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$365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

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Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#71

Post by selectodude »

slg wrote: post #54
notyourwork wrote: post #41

Earlier quoted context omitted.

This looks like a pump and dump scheme in its finest form. Nothing changed over last year in regards to energy consumption. There's no way that Elon or those in Tesla discussing this were not aware of this prior.

How is this a pump and dump? They never dumped. It is certainly stupidity from Musk, but I don't know why you are implying maliciousness when they are still holding Bitcoin and therefore they are equally hurt by this drop in value.

Last information we have is from late April saying that TSLA sold off 10 percent of their bitcoin holdings. Nobody has any idea what their holdings are today.

Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#72

Post by [deleted] »

_Microft wrote: post #53
sakopov wrote: post #31

Very perplexing behavior from Musk, I must say. Bitcoin's energy consumption has been front-and-center for a few years now and even more so when the bull market got hot. How does Musk decide to throw $1.5 billion worth of Tesla's cash into BTC without acknowledging this? I was expecting a little bit more due-diligence from him, but he's been absolutely consumed by crypto markets in general.

My take: this was calculated. Notice an opportunity for easy money and get into Bitcoin under the pretense of selling cars for it, then pull out "temporarily" citing environmental reasons. They are now in a comfortable position to hold onto it for how long they might want to, without getting too many questions why a car maker is speculating with crypto coins. If they might need cash (or have to pretty up the quarterl…

[deleted]

Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#74

Post by [deleted] »

paulpauper wrote: post #46

MSTR down 10% to $500 (60% off the highs) depsite btc only being down 24% from highs. Put options on MSTR plus being long BTC seems like a good micro-strategy. MSTR is overleverged and at risk of defualt if btc falls below $10k. https://greyenlightenment.com/2021/03/16/microstrategys-bad-... MSTR will probably need to sell more debt to cover existing debt and at very unfavorable terms.

[deleted]

Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#75

Post by ique »

slg wrote: post #54
notyourwork wrote: post #41

Earlier quoted context omitted.

This looks like a pump and dump scheme in its finest form. Nothing changed over last year in regards to energy consumption. There's no way that Elon or those in Tesla discussing this were not aware of this prior.

How is this a pump and dump? They never dumped. It is certainly stupidity from Musk, but I don't know why you are implying maliciousness when they are still holding Bitcoin and therefore they are equally hurt by this drop in value.

They sold 10%, so they expect to be in for a few more rounds. Pump and dumpers rarely just aim for one single big cycle, you go in waves for max profit.

Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#76

Post by gradys »

whitepaint wrote: post #64
gradys wrote: post #16

Earlier quoted context omitted.

You'd think an intrinsically deflationary asset like Bitcoin would move differently in the face of USD inflation. Any explanation for why this might be?

That is just a ridiculous statement. If you want a hedge against inflation you'd buy something like shares of McDonald's (people will keep eating burgers), gold and other commodities, things that people need. No one actually needs Bitcoin. If Bitcoin disappeared right now, who would lose besides the people who hold Bitcoin? No one. If you want to circumvent the banks there are other ways to do so and very easily so.…

What is ridiculous exactly? That it's deflationary? Or the intuition that it should rise in the face of USD inflation (all else equal)?

Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#77

Post by dragoncowman »

I don't really buy the pump and dump take here. Even if it had been an intentional pump, no reason to trigger a selloff.

Some Theses: - Elon is a quick decision maker, he could have genuinely been persuaded about energy usage post-hoc. The energy bit does run somewhat contrary to Tesla's core mission. - In line with this, tesla may be about to form a partnership or make a move with another crypto platform, both because the other platforms have more technical advantages and because they are more energy efficient. Maybe they will even launch their own coin/project - Musk decided it was no longer worth the headache. His Bitcoin communications may have brought a lot of behind the scenes regulatory or fed scrutiny that we are not aware of - Some other new information (possibly natsec related) that caused him to change his view on BTC

Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#78

Post by kordlessagain »

colechristensen wrote: post #56
lhorie wrote: post #47

Earlier quoted context omitted.

DOGE's drop over the weekend also more or less coincided w/ Musk's appearance on SNL (where he called it a "hustle"). If you recall, the previous rise in BTC also followed closely on the tails of the news that Tesla was getting into BTC. Kinda insane that a single guy can make almost the entirety of the crypto market swing 10-20% every time they mention crypto.

It’s almost like crypto has very little actual value outside of speculation...

There is yet a killer use case, but AI is coming so just hang on a hot minute. Well be above 100k in six months. Machine learning APIs and Lighting payments are a match made in heaven.

Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#79

Post by selectodude »

BitwiseFool wrote: post #68
lvs wrote: post #21

Earlier quoted context omitted.

Because it's backed by the full faith and credit of absolute void.

Are you talking about the Dollar?

Gotta hold dollars to pay US taxes. Don't need to hold Bitcoin to do anything at all.

Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#80

Post by novaRom »

phire wrote: post #66
slg wrote: post #54

Earlier quoted context omitted.

How is this a pump and dump? They never dumped. It is certainly stupidity from Musk, but I don't know why you are implying maliciousness when they are still holding Bitcoin and therefore they are equally hurt by this drop in value.

Tesla might not have dumped. But I'd be very interested to see Musk's personal trading accounts, and the trading accounts of his close associates.

This is why SEC department exists: sec.gov

Musk should be investigated, this is not the first time his actions lead to massive market perturbations.

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