How Much did Musk Actually Make by Investing in Digital Currencies?
According to the Bloomberg Billionaires Index in January 2021, Elon Musk became the richest person in the world because of Tesla’s skyrocketing market values and investments in digital currencies. Elon Musk has revealed that he has started investing in digital cryptocurrencies, including Bitcoin, Litecoin, Ethereum and Dogecoin, which is worth at least $8 billion.
When Musk’s Tesla decided to invest $1.5 billion in Bitcoin in January this year, the price of bitcoin was between $29,000 and $37,000. Now, just three months later, the price of bitcoin has exceeded $60,000 per coin. Even if Musk bought bitcoin at the high price of $37,000 per coin, he successfully owned $2.3 billion now. In other words, Musk has made net earnings of $800 million in just three months from his investment in bitcoin alone.
In 2020, Tesla made $721 million in revenue from building cars. That means that Musk made more money from investing in Bitcoin at home within three years than the money made by Teslain an entire year through tough research and development.
Musk promotes dogecoin and its values rise up for 10,000 times. Musk highlights Bitcoin and then Bitcoin rises to more than sixty thousand dollars. As the first KOL in the currency circle, Musk is like the wizard in the Land of Oz. Due to his excellent ability, the price of Bitcoin rose to the top.
Musk is No.1 player in the world and that is his charm. However, the wealth empire of Musk does not come from shouting. What behind the marketing bombard is his remarkable intelligence and far-sighted thinking that we may ignore, such as his first principle thinking. When founding spaceX, he thought problems according to the first principle. Why is spacecraft so expensive? Then he found relevant supporting companies in the market to purchase accessories, so the cost will be reduced. It is the most direct and efficient to convert electrical energy to kinetic energy. Then he invested in Tesla.
Musk always pays high attention to pain points in the future. Among 8 billion people in the world, 3 billion people have not entered the vast space of modern finance. It is impossible to build financial infrastructure on the ground, then, let us go back to online market. However, intermediaries are in the way. To be more direct, let us go to the chain and focus on complete disintermediation. Musk’s grasp of wealth and opportunity will be slowly seen in the flood of capitals.
Decentralized electronic payments are achievable business models. Musk once said, “… All bankers are doing the same thing as everyone else. If anyone else jumps off a cliff, these people will jump after them. If there’s a big pile of gold in the middle of the room and nobody is going to pick it up, these guys will not pick it up”. One of the reasons he started the Internet banking business in the first place was that he believed that the transition from traditional finance to Internet finance was inevitable.
IRON MAN carries on the original intention to do the business of IRON MAN. It gives new value and significance in the original missing reverse market. What goes on Mars will not be only Dogecoin