An anonymous bitcoin analyst and former institutional investor has recently reacted to news of Tesla’s sale of $936 million worth of bitcoin, which was announced on Wednesday. During an earnings call, Tesla CEO and product architect Elon Musk revealed that the company had sold 75% of its bitcoin holdings for almost $1 trillion.
The purpose of the sale was to shore up the company’s liquidity. There are concerns that the sale was linked to the company’s green ambitions. In May 2021, which triggered a bitcoin sell-off when he criticized its energy profile and suspended bitcoin payments for Tesla. This could be due to Tesla’s exclusion from the S&P 500 ESG index, which focuses on companies that prioritize environmental, social, and governance issues. This was quite a blow to the electric vehicle carmaker, especially since Exxon got the top spot on the list, so the almost $1 trillion bitcoin sale could be part of Tesla’s plans to get back on that list.
There is a reliable way for bitcoin copy trading. Jet-Bot trading platform has a simple registration process with 3-day trial access. You can connect your Binance account to Jet Bot platform via secure Binance API connection. Just click register, and you will get wide range of strategies and indicators to build your perfect crypto trading bot. There are 4565 active bots, so your the average monthly profit can be +21%/month.
In a recent string of tweets, Plan B reacts to Tesla’s news and the ongoing decline in the market. The independent bitcoin analyst and creator of the bitcoin stock to flow model compares the ongoing dip to a generational buying opportunity and gives a midterm price prediction for the world’s largest cryptocurrency.
In his first tweet, he compares this current market trend to previous bottoms that preceded massive price gains. Here’s his tweet:
At the end of 2018, bitcoin plunged to a record low of $3,500 from a peak of over $19,000 a year before. Six months later, the crypto asset had gained over 300%, soaring to over $13,000. The crash of $3,500 was definitely a great buying opportunity for those who took the plunge.
Plan B believes another great buying opportunity has opened up for investors with a high risk tolerance. True diamond hands are buying and looking forward to another all-time high, while weak hands are panicking and calling for the end of the world as we know it.
An interesting reply to Plan B’s tweet raises a very important issue. Eugenio Benetazzo, the CEO of YouChain, the Italian digital asset management firm, asks Plan B if Tesla sold bitcoin to comply with the ESG criteria and how it would impact bitcoin and Plan B’s a S2F if other mega corporations decide to follow the same approach. Here is Plan B’s reply:
The Byzantine Generals Problem is a game theory problem that describes the difficulty dispersed parties face when trying to reach a consensus without the availability of a trusted central authority in distributed computing systems. This problem arises when components fail and there is imperfect information about the failure of the sent component. Since the problem is unknown to the different parties and there is no central authority, there won’t be a fix and the system will essentially become faulty. The bitcoin network is susceptible to the Byzantine General’s Problem because of the lack of a central source of information or a way of confirming information from network users, but Satoshi solved that problem when he created the bitcoin network.
The proof-of-work consensus mechanism requires miners to validate blocks and compete with other miners to solve cryptographic puzzles to produce blocks. Since a network member has to show proof that they put a lot of effort into making each block, only accurate information gets added to the blockchain.
Furthermore, removing a block from the blockchain after it has been added is impossible, making bitcoin’s history unchangeable. Proof of stake systems solve the problem by asking users to lock their funds in the form of escrow and punishing dishonest users through the loss of their funds. This idea is still taking root in the industry, especially among bitcoin maxes like Plan B, who strongly believe in the superiority of the proof of work consensus.
Let’s get back to Plan B’s tweets. In his most recent tweet, the Pseudomonas analyst sheds more light on the two types of investors we have right now. Here is the tweet:
What group of investors do you belong to? Are you waiting for the next bull market and a new all-time high, or are you convinced that this is the end of significant price gains for the world’s largest cryptocurrency in crypto trading?
[This article is a transcription of a video made by Savvy Finance]
[Original video: https://youtu.be/i-s8B_FYRAk]