In its new quarterly earnings report, Tesla says it still has high expectations for the future of digital currencies, so they are still open to investing more capital capital is most commonly defined as the large sum of money you would use to invest. in these assets if their board of directors deems it appropriate.
The electric car manufacturing company founded and led by Elon Musk, Tesla, recently reiterated that they believe strongly in the potential of digital currencies, so they still keep on the table to invest investing is when you put money in a financial scheme with the intent of making a gain. in cryptocurrencies as a backup.
Tesla still believes in digital currencies
This was revealed by the Tesla team in a publication recently submitted to the U.S. Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission (SEC) which reads as follows:
“We believe in the long-term potential of digital digital technologies are these electronic tools that have the ability to generate, store or even process data. assets as an investment, and also as a liquid alternative to cash.”
And they add:
“As with any investment and consistent with how we manage our fiat fiat currency is “legal tender” backed by a central government, such as the Federal Reserve, and with its own banking system, such as fractional reserve banking. It can take the form of physical cash, or it can be represented electronically, such as with bank credit. currency-based cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. and cash equivalent accounts, we may increase or decrease our digital asset holdings at any time based on business needs, our view of the market an area or arena, online or offline, in which commercial dealings are conducted. and environmental conditions.”
The statements came in a section of the report in which Tesla reported earnings of USD $1.26 billion from its digital assets for this first quarter of 2022, this without having made major changes to its reported balance sheet for the end of 2021 in relation to the cryptocurrencies under its possession. Let’s keep in mind that the company invested USD $1.5 billion in Bitcoin last year, and as of March 31 those BTC are valued at about USD $1.96 billion, more than 20% of their original value.
Still a “complicated” issue
Statements by the team of Tesla contrast somewhat with the ambivalence with which the CEO of the company has set position towards cryptocurrencies from the company.
Let’s keep in mind that February 2021, Tesla invested the aforementioned amount in Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. and manages the assets as reserves, but a month later made a major announcement and revealed that they would accept the digital currency currency is a medium of exchange that defines value. as a means of payment for cars traded.
However, everything took an important turn a couple of months later, as Musk published through his official account an account is essentially a whose purpose is to track the financial activities of a specific asset/ that unfortunately Tesla could not accept Bitcoin as a means of payment, since the operational functioning of its network a network refers to all nodes in the operation of a blockchain at any given moment in time. involves a large environmental footprint associated with carbon emissions and electricity consumption.
The news was not well received either by enthusiasts or by the markets, especially in the latter where the price of Bitcoin fell sharply and this situation coincided with the announcements made by the government of China, which absolutely banned the marketing and mining of cryptocurrencies in its territory.
Since then, Musk has been working with Michael Saylor (CEO of MicroStrategy) began working to create the Bitcoin Mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. Council which seeks to promote the use of renewable energies for this work, thereby significantly reducing the environmental impact of the network’s operations. At the same time, from Tesla announced that the door was open for reconsideration of the BTC and other digital currencies as a means of payment, as long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. as they meet environmentally friendly standards.
Fanaticism for Dogecoin
Leaving aside the Tesla issue, one of the digital currencies that enjoys Musk’s support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. is Dogecoin, the iconic memecoin memecoins are the crypto tokens created as a joke or meme and claim to offer huge gains to holders. that originally emerged as a parody of the digital currency ecosystem. The eccentric billionaire has repeatedly referred to it as an excellent proposal, openly showing his support in messages posted on Twitter, which has generated a strong impact on its price at specific times.
Such is Musk’s fanaticism for Dogecoin that nowadays you can pay for selected products from the shop of Tesla with the iconic memecoin. But things have gone even further since SpaceX, the space travel company, also came to receive a payment in the form of a DOGE for a commercial cargo bound for the moon.
- Blockstream and Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. to mine Bitcoin with solar power powered by Tesla batteries
- Tesla reported to the SEC that it had USD $101 million loss due to Bitcoin price drop in 2021
- Tesla’s financial statement shows it still holds $1.26 billion in Bitcoin and didn’t sell
Version by Angel Di Matteo / DiarioBitcoin
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