Elon musk gambles with bitcoin – and attacks the financial world

Elon Musk is doing it again. After the tech pioneer and multi-billionaire's simple mention on his Twitter profile at the end of January drove up the price of the Digital currency Bitcoin massively in the height, he is now setting up for the next prank: His electric car company Tesla is investing $1.5 billion (1.24 billion euros) in the cryptocurrency. And in the future, car buyers will also be able to pay for their new cars with Bitcoins.

With this, Musk has possibly "opened a new chapter in the history of digital currencies," analyzes cryptocurrency expert Timo Emden of Emden Research in his blog. That's because, until now, bitcoins had been used except as Speculation object little to do. Only the online payment service Paypal had announced last October that users could also use the digital currency in the future. That made people sit up and take notice, but action has not followed so far.

Now, however, Tesla's bitcoin entry could prove to be a Accolade For the digital currency to prove itself and have a signaling effect for other companies. "That in the future, more companies will invest in Bitcoin and Co. invest, is obvious," Emden concludes.

Bitcoin is the most important of the 8400 digital currencies

So far, bitcoin, the most important of the 8400 or so digital currencies with a 60 percent market share, has been coveted mainly in the shadow world except by speculators. Because they allow anonymous payments, bitcoins are used for dubious or clearly criminal business on the darknet, the invisible part of the Internet, among other places.

Now Monday's Tesla announcement leaves bitcoin always new records climb. To the new record of 44.899 dollars on Monday followed already Tuesday morning with 48.216 dollars another high.

With his words, Tesla founder Elon Musk not only strengthens the cyber currency. Around the world, investors are hanging on the lips of the South African-born tech guru who owes his fortune to the rise of payment service Paypal and eventually made it to the top of the world's richest people with electric cars, space rockets and solar technology. With an estimated 188.5 billion dollars it is in a neck-and-neck race with Amazon founder Jeff Bezos for the title of the richest person.

The 49-year-old Musk makes no secret of the fact that he feels contempt for the mechanisms of the financial world above all else. Time and again, investors make billion-dollar bets on the demise of his most important company, Tesla. When it recently entered the stock market war for Gamestop turns on, the stock of the struggling U.S. video game retail chain continues to soar.

Dogecoin rises to record high after Musk mention

So is Musk just mouthing other company names. A brief mention of the trading platform Etsy Sends their share price soaring by double digits at the end of January. Also the fun currency Dogecoin Sends Musk to a record high after a mention a few days ago.

His Twitter actions have also already earned Musk some trouble. In August 2018, he fantasizes about taking Tesla off the stock market. That swirls the stock market massively. The U.S. Securities and Exchange Commission Demands Musk step down as Tesla supervisory board chairman and bans him from making such statements on online networks.

The bitcoin, meanwhile, Tesla will accept "initially on a limited basis," the manufacturer limits in a stock exchange announcement. The background is probably also the rapid roller coaster ride of the price of the digital currency. Started at virtually zero in 2009, investors pushed the price above 20 for the first time by the end of 2017.000 dollars. Then the bubble bursts, and the cyber currency plummets to $3,000. The next high will be slowed down by the emerging Corona crisis in March 2020. Bitcoin has been chasing records again since falling back to $5,000.

Cybercurrencies have no real equivalent value

Experts do not see the recent share price rally as a sustainable development. Rather, he says, this is a result of ultra-low interest rates and a glut of cheap central bank money: Investors hope to make big profits on highly volatile digital currencies.

Expert Emden points to another risk: regulation of digital currencies, so far unchecked by government, could give investors "cold feet". More and more countries are planning digital versions of their own currencies, including a digital euro is in preparation. This would be under central bank supervision and is linked to the value of real money.

For this reason, financial experts such as those at the Verbraucherzentrale Bremen warn inexperienced investors against a Bitcoin investment. They possess no value per se, he says, and no one guarantees it. Those who buy Bitcoins are betting on a purely speculative development.

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