Reshab AgarwalRecently, Elon Musk posted a tweet asking if he should sell 10% of his Tesla stocks which is around $25 billion. The reason behind this tweet is the new tax requirements that will need people in the US to pay taxes on unrealized gains. Elon said in the tweet that he will abide by what the results of the polls are and with 13hrs to go, we have 56.2% voting “Yes” and 43.8% voting “No” for him to sell Tesla stocks. He also says that since he doesn’t take a salary or bonus, the only way to pay his taxes is by selling stocks. So, will Elon Musk buy more Bitcoin from the remaining amount after paying taxes? Let’s see.
Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock.
Do you support this?
— Elon Musk (@elonmusk) November 6, 2021
Will Elon Musk buy more Bitcoin?
After Elon made a proposal on Twitter about selling 10% of his Tesla stocks, Anothony Pomp, a big-time BTC investor said that “If you sell $20B+ of stock, the government will be able to fund themselves for a few minutes with the tax payment you’ll make. They’ll celebrate like you balanced the budget though”. While others thought it would be great if he puts more capital in Bitcoin. Some also asked him to start receiving BTC payments again.
The reason that everyone is speculating that Elon could buy Bitcoins from the stock sale is very simple. He knows that inflation is high and if he doesn’t put his money in an asset, it will deplete in value really fast. And since he has already sold all his real estate properties, it’s unlikely he will buy a new one. Then comes other assets like gold and silver which is again an unlikely investment. So, what we are finally left with is Bitcoin as an investment option.
Speculators say that $12-$13 billion of the money could go into crypto and most possibly Bitcoin. There could be a split with Ethereum but that split will be heavily weighed on BTC’s side. This could trigger another sensational rally that could boost the price of BTC to levels never seen before like the time when Tesla’s $1.5 billion purchase pushed it to $65k.
Do you think that Elon Musk buy more Bitcoin? And if yes how much the amount could be? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Bank of America sees crypto as an asset class and not a currency