$1.5 billion in Bitcoin has been invested by Tesla Inc. as reported by Bloomberg News Reports. Tesla Inc. expects to start accepting the cryptocurrency as payment mode. This news has pushed the price of Bitcoin close to $45,000 at the time of writing.
Elon Musk continues to influence the market in positive ways. Time has to determine if this is for the good of the market, or not.
However, the question for the larger retail investors remain: Elon Musk did not buy Doge Coin, but Bitcoin with Tesla Inc. What does that say?
3 shell magic game
There ‘s a shell game popular on the streets of UK and I was drawn to it – lost money in it, to be honest. This pump and dump game is no different. Who supports Doge but caters up to BTC? But then, who can really say where the rewards are hidden?
Doesn’t anybody see this? I can see dead coins lying around, wasted by the Pump and Dump. What’s happening now is reminiscent of the 2017 Initial Coin Offering bubble; Bitcoin sank almost 90% over a year and didn’t fully recover until last December.
After a crypto crash involving Dogecoin, some warned that hedge fund investors who have recently grown fond of crypto might just put Bitcoin in the same pile as Dogecoin and others, not gold or the dollar — call it meme reversion, tongue in cheek
Alexandre Stachtchenko, a board member of Paris-based blockchain association ADAN, laments that a Musk-driven boom-and-bust in Dogecoin would make it harder to promote more serious projects: “A neophyte will not be able to tell the difference.”
We’re in for the long haul; coins that are not massively adopted are doomed to fail. The more profound fear is that if Dogecoin ends up just another YOLO (You Only Live Once) pump-and-dump in the crypto timeline and will reflect poorly on all tokens — even Bitcoin, recently promoted on Wall Street as an alternative to gold.
The tricky thing is that hedge fund investors have already joined the throng taken by the rapidly rising price of Bitcoin and other cryptos which could end up badly in an inflation-driven apocalypse. What happens when all is driven by the promise of outsized gains and artificially scarce supply in a market juiced by central-bank stimulus?
Here’s the thing that’s so simple that even a grade-schooler can see it: when two things of different orientation are pitted against each other in a buying contest, what’s likely to happen? If Dogecoin’s price keeps popping, expect advocates to push stories offering a very different philosophy to drown out Bitcoin’s HODL (Hold On For Dear Life) hoarders.
Investors use the proven strategy of “buy the rumor, sell the news”. Slow-to-act traders often provide the liquidity for in-the-know traders to take advantage of either the “rumor” or the “news.” Take heed that you do not buy the “rumor of an undervalued market”. Or simply, do not play the shell game if your eyes are not quick enough.