Bitcoin And Tesla – A Comparison

One of the strangest announcements made by a public company in 2021 was the one made by Tesla regarding its Bitcoin investment. More precisely, the company announced that it invested $1.5 billion in Bitcoin during the month of January 2021. 

The announcement triggered a rally in the price of Bitcoin and, thus, benefited Tesla’s investment. In the meantime, Bitcoin made two consecutive all-time highs, reaching $60k; Elon Musk changed its official title in the company as “techno-king,” and the CFO is now “master of the coin.”

This is the 21-st century, and the rise of cryptocurrencies, as well as Tesla’s popularity, is based on the strong belief that the world is changing. On the one hand, Tesla aims at disrupting the car industry with its electric vehicle fleet, while on the other hand, Bitcoin aims at revolutionizing the financial system as we know it.

Interestingly enough, other similarities between Bitcoin and Tesla exist.

Bitcoin vs. Tesla – Interesting Similarities

To start with, both are fairly young technologies. Remember that Tesla is viewed as a technology company and not a car producer, although the main product is a car. Therefore, when making a comparison between Tesla and General Motors, Ford, or other car producers, that is not quite the peer group to refer to. However, one can use market capitalization to explain the enthusiasm of investors in both Tesla and Bitcoin.

Tesla is around for about five years or so earlier than Bitcoin. They both shared in the past and still share a doomed perspective. On the one hand, Tesla did not make a profit until recently, and even when it did, it did so by selling credit carbon certificates to rivals. Quite the irony, if one thinks of the amount of energy Bitcoin consumes, and yet Tesla invested a big chunk of its free cash flow in Bitcoin.

Anyway, both Bitcoin and Tesla had their fair share of skepticism, and yet they survived. A few years ago, none other than Warren Buffet, the legendary investor, urged investors to stay away from Bitcoin, calling it no more, no less than a mirage.

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Disclaimer: None of the content in this article should be viewed as investment advice or a recommendation to buy or sell. Past performance/statistics may not necessarily reflect future ...

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