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West Lafayette IN | My kids tell me about a kid at their high school who has invested all of his money in Tesla stock and it is worth $50,000. I think it’s wonderful that this kid is learning about investing and he has peeked my kids interest in investing and finance for that matter. Therefore, we’ve been watching Tesla stock. There must be a lot of folks investing in Tesla because a month ago, Elon Musk became the richest man in the world. A few days ago, I hear that Tesla bought $1.5 billion of Bitcoin. This was 7.5% of their cash on hand. Immediately, the price of Bitcoin when up, 25% and therefore, Tesla stock went up. I’m sure the folks that sold Bitcoin when Tesla was buying feel foolish even though they sold at the current high and the folks that still own Bitcoin believe they are 25% richer. However, think about it this way. The high school kid doesn’t have nor ever had $50,000. He has an I owe you from Tesla for $50,000. Tesla has an I owe you from Bitcoin for $1.5 billion. The folks that still own Bitcoin think they are rich and the folks that sold Bitcoin for a government backed currency feel foolish. The folks who made a profit and are holding real money feel foolish and the folks with I owe you’s are dumping Gatorade on each other. | |
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Question about a Tesla buying Bitcoin
