Elon musk loses $15 billion in a day after bitcoin warning

picture credits- somag.com

Sadly for Elon Musk he is no longer the richest man of the world anymore. To add to his list of sorrows his arch rival Amazon founder Jeff Bezos has reclaimed the top spot as the world’s richest man. Musk’s ordeal comes after biggest decline in Tesla’s share price since September which wiped $15.2 billion from his net worth.

picture credits- bloomberg.com

For the interesting part, Musk has himself to blame for his consistent, ill-informed attitude and tweets about the contentious cryptocurrency. His causality on twitter in response to firms, companies and cryptocurrencies has been not welcomed or rather despised by many.

This comes from the pure fact that his tweets make markets too volatile and inconsistent for investors. Musk is known for skyrocketing Company’s shares by merely throwing his weight behind the brand and by merely tweeting about it.

Recently, a significant drop was fueled by a tweet from musk warning that Bitcoin and Ether prices “do seem high”. This comes just two weeks after Tesla invested $1.5 billion dollars in bitcoin and hinted at making it its purchasing currency.

Initially Musk’s announcement was received positively by the investors which consequently raised the market value of the currency above one trillion dollars and the currency reached a price above $58,000.

It was reported earlier this month that Tesla had invested in 43,000 bitcoins during various operations in January. The transaction had consequentially raised company’s market value  above 1 trillion for the first time.

So how did Elon Musk play a role in the currency and his company’s value decline? Elon musk is an ardent supporter of cryptocurrency and also an ardent lover of replying to the tweets of the people on crypto.

Recently economist and market strategist Peter Schiff tweeted, “ according to Elon Musk ‘Bitcoin is almost as much of a hoax as fiat money’. So Elon Musk considers both bitcoin and fiat money to be bullshit. I agree, I just think that bitcoin, which is a digital fiat currency, is even more nonsense than the paper fiat currency issued by central bank . Gold is not silly. It’s real money and better than both!”

Elon musk after adding his insightful arguments to the conservation also added “that said , BTC and ETH seem to be high”. It is what had fueled falling market value of Tesla by a significant 8.6%, stripping Musk of his prominent position.

Maybe Elon Musk should have mince his words and his uncontained enthusiasm to reply to avert such a market debacle. It is also hoped that Elon Musk now learns that how much wait his single tweet carries not only for the market but also for his own wealth. We now hope to encounter conscious, well read tweets from the Tesla owner in the future.