FOLLOW US

Tesla (NASDAQ: TSLA) has reportedly made over $1 billion profit from its $1.5 billion investment in Bitcoin (BTC). According to Daniel Ives, an analyst at Wedbush Securities, Tesla is “on a trajectory to make more from its Bitcoin investments than profits from selling its EV (electric vehicle) cars in all of 2020.” The electric car manufacturer announced the purchase of over $1.5 Billion worth of Bitcoin, earlier this month. This move provides "more flexibility and to further diversify and maximize returns on our cash,” Tesla Spokesperson reported. In January, Tesla was able to snatch up a good share of the Bitcoin market for $34,800 per token. Since Tesla’s Bitcoin deal, Bitcoin surged with more than $27,000 after the price of the digital currency rose to an all-time high of $58,000 on Sunday. Meanwhile, Bitcoin’s market capitalization reached a sky-high $1 trillion for the first time in history. Bitcoin’s 65% price surge would turn Tesla’s $1.5 billion BTC investment into around $975 million. If the company sold the digital currency at $58,332, Tesla’s profit would be more than $1 Billion. Nevertheless, Tesla hasn’t disclosed if they’re still keeping Bitcoin or not. “While the Bitcoin investment is a sideshow for Tesla, it’s clearly been a good initial investment and a trend we expect could have a ripple impact for other public companies over the next 12 to 18 months,” Ives said.

Treasury Secretary Yellen warns of Bitcoin usage

Meanwhile, Treasury Secretary Janet Yellen seems like she is still alarmed about Bitcoin. Mrs. Yellen said that there are important questions to ask about Bitcoin’s legitimacy and stability “I don’t think that bitcoin … is widely used as a transaction mechanism. To the extent it is used, I fear it’s often for illicit finance. It’s an extremely inefficient way of conducting transactions, and the amount of energy that’s consumed in processing those transactions is staggering.” Yellen told CNBC’s Andrew Ross Sorkin at the New York Times “DealBook” conference. Bitcoin is a decentralized digital currency that is “mined” by solving mathematical equations through efficient computer GPUs. The process requires massive electricity consumption and results in leaving an enormous carbon footprint. Additionally, Yellen warned of the illegal use of BTC since the digital currency is untraceable. At present, reports say, Bitcoin is heavily used on the Dark Web for money laundering and attaining illegal services and products. Finally, Yellen commented on the cryptocurrency’s extremely high volatility. “It is a highly speculative asset and you know I think people should be aware it can be extremely volatile and I do worry about potential losses that investors can suffer,” Yellen said