"It was inevitable" Elon Musk dropped a hint & then $1.5B into Bitcoin and now we wait to see the flow on effects.

Elon Musk and Tesla have invested $1.5B or 15% of their cash reserves into Bitcoin as the cryptocurrency starts to gather some very serious momentum. And now it's a race for other companies and hedge funds to get in before it's too late.

NOT TO MENTION that Tesla announced that they are looking to accept bitcoin as payment for their vehicles in the future, with the option to hold those coins, rather than cashing out. Which means that as time goes, the more sales they make with payment via Bitcoin, their holdings and their position in Bitcoin will continue to grow and grow.

The incredible growth of Bitcoin and crypto over recent years has only snowballed since inception and it took a big and bold move from Tesla to truly encourage the big players to consider Bitcoin as a viable investment option.

Bitcoin has performed much better than most asset classes and also very differently to most asset classes and that makes for good diversification for companies that have billions of dollars in cash that could be better used via investments. And Elon Musk through Tesla have opened the floodgates to what sort of potential Bitcoin and crypto can have in the future.

When one giant dives in, many others follow suit and that flow on effect could have huge, positive implications for Bitcoin going forward. The price of Bitcoin immediately sky rocketed and have since levelled out, but as more institutional investors jump on board (which is very likely now) we might see a few more big jumps yet.

An important argument is that Bitcoin used to not be environmentally friendly to mine, with the key words being "used to". It seems that in more recent years the technologies and processes have improved and it is now am eco friendly option for currency. This fits Elon's MO and I would expect nothing less than this from the man who is trying to move the world forward in a very green and eco friendly manner. The health of the planet has always been at the forefront for Musk.

Another important point to note is that with Bitcoin growing so rapidly, it is hard for hedge funds to justify to their clients why the gains on their portfolios is vastly underperforming those with Bitcoin, and these slower returns become an underlying reason for clients to move to a more aggressive and progressive investing firm. Bitcoin can grow by percentages in the hundreds, while most hedge funds expect 7-15% growth per year...a long way off the mark.

At this point, for me, I believe that having a small percentage of your portfolio in bitcoin is a wise idea, as long as you are using funds that you can easily afford to lose. It is highly speculative and extremely volatile, with 20-30% swings being the norm, but to have 1-2% of your portfolio in Bitcoin may be starting to look like a better and better idea by the day.


Disclaimer:
The information in this video is general information and for entertainment purposes only and should not be taken as constituting professional advice.
I am not a financial adviser and you should seek independent, licensed, financial advice to make sure the actions you plan to take suit your individual circumstances.
I am not responsible for the financial decisions that you make, only you are.