Elon Sold $22 Billion of Tesla Shares | Miners’ Situation

Tesla stock had a bad year

US stocks at the beginning of the week fell in both S&P 500 and Nasdaq, only Dow Jones increased slightly by 0.11%. Stock futures also tend to be similar. Oil and gold fluctuated around the price of 79 USD/barrel and 1818 USD/barrel.

The biggest news yesterday was the fact that Tesla shares are plummeting. Tesla’s sell-off ramped up on Tuesday, causing the stock to close 11% lower. Tesla’s stock is just days away from its worst month, quarter and year end on record, and has overtaken Meta to become the worst performer in 2022 among the most valuable tech companies. most valuable.

Tesla stock is down 73% from its November 2021 record high. The stock is down 69% in 2022, more than double the Nasdaq’s drop. Among the major automakers, Ford was down 46 percent and General Motors was down 43 percent.

Some of the reasons for the fall in Tesla stock are said to be that Elon Musk has spent too much time on Twitter. Additionally, according to mid-December filings, Musk sold about 22 million more Tesla shares, worth about $3.6 billion. Since April 2022, it is estimated that Elon Musk has sold a total of $ 22.9 billion in Tesla shares. Another reason is that confidence in Tesla’s business prospects next year will be more difficult, the number of cars sold will decrease. These are the reasons that are believed to have caused Tesla stock to plummet during the year. Some say it’s been a bad year for Tesla stock. But there are also views that this is an opportunity to buy Tesla shares at a good price.

Crypto and FTX Updates

Crypto fell slightly yesterday. BTC price fell to around 16,600 USD.

Crypto Markets continues to update information from FTX regarding Sam’s Robinhood stock settlement. In an affidavit provided to a Caribbean court prior to his arrest, Sam Bankman-Fried said he and FTX co-founder Gary Wang together borrowed more than $546 million from Alameda through a period votes in April and May. They used the money to start Emergent Fidelity Technologies. This is the same shell company SBF used to buy a 7.6% stake in Robinhood this past May. These shares are now worth more than $440 million.

The relationship regarding the number of Robinhood shares is quite complicated. If this money belongs to Alameda, and this company uses shares as collateral with BlockFi, these shares will belong to BlockFi. However, if the money used to buy Robinhood shares goes back to FTX, because Alameda took the money from the exchange, the shares would have to be frozen and returned to the victim. Further information on FTX and Sam will be available after the next court hearing on January 3, 2023.

Looking back, 2022 was a year a lot of crypto companies collapsed and filed for bankruptcy. BlockFi after bankruptcy will have its next court hearing on January 20 next year. Only then will there be more updates on the treatment of victims of this company.

The sale of miners during the difficult year of crypto is also something to watch out for. Several US Bitcoin mining companies listed on the stock exchange have reported their BTC mining, sales, and reserves to the SEC.

It can be seen that there are companies that sell all the BTC mined as well as sell more reserves such as Core Scientific, Iris Energy, Argo, … These companies often do not have a good financial plan and take on a lot of debt. , they do not have a financial plan for when the market is difficult.

In contrast, companies like Marathon, Hut8 are big miners that seem to store all the BTC they mine and don’t sell to wait for better prices. They took advantage of selling when the market was good and had financing for the current market time without selling BTC. If the market is better next year, the selling force of miners will be negligible.

Mining BTC is risky but also profitable for companies with good long-term plans. The mining difficulty is proportional to the mining speed, so when the market is difficult, there are miners leaving the market, then the mining speed decreases and the mining difficulty also adjusts. Miners that survive will take advantage of the times when the difficulty drops and mine more BTC.

Year-end talk

Thuan has been investing in crypto for many years and so far has had some success in his investment. Despite experiencing many ups and downs of the market over the years, Thuan’s belief in BTC and crypto remains intact and is getting stronger. Thuan has always believed that Bitcoin is a valuable asset and will continue to grow.

When it comes to the beliefs of long-term investors like Thuan and his friends, we also look at someone who is always attacking the crypto market, Peter Schiff. As a major investor, Peter Schiff has also known BTC since 2012 and started criticizing it in front of many holders. And over the years, he has always used market downturns to speak ill of BTC and crypto.

To understand the reason behind this action, Peter Schiff is a person who invests as much in gold as in gold companies. It seems that he realized the value of BTC and saw that it could threaten the position of gold so he did not stop attacking BTC. Many people also don’t like BTC possibly for a personal reason like Peter Schiff.

