screen and typing on the keyboard, expressing his personal opinions and company strategies, he can cause a major earthquake in the entire market.
However, such behavior will sooner or later be criticized and blamed. David Portnoy, a famous American stock trader and founder of the sports blog Barstool Sports, once released a video to denounce Musk's behavior. He said that Musk just wanted to put Bitcoin on Tesla's spreadsheets and balance sheets so that Tesla could show profits at the end of the quarter. In addition, he also denounced Musk's behavior for manipulating the cryptocurrency market, "Elon, you have a responsibility. You say you want to buy something one second, and you don't buy it the next second. This is playing with people's future and destiny."
David Portnoy told the truth. Despite this, Musk did not pay a price for his "Twitter-governing currency". As an investor, if you want to buy and sell according to Musk's views, you need to be prepared to bear your own profits and losses. If you make money, everyone is happy. If you lose money, you take it all. This is the rule of the market.
Musk, who is crazy about selling goods: He once called for Dogecoin crazily
Another currency that Musk made popular in the crypto market is Dogecoin.
It’s still the same old recipe, same old taste. Musk retweeted a Dogecoin video on Twitter, adding a tweet “D is for Dogecoin”, which directly pushed Dogecoin to 8 cents, a record high. The market value of Dogecoin once reached $10 billion, making it the 8th largest cryptocurrency.
Let's enjoy the fancy performance of Musk, the crazy promoter, when he promoted Dogecoin on Twitter:
Musk just released the word "Dogecoin", and Dogecoin soared 50% on the same day;
Musk launched a vote on Twitter about the future currency of the Earth. In this vote of more than 560,000 votes, more than 70% of the votes chose Dogecoin;
Musk tweeted a picture of Dogecoin landing on an alien planet, with the caption: "See the picture and understand." On the same day, the price of Dogecoin soared by nearly 20%;
Musk tweeted that he would use SpaceX to bring a Dogecoin to the moon. As soon as the news came out, Dogecoin soared, up 15% on the day;
Musk tweeted that Dogecoin barks at the moon and attached relevant pictures. Dogecoin immediately soared, rising 50% that day;
The results of a poll initiated by Musk on Twitter showed that 78.2% of users supported Tesla accepting payment in Dogecoin, and Dogecoin rose again.
In the process of Musk making Dogecoin popular, we once again witnessed the amazing ability of the big man to bring goods. In half a year, the value of Dogecoin soared 260 times, and the Shiba Inu coin derived from it also increased by tens of thousands of times in just 30 days, and increased by 100,000 times in 3 months. Another altcoin CSPR also increased 2,213 times overnight because of Musk's "support from Twitter".
The madness of the cryptocurrency market is staggering; Musk's ability to bring goods is impressive
Once upon a time, Musk became the undisputed weathervane of the cryptocurrency circle. He could make the price of the cryptocurrency circle take off quickly; Dogecoin went from trash to hot; Shiba Inucoin rose 100,000 times in 3 months; CSPR rose 2,213 times in one night. At the same time, he could also plunge the cryptocurrency circle into a bloody storm, Tesla suspended the use of Bitcoin transactions; 300,000 people in the cryptocurrency market were liquidated...
All of this came quickly and went away quickly; all of this originated from a seemingly casual remark from Musk.
Many industry insiders also sneered at Musk's behavior of "manipulating the cryptocurrency circle on his own". Even Jeremy Grantham, who has successfully predicted two market crashes, said, "I believe that Dogecoin investors will eventually lose everything, but they cannot change their crazy behavior and attitude. Investing in bubble assets is not an intellectual problem, but a psychological problem." Buffett refused to answer any questions about Bitcoin, saying that he did not want to make everyone unhappy. Munger next to him said bluntly, "I hate the success of Bitcoin. I don't like this virtual currency kidnapping our existing monetary system."
Of course, we cannot blame Musk for any of his "selling" and "taking sides" in the cryptocurrency circle. After all, human nature is to seek profit and avoid harm, especially as a businessman. The only thing we can do is to have a clear understanding and not blindly follow any random waves in the market. As the saying goes, there must be something wrong when things are abnormal. Behind those irrational rises, there must be hidden crises and risks. Please be cautious.
