It’s not often that a company with a $20 billion dollar market cap (excluding the debt) is called a bubble. But that is exactly what Morgan Stanley’s Adam Jonas is calling Tesla.
Elon Musk just tweeted that he is going to create a way to allow people to buy and sell their doges, and I think he is going to create a valuation bubble. I have been holding off on selling my doges because I believe they will go up in value, but I need to sell some to buy a new car.
Elon Musk just announced that he will start selling the Tesla Model 3 for $35,000, a price that will help bring electric vehicles to the masses. But, is this a revolutionary price point, or will it only increase the bubble that Musk claims exists around the cryptocurrency markets? The $35,000 price point is targeted at a wider audience than previous models of Tesla. For instance, the Model S was previously priced at $100,000. The Model 3 will be the most affordable electric vehicle on the market, priced to compete with gas-powered vehicles like the Chevy Bolt.. Read more about dogecoin and let us know what you think.As the market crashed and lost over $600 billion, Elon took to his Twitter and named the sixth largest crypto currency, Doge. In recent weeks, Mr. Musk has been very vague in his tweets about what he has to do with Dogecoin. Price fluctuations are common for any cryptocurrency, but when it comes to a meme currency like Doge, the volatility is entirely based on a single tweet. If Elon makes a bold statement on Twitter in favor of the currency, the price will begin to surge, and if he makes a speculative comment, the drop will be steep – up to 30-40%. The reason we can’t fully trust Elon Musk’s opinion is because his opinion of Doge changes every week. Last year, he tweeted: Sorry, I only sell Doge! That was the reaction of a Twitter user who asked for his bitcoin. In July 2020, Dogecoin had a price of $0.0034, and at the time of writing, it stands at $0.3311. This means that the value of the token has increased 100 times in less than a year. Does this mean Elon will still support Doge and help him reach the $1 mark? No, we cannot say that with absolute certainty, for two main reasons: 1. Mr. Musk’s tweets don’t reveal the full truth about his stance on Doge’s future. 2. The theory of the great fool is not practical for a digital asset like Doge. Let’s break them down in order. First, Elon Musk’s recent tweets highlight that he is holding on to the debt and is not ready to sell. In his latest tweet, he asks the community: How much is the dog in the window? He’s changed his long-term perspective in short order, and that’s never a good sign. Thousands, if not millions, of would-be investors still believe that Doge could indeed reach $1, and it’s not just the general public – many crypto-currency analysts with extensive experience believe it could be reached by the end of 2021. This may seem satisfactory as the Doge community grows, and perhaps more will come. But it’s also important to note that Mr. Musk’s tweets are not financial advice. For example, if Elon stopped tweeting about Doge tomorrow and took a new position, could Doge reach or even surpass its previous ATH of $0.69? It’s unlikely, and here’s why: There is a Big Fool theory that many people use in their investment decisions. We can use the same to understand why Dogecoin is currently building a valuation bubble. According to this theory, an investor who believes in a company or asset because it is fundamentally strong will earn significant returns. There will always be a bigger fool who will buy a good at a higher price. To understand the difference between Dogecoin and other assets, let’s take Tesla and see why people will still buy it at a higher price. The company’s stock price is now $580. So if you believe in electric cars, you can buy Tesla shares and make significant profits in the long run. This is justified because Tesla is solving a serious problem that will result in great compensation in the future. In the case of Doge, we can’t assume people will buy more products for $1 each. All members of the Doge community are raising money in hopes of reaching the dollar mark. Do you think there will be a bigger fool who will continue to buy Dogecoin for $1? That’s right – no one will buy it at that price because it can’t go up anymore. This up and down movement triggered by Elon Musk’s tweets is unlikely to last for years. So you have to make sure that you step in at the right time and take advantage of the momentum. Be careful, and don’t forget to save your winnings.
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Sign up to be notified of the latest posts.Although I believe the disruptive innovation of cryptocurrencies will have a long-term positive effect on our society, it’s hard to deny their current volatility. In the last month, the price of a Bitcoin has fallen from an all-time high above $4,000 to as low as $2,643, which is quite a bit for such a young asset. While I don’t think cryptocurrencies are in a bubble, I do think the current valuations for some of these tokens and coins are getting out of control.. Read more about dogecoin news elon musk and let us know what you think.
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