On June 13, Bitcoin plummeted more than 15%. Bitcoin fell 5.4% to $21,991.89 on June 14, its lowest close since December 16, 2020. Currently, Bitcoin price is at $21,863.90.
Electric car maker Tesla has lost about $530 million on its investment in bitcoin as the price of bitcoin continues to fall. In early 2021, Tesla spent $1.5 billion to buy a lot of Bitcoin. Tesla’s investment in Bitcoin has also taken a heavy toll as Bitcoin’s price has fallen, currently at its lowest level since December 2020. According to relevant data, Tesla currently holds 43,200 bitcoins, worth $968 million, and investing in bitcoin has lost about $530 million. When Tesla reports its second-quarter earnings in July, it should report losses related to its bitcoin investments. Tesla claims that the purpose of its investment in Bitcoin is to diversify sources of liquidity and make asset allocation more flexible. The investment paid off in Tesla’s first few months of buying Bitcoin, especially when Bitcoin hit an all-time high of $69,044.77 on November 10 last year, Tesla made a lot of money Full. But now it has turned to losses.
In addition to Tesla, MicroStrategy, a software company led by billionaire Michael Saylor, has also lost money investing in bitcoin. MicroStrategy currently holds 129,218 bitcoins, with a total purchase price of $3.97 billion, but it has now shrunk to $2.895 billion, with a paper loss of more than $1 billion. The fintech company Block, led by personal social media Twitter founder Jack Dorsey (Jack Dorsey), currently holds 8,027 bitcoins and spent $220 million at the time of the purchase. According to relevant data, this batch of digital assets is now only worth $180 million. Block loses nearly $40 million. Microsoft founder Bill Gates once again criticized digital assets at the TechCrunch climate conference on June 14, calling cryptocurrency projects such as NFTs “a scam based on a greater fool theory.”
Gates also said he is neither long nor short the asset class. Gates has criticized cryptocurrencies before, and last year he debated with Tesla CEO Elon Musk over whether bitcoin is too risky for retail investors and the environmental harm of mining bitcoin. IT House learned that on June 13, Bitcoin plummeted by more than 15%. Bitcoin fell 5.4% to $21,991.89 on June 14, its lowest close since December 16, 2020. Currently, Bitcoin price is at $21,863.90. IT Home has learned that the greater fool theory refers to the fact that in capital markets (such as stocks and futures markets), people are willing to pay high prices regardless of the true value of something because they expect There will be a bigger fool who will buy it from them for a higher price. One of the most important truths that Bo silly theory tells people is: in this world, being stupid is not terrible, what is terrible is to be the last fool.