The Diary Game 11/05/2021. Because He is What Really Mean an Influencer.

alein (70)memberin Italy • 4 years ago

Tesla announced in February that it had bought Bitcoin for $ 1.5 billion and could soon sell cars in that currency. That was important news on many levels.

First, it was the first time a large-scale company had invested cash in Bitcoin. This action gives confidence to the Bitcoin currency, gives it a part of the image capital that Tesla has in the world, from its cool. For cryptocurrency, it was the best news and was immediately known in the value of Bitcoin, which jumped from $ 37,000 to $ 44,000 per unit in minutes.

Good news for those who already owned Bitcoin, right? Free money, gift from Elon Musk.

Or, if you want a broader context and a numerical example, the lowest value of Bitcoin in the last 52 weeks was a $ 3,797 sometime in early 2020 and yesterday's high was an all-time-high of $ 44,700 . An investment at the right time in the last year (regardless of the amount, because you can also buy fractions of bitcoin) could have brought you a return of 1200%.

This is not investment advice. Do not invest in cryptocurrencies unless you understand very well what they are, why their price varies and if you are willing to lose all the money invested. Volatility is very high.

But much more interesting is the fact that now, perhaps for the first time, we see how an influencer earns a lot of money from exercising his "influence" on social media. I mean Elon Musk.

Tesla bought those Bitcoin sometime in January. On February 8, he only declared the investment in documents required by the US authorities, on which occasion he found out about it.

Two weeks later, Musk put the hashtag #bitcoin in his Twitter biography. It has 46 million followers there. The price of Bitcoin then rose by $ 5,000.

Lately, he has given several messages of support for Dogecoin, which is also a cryptocurrency. Each such tweet made the price of Dogecoin rise, sometimes hundreds of times, because people bought Dogecoin after reading that Musk claims or at least believes that the coin has a good principle behind it.

Cryptocurrencies are evolving similarly in the market. Every time Dogecoin jumped, Bitcoin also enjoyed attention and growth, and from there Tesla also benefited.

With 46 million followers, any positive message from Musk about Bitcoin will increase its price. If Tesla's example is followed by other companies, the price will rise then, so here's what Musk says or does influences a market of hundreds of millions of dollars. This gives influencing! I said hundreds of millions. I don't know when Tesla invested in Bitcoin, but it is also possible that the idea came after the exchange of messages below LINK, from December 20th.

If it is not stated exactly somewhere, it is impossible to know when Tesla invested in Bitcoin. $ 1.5 billion is a small amount, the volume traded daily on Bitcoin (sell and buy together) varies between 50 and 120 billion dollars and so the amount invested by Tesla would not generate a spike in the volume chart. Suppose, however, that Tesla bought Bitcoin when it was at a minimum. Maybe on January 11, when it was $ 31,000, or on January 22, when it was $ 29,000 (and maybe even lower, which is the average price of the day). In the latter option, $ 1.5 billion could buy 51,724 BTC.

Two weeks later, the 51,724 BTCs were worth $ 2.31 billion at peak time. Today, it's worth about $ 3 billion, plus / minus a few million dollars.

In other words, by the power of example, because he is an influencer, Musk brought his company $ 800 million in 2 weeks. It is the equivalent of selling 8,000 Tesla Model S cars, but money made with no other work than a few tweets. That’s influencing!

Now I'm curious what other companies will follow suit, buy Bitcoin in secret and try to pump the price through social media.

PS: when I mean that the 800 million was made from a few tweets, I mean that amount. How he made the initial $ 1.5 billion, and how he made those 46 million followers, is another discussion. He did a lot of work through those a cool book on the subject. Musk is, in fact, the richest man on the planet. It remains to be seen whether his tweets are not considered a kind of insider trading or unethical.

#thediarygame #italy #betterlife #wtritings #steemexclusive #steemcurators #blog #bitcoin