Even legendary investor Warren Buffett doesn’t like BTC. He said that BTC long-term storage, one BTC is still just one BTC. And to him, BTC has no value so no investment. However, Warren Buffett once said the same thing about gold. He has always liked to invest in company stocks. It can be seen that famous investors choose to invest also have their own reasons as well as different choices.

Newspapers also share conflicting information about BTC and crypto. Often negative information will attract good viewers and bring more effective advertising. Therefore, these news channels or even interviews will prioritize giving bad information about BTC and crypto. Therefore, each person needs to have their own knowledge and judgment when investing. Other people’s opinions or information pages are only a part of my reference.

For each person, when choosing to invest in an asset, there is a reason for it. Most of us work and create value. That value can be redeemed through storable assets or national fiat currency. However, fiat money is not a long-term store of value because it is always subject to inflation. So each will want to look for assets to store value. There are many different assets according to the needs and goals of each individual such as gold, long-term stocks, real estate, or crypto. Personally, Thuan chooses BTC as a long-term storage asset with his belief in its future.

In his portfolio, Thuan’s crypto accounts for about a quarter of his assets. In which, BTC accounts for the largest proportion (58%) of the cryptos Thuan is holding. And Thuan is still averaging long-term prices for BTC and taking profits at the right time.

Since the time CHK channel was established in May 2017, the price of BTC has increased by more than 500%. With Thuan, long-term storage with BTC still gives the best returns compared to other assets.

So the question is how long is long-term storage?

Below is a comparison chart of returns when investing in BTC, S&P 500 and gold.

As can be seen, within the past year, the return on investment in BTC is low, longer periods will be much different. Because the market cycle of gold and stocks are long-standing assets that are decades long. But BTC is a new asset and its cycle is shorter at only about 4 years. Therefore, the growth of BTC every four years is much higher than that of gold and the S&P 500. The longer the period, the greater the cumulative growth per cycle of BTC compared to other assets.

In the long-term, investment channels such as gold, S&P 500 or even BTC show growth. Therefore, in his personal opinion, Thuan believes that the biggest mistake is not co-investing. And the second mistake is investing in the wrong place. In the next 8 to 12 years, Thuan still believes that investing in BTC gives better returns than other investments. BTC is a newly formed asset so it is riskier. At the same time, the profit opportunity when investing in new assets like BTC will also be higher when understanding and having the right investment.

Advantages and disadvantages of BTC when compared to gold and fiat money

Below is a table comparing the characteristics of money and other characteristics of BTC with gold and fiat money Thuan wants to share with you.

Regarding the functional features of money as a unit of payment and medium of exchange, fiat money is doing well in this function, but it is weak in its ability to store value. And BTC is strong in the function of storing value, which has grown tremendously since its inception. In terms of function as a payment and exchange unit, it is weaker than fiat money. As for gold, all three of these functions are weak because gold is difficult to move, difficult to divide for payment, and at the same time, the gold price is almost unchanged compared to 10 years ago, so it cannot be guaranteed to store value.

Next, characteristics such as durability, portability, divisibility, and limited supply make BTC all the more dominant over gold and fiat money. BTC is on the blockchain and is by far almost indestructible. The mobility of BTC is very high, moving BTC is simple and fast as well as not limited by geographical space, laws like gold or fiat money. The supply of BTC is only 21 million in total. But fiat money is unlimited because it can be printed unlimitedly by the government. Gold has no fixed supply and is still mined every year.

Other characteristics such as historical stability are the advantages of gold, followed by fiat money. BTC was just born in 2008, so its history is the shortest when compared to gold and fiat money. BTC has strong advantages in resisting censorship and online use. This has been very clear over the years, Bitcoin can move easily without being controlled by geospatial, country or any other authority and of course it moves on the network. These two characteristics are both weak. With fiat money can move online through the banking system but subject to national control. Fiat money is still a good payer in terms of tax payments and refunds as it is controlled by state agencies. Both BTC and gold are weak in these two characteristics.

Overall, BTC still has a lot of outstanding advantages that we compared above with gold and fiat money. It is the outstanding advantages such as value storage, limited supply, divisibility, censorship resistance, … that contribute to the value of BTC and help BTC develop in the long term.