Please look at Tesla and El Salvador; Bitcoin's currency price has plummeted, resulting in bitter consequences
According to foreign media, Tesla's Bitcoin investment recently exceeded $500 million due to the recent decline in currency prices, but many institutions and individuals who had previously pursued cryptocurrency investments also suffered losses to some extent.
Currently, in the crypto market's “winter,” as of Wednesday the 15th, Bitcoin fell 3.8% on the day, marking 9 consecutive days of decline, the longest such streak since 2014, with offers approaching $20,000.
On the other hand, at the beginning of the 2021 crypto boom, Tesla投入ed a total of $1.5 billion into Bitcoin.One year after the investment, Tesla's Bitcoin holdings briefly peaked at $2 billion earlier this year.
However, just a few months later, the cryptocurrency market collapsed en masse, and the values of some major cryptocurrencies fell off a cliff.
According to data from Bitcoin treasury, Tesla's $1.5 billion Bitcoin investment now has only $905 million remaining.This means Tesla's Bitcoin investment has lost nearly $600 million in value.
Look at Tesla and El Salvador: Bitcoin prices plunged and yielded bitter results.
However, for Tesla, overall losses are limited, as the value of the Bitcoin it holds accounts for only 10% of its cash and represents 0.1% of its total market value.
MicroStrategy, the U.S. company with the largest holdings, is the company with the most Bitcoin in the world, and its stock price fell 25% on Monday.In the recent sustained decline, MicroStrategy's stock price has already reverted to its original level, back to August 2020 levels, when the company announced that it would just put Bitcoin on its balance sheet.
The more Bitcoin you hold, the more severe the drop appears to be.
The Bitcoin crisis in El Salvador.
Not only did major companies take big hits, but El Salvador—the first country in the world to officially declare Bitcoin as legal tender—also suffered greatly during Bitcoin's decline, with its Bitcoin holdings thought to exceed 65% of the country's total value.
Data show that the country's Bitcoin book loss exceeded $56 million. Since Bitcoin was legalized in September, El Salvador has purchased 2,301 Bitcoins, with an average cost of $45,908 per token, and a total cost of about $106 million. As of Wednesday, Bitcoin fell to $21,339, and the country is running a deficit on more than half of its Bitcoin investments.
Despite the setbacks, El Salvador's President Nayib Bukele tweeted on Tuesday that he might continue to buy during the downturn.
Look at Tesla and El Salvador: Bitcoin prices plunged and yielded bitter results.
El Salvador is due to pay $800 million in bonds next January, and the Bitcoin slump raised concerns about El Salvador's cash shortage.
However, El Salvador's Finance Minister Alejandro Zelaya laughs off these concerns, believing that the fiscal risk from Bitcoin is small.
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