On July 2, Tesla's shares rose after it was announced that 90,650 vehicles of the company were delivered in the second quarter, exceeding Wall Street expectations. Elon Musk seems unaffected by the current economic situation, unlike his competitors.
And while most reports focus on the fact that Tesla has managed to become a more valuable automotive industry than Toyota, there is another comparison that is worth considering.
On July 2, Tesla's share price closed at $ 1,208.66 and the company's capitalization reached $ 224.1 billion. Bitcoin, which trades at $ 9,136.15, has a market capitalization of $ 168.3 billion. ., while previously it had reached 334 billion dollars.
Indeed, there are several listed companies whose capitalization outweighs the capitalization of Bitcoin and the entire cryptocurrency market. Examples include Microsoft, Apple, Alphabet, Amazon, Facebook and Berkshire Hathaway.
Many governments around the world are monitoring Bitcoin, which has been counterbalanced by other volatile currencies. Bitcoin is very popular in Venezuela, Lebanon and Zimbabwe - all three have experienced hyperinflation. The Russian government has also shown interest in Bitcoin, and has invested in Bitcoin mining, banning its use by citizens.
Proponents of Bitcoin agree that cryptocurrency will replace money for the next generation. And that may be true. However, the FED has announced a 4 trillion US economy support package. and a $ 750 billion corporate bond purchase program, Bitcoin seems insignificant to the US government. What's even more interesting is that the FED could buy all of Bitcoin's stock, eliminating any competition for the US dollar as the world's reserve currency.
There are two possible options for Bitcoin. The first is that a small group of people (or even governments) will accumulate most of the digital asset and reduce its value. This scenario, however, is rather exaggerated if we consider that some of the richest people in the world, such as Jeff Bezos, have more wealth than the capitalization of Bitcoin.
The second possibility is for governments to continue to buy Bitcoin, and use it as a commodity, as is now the case with gold. It is estimated that 45% of the world's gold reserves are in treasuries. A similar approach to Bitcoin could raise its price to higher levels, creating a new situation for cryptocurrency.
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