Business & Investment

Tesla Revenue: What Bitcoin Sales Say For The Future of Cryptocurrencies

this week, Tesla Motors (NASDAQ: TSLA), Elon Musk’s electric vehicle company reported revenue for the first quarter of 2021. While many investors were mostly focused on the company’s business, it’s worth noting that they sold 10% of Tesla’s Bitcoin. Elon Musk has long been a strong supporter of cryptocurrencies, and many were surprised to see it.

Tesla bought Bitcoin just a few months ago. So the fact that it had already sold some of its positions was alarming to many in the cryptocurrency industry.

However, Elon Musk quickly revealed that the main reason Tesla sold just 10% of its position was to prove Bitcoin’s liquidity. Musk was essentially trying to show that Bitcoin is a cash-equivalent asset on Tesla’s balance sheet.

Why is Tesla selling Bitcoin so important?

Tesla’s sales initially seemed negative, but now it turns out that’s not the case. But not only was it not negative, it addresses a consistent issue at the heart of the debate over Bitcoin and other cryptocurrencies.

One of the main problems with Bitcoin is its ease of liquidity. It’s a problem that isn’t perfect yet, and is never perfect. But Tesla has proven that even a billion-dollar company can liquidate a $ 100 million position.

Another problem investors have is that Bitcoin is not a good store of value due to its volatility. That may be the case, but Bitcoin is much less volatile than it used to be.

In addition, if you keep it as a valuable store, you need to keep it for a long time. Therefore, many of its short-term volatility risks are not important.

This development by Tesla and its Bitcoin holdings may not have a direct impact, Cryptocurrency industryI think it’s a positive development.

Therefore, if you do not already own some crypto stocks, we recommend that you consider adding a small position to your portfolio.

What are the top crypto stocks to buy now?

The easiest way to get exposure to Bitcoin today is to buy stocks such as: Purpose Bitcoin ETF (TSX: BTCC). ETF It’s a great choice as the fund holds Bitcoin for you.

This fund acts as a custodian for all buying and selling. This is the easiest way to get exposure to digital coins.

It’s one of the most cost-effective ways to get in touch with Bitcoin’s insane long-term potential with minimal administrative fees. This is clearly an asset that we want to expose in the long run, as more and more companies, such as Tesla, continue to add Bitcoin to their balance sheets.

In addition, purchasing an investment in a registered account such as TFSA will keep all capital gains you may earn tax exempt.

Another Canadian Growth stock Considering if you want exposure to Bitcoin HIVE blockchain technology (TSXV: HIVE)..

HIVE is the best choice as it is a cryptocurrency miner that offers investors even more upward potential when prices rise. However, HIVE is considerably more diverse than many other peers. It helps reduce risk significantly. This is another reason why it is one of the best crypto stocks to buy right now.

Another reason HIVE has so much potential is that one of the coins HIVE is exposed to Ethereum.. Ethereum blockchain has great potential with its technology. It is already the most widely used blockchain and will only continue to grow with more innovation and development.

So if you’re looking for the best crypto stocks to gain exposure to Bitcoin and other digital coins, HIVE is one of the best crypto stocks to buy right now.

This article represents the opinion of a writer who may disagree with the “official” recommendation position of the Motley Fool Premium Services or Advisors. We are Motley! Asking investment treatises, even our own treatises, can help you think critically about your investment and make decisions to be smarter, happier, and richer. As a result, we may publish articles that may not match recommendations, rankings, or other content. ..

The stupid contributor Daniel da Costa does not have a position in any of the shares mentioned. David Gardner I own a stake in Tesla. Tom Gardner I own a stake in Tesla. Motley Fool owns a stake in Tesla and recommends Tesla.

Tesla Revenue: What Bitcoin Sales Say For The Future of Cryptocurrencies Tesla Revenue: What Bitcoin Sales Say For The Future of Cryptocurrencies

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