Billionaire Elon Musk is a huge fan of cutting-edge technology and is usually ahead of the curve when it comes to finance, but he's not a bitcoin bull. The co-founder of Tesla Inc. revealed on Twitter that he owns only a tiny fraction of one bitcoin token.
Tesla put $1.5bn into Bitcoin in early 2021, with chief executive Elon Musk saying it would be accepted as payment. It changed course a few weeks later, and Tesla has since sold most of its Bitcoin holdings. It now holds about $184m of Bitcoin.
The largest holder of Bitcoin is believed to be Satoshi Nakamoto, the pseudonymous founder of Bitcoin. Nakamoto is estimated to own approximately 1,000,000 BTC, worth around $27.13 billion.
Last year, as the value of bitcoin began to plunge, Tesla sold 75% of its bitcoin holdings and used the proceeds to buy traditional currency. The automaker today owns about $184 million worth of bitcoin, and may be holding out for a rebound. The crypto market has experienced a dramatic drawdown over the past year.
Elon Musk on SNL. A Twitter account promoting the Shiba Inu cryptocurrency did not get what it was hoping for when it asked Elon Musk how much $Shib he owns. "None," was Musk's one-word response. Then Musk followed up: "Out of curiosity, I acquired some ascii hash strings called 'Bitcoin, Ethereum & Doge'.
Back in July 2021, Tesla CEO Elon Musk confirmed publicly during a conference that he owns a few cryptocurrencies, such as Bitcoin, Ethereum and Dogecoin, but he has repeatedly favoured the latter in interviews and posts on social media.
Elon Musk, CEO of Tesla and SpaceX, business magnate, and one of the richest men in the world, recently announced that he has created a brand-new cryptocurrency. Ratcoin™ went public on Feb. 18, and is already making waves. Musk is no stranger to the world of economics and cryptocurrency.
The maximum number of bitcoins that can ever exist is 21 million, and as of March 2023, over 19 million bitcoins have already been mined. This means that there are only around 2 million bitcoins left to be mined, and once that limit is reached, no more bitcoins will be created.
Through the fourth quarter, the EV leader maintained its Sept. 30 stake in bitcoins -- but their value melted.
Tesla made a $140m (£113.5m) loss on its Bitcoin investments in 2022, according to filings. The electric car maker told the US regulator it lost $204m on Bitcoin overall, though it gained back $64m through trading.
Bitcoin is open source, meaning its design is public. No one person owns or controls Bitcoin, and anyone can participate. While Satoshi continued to control Bitcoin's development, users and developers congregated in Bitcoin forums to contribute code and work on the project, which had become a collaborative effort.
It has no intrinsic value and is not backed by anything. Bitcoin devotees will tell you that, like gold, its value comes from its scarcity—Bitcoin's computer algorithm mandates a fixed cap of 21 million digital coins (nearly 19 million have been created so far). But scarcity by itself can hardly be a source of value.
By selling its Bitcoin, Tesla was able to bolster its cash reserves and lessen the blow from lockdown-affected factories in China.
revealed on Twitter that he owns only a tiny fraction of one bitcoin token. "I literally own zero cryptocurrency, apart from . 25 BTC that a friend sent me many years ago," Musk confessed.
In fact, Musk's favourite, Dogecoin's carbon emissions dipped by 25% in one year. In other words, the meme coin released 1,063 tons of emissions in 2022 as compared to 1.423 tons in 2021. In simpler terms, Dogecoin employs only 0.12 kWh per transaction as compared to Bitcoin's 1,183.58 kWh per transaction.
Tesla Inc. said it has sold 75% of the bitcoin it had purchased, little more than a year after investing in the digital currency. The electric-vehicle maker said the sale added $936 million to its balance sheet in the second quarter.
Due to uncertainty about when the lockdown would lift in Shanghai, Musk said Tesla unloaded 75% of its bitcoin holdings to maximize its cash position.
Bitcoin, the largest cryptocurrency by market cap, is a risky investment with high volatility. It should only be considered if you have a high risk tolerance, are in a strong financial position and can afford to lose any money you invest in it.
Their confidence in Bitcoin is so strong that analysts at Ark Invest released a report claiming that its price could be worth more than $1 million by 2030. But for Bitcoin to get to that level, it would need to increase by more than 4,000% in just seven years.
When all bitcoin have been mined, miner revenue will depend entirely on transaction fees. The price and purchasing power of bitcoin will adjust to the lack of new supply. The scarcity of Bitcoin will make it more attractive to investors and users.
The Bitcoin ecosystem is still developing, making it possible that Bitcoin itself will continue to evolve over the coming decades. But however Bitcoin evolves, no new bitcoins will be released after the 21-million coin limit is reached.
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Satoshi Nakamoto (born 5 April 1975) is the name used by the presumed pseudonymous person or persons who developed bitcoin, authored the bitcoin white paper, and created and deployed bitcoin's original reference implementation. As part of the implementation, Nakamoto also devised the first blockchain database.