The conventional media has expressed mixed emotions about Elon Musk and Tesla’s move into the world of crypto – announcing yesterday that it purchased bitcoin (BTC) worth USD 1.5bn and hinting the carmaker may be set to start accepting crypto pay.
In a damning assessment, Guardian financial columnist Nils Pratley bristled at the idea of Telsa and Musk foraying into crypto, suggesting the latter should “leave punting on bitcoin to the devotees.” “Tesla should stick to what it’s good at,” he wrote, “and that isn’t bitcoin.”
Pratley added,
“Accounting rules were created before cryptocurrencies were invented. The bean counters don’t want to be blamed if companies get their fingers burned. Still, with interest rates at zero, I doubt Tesla will be the last tech company to try to earn a better return on its cash holdings.”
One of the more underrated issues with bitcoin. It’s accounted for as an intangible. It can be marked down but not… https://t.co/O7Yka61rg6
— nic carter (@nic__carter)
However, Bryant added that companies that buy BTC are “taking a massive financial risk,” and warned that “the volatility of Tesla’s earnings could increase even more if customers start paying for their cars in bitcoin, as Musk will soon allow, and the company elects not to convert it immediately into USD.”
Elsewhere, the prominent investor and Tesla shareholder Ron Baron told CNBC that he was “not surprised” by the automaker’s BTC move, stating,
“This is Tesla and Musk diving into the deep end of the pool on crypto and it’s something that’s been rumored for a while, and ultimately now this is really them putting substance behind his view. I think it’s something [Wall Street] will have a differing view of, but ultimately […] this is definitely going to be viewed as a positive for the stock.”
Tesla’s stock price yesterday:
___
Learn more:
– 1,400+ Firms Flock To Learn About Bitcoin, But ‘There Is No Playbook’
– Elon Musk Deconstructs Money, Prompting Bitcoiners to Ponder the Meaning
– Bridgewater’s Ray Dalio Sends Stronger Bitcoin Signal
– Corporate Treasuries Caught Between an Inflation Rock and Bitcoin
– MicroStrategy CEO On Buying Bitcoin While Trillions ‘Melting’ In Treasuries
– Bitcoin Snowball Is Expected To Hit More Institutions in 2021
– Bitcoin Wheel Cannot Be Stopped
– Morgan Stanley Exec Says Bitcoin is Coming for the US Dollar
– Sovereigns Will ‘For Sure’ Fight Against Private Crypto – Paul Tudor Jones
