Science

How did bitcoin ruin my life?

Here are the milestones of the Tesla-Bitcoin romance:

  • Tesla is the first global company to accept bitcoin
  • Tesla buys $1.5 billion of bitcoin in February 2021.
  • Tesla no longer accepts bitcoin due to bitcoin’s carbon footprint
  • Tesla sells 75% of its Bitcoin holdings

Should we see the end of cryptocurrencies at Tesla? of course not.

Need for money caused by China and Covid

In its note to shareholders, the company explains that it sold its bitcoin due to the uncertainty surrounding the Shanghai shutdown and the need for cash to deal with it. They clarify that they have nothing against bitcoin and are ready to buy more in the future.

Here are the translated language elements:

“It should be mentioned that the reason we sold most of our bitcoin holdings was because we weren’t sure when China’s COVID restrictions would ease. Therefore, it was important for us to maximize our cash position given the uncertainty of COVID restrictions in China. We are fully open to increasing our bitcoin holdings in the future. Therefore, this should not be seen as a condemnation of bitcoin. We were just concerned about the overall liquidity of the business given the COVID shutdown in China. And we haven’t sold any of our Dogecoins.”

Ultimately, this is a car company, not a bitcoin company. Bitcoins will always be relegated to the background.

Too many bitcoins left?

For some, this remaining investment represents a significant risk, while for others it is proof of the original logic and remaining confidence in the asset.

However, the company’s objectives are far away, so cryptocurrencies are not at all what the company really thinks about. Current Challenges: Expanding production and accelerating the adoption of sustainable energy.

And answer you. No, Bitcoin did not ruin Tesla’s life as the company made a $64 million profit from the operation.

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