Elon Musk has just revealed that the Tesla bank account in Europe has to deal with negative nominal interest rates. The Tesla CEO said "we definitely move that into Bitcoin."
Elon Musk on Negative Interest Rates
In a tweet sharing a clip of Elon Musk explaining their bank account situation in Europe, the CEO replied "what is the world coming to?" Elon Musk revealed that he was annoyed at seeing the Tesla bank account balance drop.
For those that aren't too familiar with what negative interest rates actually mean, according to Schroders, these negative interest rates are penalties for consumers and businesses for actually keeping savings held in their bank account as the total value would reportedly decrease over a period of time.
Bitcoin Drop in Price
The post notes that as some people try to avoid these charges, a number of households could decide to withdraw their savings from the bank itself and invest in a classic home safe. Aside from this being a security risk, the act of withdrawing the users' assets from financial institutions reduces total liquidity and the general ability of banks to be able to lend.
Tesla bought Bitcoin back on February 8, when the coin was purportedly around the $47,000 line, according to Fortune. The cryptocurrency currently stays around the $32,000 mark as of the moment with numbers changing every so often as seen on Binance.
Elon Musk $BTC Price Drop
In an article by Financial Times, Elon Musk revealed that they are not selling any of their Bitcoin and neither is Elon Musk selling anything personally. The Tesla CEO noted that he would like to see Bitcoin succeed.
This statement was in response to critics who reportedly accused him of encouraging and profiting from the recent wild crypto price swings with his bold statements on Twitter. Elon Musk has 58 million followers on Twitter where he noted that if the price of $BTC goes down, he will lose money. The Tesla CEO then noted "I might pump, but I don't dump."
What Cryptocurrency Does Elon Musk Own?
Elon Musk also revealed that he himself had held Bitcoin, Ethereum, and another cryptocurrency that Musk has been talking about, Dogecoin. Two of his companies, both SpaceX and Tesla, invest in Bitcoin and would still remain that way.
The article by Financial Times also noted that Bitcoin as well as other digital coins enjoyed quite a dizzying rise from December 2020 through the beginning of 2021. However, quite a fraction of those gains have reportedly been erased as regulators have started to increase their scrutiny when it comes to the freewheeling market.
It was then stated that there is a trend moving towards increasing numbers and if so, Tesla would then decide to resume accepting Bitcoin. As of the moment, it is still unknown when and if this will happen. Although the top 10 cryptocurrencies are slowly showing bullish signs, it is still not a 100% guarantee that the market is bullish once again.
This article is owned by Tech Times
Written by Urian B.