If Bitcoin's in a bubble, then TSLA's in a YUGE bubble
If you think Bitcoin is up a ton this past year, wait until you see TSLA...
Every time I turn on CNBC these days there are people talking about how high bitcoin is.
From those saying it's at nosebleed levels to those saying it makes no sense to those saying it's doing to come crashing down because it has gone straight up.
For those people, I have to wonder what they think about TSLA...
If you haven't been paying attention to traditional finance this past year, TSLA has had a monster year.
It's up over 800% from where it started the year, which dwarfs what bitcoin has done:
(Source: https://twitter.com/Schuldensuehner/status/1346889101698621440/photo/1)
From January until now, TSLA is up 820% while bitcoin is ONLY up 390%.
That's basically a 9x for TSLA and a 5x for bitcoin.
So, while yes bitcoin is up a ton, if anyone out there is calling it a bubble they better have even harsher things to say about TSLA.
What goes up must go higher...
The infamous phrase of "what goes up, must come down" doesn't always hold true when it comes to investing.
In fact, if you look back at history at how an asset tends to perform when it makes a new all time high, you will be pretty surprised what you find.
It doesn't go back down after that, nope, it tends to make new high after new high after new high.
That's because there is often a fundamental reason it is going up.
In the case of bitcoin is simply because institutions have finally decided it's a worthwhile holding and there simply isn't enough supply for them to all get involved.
Rising demand in the face of mostly static supply means prices go higher.
There's been a fundamental change with bitcoin and that means that just because it's up, doesn't mean it will go back down.
The game has changed.
Ever since bitcoin broke $20k I have been saying that bitcoin will likely never trade below $20k again and I think that is more true now than ever before.
Right now we have the early adopter type of institutions getting involved, guys like MicroStrategy and Square, but eventually the dinosaurs of the investing world will get involved as well.
They will be the ones putting billions into bitcoin when it is multiples higher of where it is today.
Mike Novogratz said it best yesterday when he said we are in the first half of the first inning with bitcoin.
So, for those thinking bitcoin is too high or in a bubble, they need to understand that the game has changed when institutions got involved and the old rules no longer apply.
Stay informed my friends.
-Doc
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It's nuts. As people are waking up to rising asset inflation they are betting on tech stocks to out-growth this inflation. I guess it's an easier hedge for investors uncomfortable with holding crypto.
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That's exactly it, but it's starting to change.
Tesla is much more linear, and offers cars, solar shingles, and a lot of other products. Bitcoin is trending in a more exponential pattern. I don't think the analogy is quite apt.
Tesla's most valuable asset is its self-driving capability. It's being trained by data fed from the entire Tesla fleet of cars used world-wide. The self-driving capability is based on highly advanced AI that can potentially be utilized in many other fields than self-driving cars.
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Sure it's not apples to apples, but it's a similar market cap that's gone up even more than bitcoin, that's pretty much the only point.
I think these two items are key:
I think the game has changed.
So many longtime Bitcoiners and traders are saying this time is different
So many multi-millionaires and billionaires are getting involved,
Several large companies and other strong hands are involved,
I truly don't know how high it will go, but I am holding on for dear life!
Same here. History would suggest we are just getting started.
So they both bubbles and gonna burst, what is the big deal! They are not magic, or immune! Damp eeeet! brah
You been saying to dump bitcoin since it was $7k. You have missed out on more than 500% gains just from there. Even if you are right and bitcoin went to zero, risking 100% to gain 500% still makes a ton of sense from a risk/reward perspective. Time to admit when wrong.
Brah i didn’t miss jack, i been lying to u, obviously u don’t know how to read! I post my trades on my blog! I say damp eet as a inside joke! Whatever! U don’t need to defend bitcoin to me! Get a life! Haha so long sucker!!
And u know what, d a m p e e e t! BTC dropping hard, to the seafloor!
To be honest it's hard to understand much of what you are saying. But if you didn't miss out, good for you.
yeah i try to be cryptic to drive btc up by manipulating bots. It’s ok. I explained it better to someone here last week:
https://peakd.com/@coininstant/re-joetunex-qmc1zr
nah i made bank today! Best day ever! lol thanks!!
Bitcoin is a bubble alright. But we're talking about a general asset bubble fueled by funny money printed by central banks.
Bitcoin differs from the rest only in that it is a decentralized and algorithmically hard-capped form of money and that it's market cap is still quite small, which translates into a great risk-reward ratio for large investors.
That is the gist of it.
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Is it really a bubble then? You definition doesn't really fit that of a bubble. It's more like funny money making everything go up. Perhaps it was the funny money that was in a bubble...
Hmmm...you're right in the sense that as long as the funny money keeps coming the long time frame bull could go on forever.
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Tesla is all a giant scam, and hopefully one day it will be exposed in full.
Would have taken years before, but it might happen this year at the present rate of change.
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How is it a scam? It's just not a car company, it's a technology company...
How is tesla a scam?
If i had time that could be a good blog post in itself.
But I don't, because too much urgent shit is going on right now!
By the end of this year tesla may be one more secret that the sheeple are waking up to
Like bill gates, elon musk is an actor playing a roll, and both are puppets fronting massive psyops...
But you probably don't want to go down those rabbit holes.
Here is a starting point - this is not a hair transplant:
Tesla might sell their cars at a loss, but they get even with all the subscriptions... That is why Tesla stock price keeps going up.
One could compare it with current model employed by Microsoft, where OEM manufacturers get Windows 10 for almost free, but each included program or game is crippled and requires monthly subscription to enable full features.
The Tesla name brand is extremely valuable. When people think of electric cars, they think of Teslas. They are the Kleenex of the electric car world.
Where did the value come from? It didn't come from just from using the name Tesla, that is for certain...
It's come from creating a desirable product and creating a cult following for the technology. Similar to what AAPL did.
That's right... You can't have value with just using specific name... Think about all the failed Google projects even though their search engine managed to supersede Altavista, which was of superior quality, as primary search engine.
Well tesla are selling a physical product which can do stuff and bitcoin is valuable because we say it's valuable. Not sure if the two can be compared
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It's simply comparing similar market caps, with TSLA being up even more than Bitcoin.
IMO Tesla is more a bubble than bitcoin. Marketcap compares to other car manufactures are pretty high.
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