Analysts Claim That Tesla Has Seen More Reward From Bitcoin Than Cars
When Tesla announced that it had finalized plans to purchase Bitcoin holdings worth $1.5 billion, it did not come as a shock to anyone in the crypto sector. While most people knew Elon Musk as the richest man in the world at that period, the crypto community regarded him as a force in the market.
Musk has been a very vocal person before the Bitcoin purchase when supporting the meme coin, Dogecoin. Even though most people would have argued that he would have bought Dogecoin instead, the crypto-savvy billionaire chose to follow other investments into the Bitcoin network.
Elon Musk has been a Bitcoin proponent for a long time
Recent research carried out by research firm Wedbush Securities has revealed a new fact that would gladden crypto proponents’ hearts, including Musk. Wedbush pointed out that the company has earned more profits from the investment in the research report than it earned selling cars across 2020. This is understandably correct because Bitcoin has seen several rapid rises after the company announced the investment in the leading digital asset.
The most surprising one was Bitcoins 5.8% surge after the entity announced the large Bitcoin buy. However, this is not far-fetched since Elon Musk has attained a god-like status in the crypto market. Major investors and traders would instead follow in his footsteps, judging by the recent holding of Dogecoin.
The CEO recently took to Twitter to beseech high-value holders known as Whales to sell off some of their Dogecoin holdings because it was getting centralized and was not good for the price of the asset. He even offered to pay them for the assets they decide to sell, even though news of anyone reaching out to him has not reached us. Bitcoin, on its part, has continued in its rise, with the digital asset recently breaking the $57,000 price region.
Bitcoin tops $1 trillion in market cap
Another landmark achievement that Bitcoin saw recently was its market cap, which hit the $1 trillion mark. The digital asset beat several other entities to place 5th in the top 10 companies according to market cap. In their analysis, the company mentioned that compared to the above $700 million profit it made selling cars last year, the company has been able to recoup $1 billion in profits from the Bitcoin investment in January alone.
However, the report was based on the fact that the firm had not touched any of the Bitcoin held during that period. Asides from influencing Dogecoin, Musk has done his part in helping Bitcoin attain greater heights in the market by tweeting about it and adding the word in his bio on the microblogging platform Twitter.
He has also become a defender of the coin as he has had to face off several bad mouths from critics such as Peter Schiff, who was always against the digital asset in favor of Gold. Even though the company sees the investment as a sideshow, they believe that it could impact several other markets through the investment.