Today I’m blogging about the question – Is it safe to invest in bitcoin because Elon Musk did on Monday?
If you haven’t heard, on Monday Elon Musk announced that Tesla bought $1.5 Billion Dollars in Bitcoin and then bitcoin shot up to $44,000 US (today it went up to $48,000).
He also said that Tesla would start accepting payments for Tesla vehicles in Bitcoin.
Does this mean it is now safe to invest in Bitcoin?
There has been talk that if you are the richest person in the world then anything you are near or buy will automatically increase in value (see article from Bloomberg).
Warren Buffet has this same effect, as is seen when his company Berkshire Hathaway buys stocks such as Apple.
There’s also talk that Michael Burry, famous investor who shorted mortgage bonds before the housing crisis and featured in The Big Short, believes that Elon Musk is trying to hide the poor performance Tesla is having in China (see article from Markets Insider).
It plain to see that there is a lot going on in the markets and according to the Markets Insider, Michael Burry is hinting that the markets are bubbling over and about to go bust.
So, should you invest in Bitcoin because Elon Musk did on Monday.
I’m inclined to say what most people agree on, that Bitcoin is a very risky investment.
Bitcoin is a digital currency.
You invest only what you are willing to lose.
If you are an expert in price volatility trading, then you’re busy making your profits.
Otherwise, be careful and weigh the risks involved before jumping into or further investing in Bitcoin.