Elon Musk’s Electric car manufacturing company Tesla selling Bitcoin stock and collecting fiat currency reserve.
- BTC and other cryptos are volatile and dosen’t offer financial security.
- Stable currency has more potential.
- Centralized system will be more applicable in upcoming future with decentralized finance.
Why Tesla Selling Bitcoin Stocks
Tesla is one of the biggest electric car manufacturing company. It accept Bitcoin Payment for selling cars. Tesla has a very large Bitcoin stock, which was collected from different buyers and other sources like mining and trading.
Suddenly Elon Musk announce that Tesla is selling off their Bitcoin stock. Main reason behind this is crypto volatility. The price of crypto currency suddenly increases very much and then falls very low, this is causing a lot of damage to the merchant.
Cryptocurrency bought at high price is currently down 70% from its actual price. This is why a big company like Tesla is emptying its bitcoin stock and collecting fiat currency instead.
Taking fiat currency will not reduce the actual value of the car and will not cause any loss to the company.
What is Elon Musk Stand On Bitcoin Payment
Elon Musk is considered the king of cryptocurrency. He has the power to shake the entire market with his one tweet. In the last few months, he had refused to take bitcoin as payment for his company, even then the crypto market had collapsed.
At this time, the price of bitcoin is going down a lot and considering the time when the company sold its vehicles at a high price, the company is incurring a lot of loss.
Buying fiat currency by selling bitcoin means securing your capital.
Some people here are also believing that Elon Musk wants to further down the crypto market. So that bitcoin can be bought at a low price and a good profit can be made in the coming time.
Impact on Crypto Market
Tesla owner Elon Musk, what a celebrity who can shake the crypto market with just his fingers. He pumps DogeCoin from cents to dollars. In the same way they pump many other meme tokens.
Actually, Manupuleting memes token is very easy because of their small market cap.
If people will think that Elon Musk is also selling his bitcoin, then the price of bitcoin will become very low. And this will be a new golden chance to buy Bitcoin again.
And bulk buying with create monopoly in whole crypto market. So, this be a big reason for Tesla Selling Bitcoin Stock.
Preparation For Future
If future price will become very low, then how the business will survive in future. So, Tesla Selling Bitcoin Stock and collecting funds to maintain some accounts. Tesla accept fiat along with Bitcoin, BTC price will not impact company financial situation.
But somewhere it may affect the profitability. So company Tesla Selling Bitcoin Stock and making some fiat collection to minimise losses.