Harsh Goenka Shares Elon Musk's 'Formula' To Get Rich
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Indian industrialist and business leader Harsh Goenka, who is the chairman of RPG Enterprises popularly known for manufacturing CEAT Tyres, took to Twitter to share a formula Tesla and SpaceX chief executive officer Elon Musk used in recent months to increase his wealth.
Goenka, who is quite active on the microblogging platform and enjoys a fan following of 1.5 million followers, highlighted a formula used by Musk to gain some fortune lately. He said that Musk-led Tesla initially bought $1.5 billion worth Bitcoin and encouraged people to accept Bitcoin. Soon after this Bitcoin’s value shot up, a few days down the line Musk-led company sold all the Bitcoin for $2 billion, thus increasing Musk’s wealth. As per Goenka, later Musk discouraged Bitcoin for ‘environmental issues’ which resulted in the dropping of Bitcoin prices.
Elon Musk’s formula to be Rich:— Harsh Goenka (@hvgoenka) June 10, 2021
- Invest $1.5 bn worth of Bitcoin
- Encourage all to accept Bitcoin
- Bitcoin prices rise
- Sell Bitcoin for $2bn
- Discourage use of Bitcoin for ‘environmental reasons’
- Bitcoin price falls
- Musk become richer
To understand this, we might have to go back a few months. Elon Musk who described himself as ‘Imperator of Mars’ has been showing interest in Bitcoin for some time. It was in early February this year, that Musk-led Tesla bought $1.5 billion Bitcoin and announced that it will accept Bitcoin as a payment in the US.
Post the news, Musk took to Twitter to share that Tesla’s action doesn’t reflect his own opinion. However, he continued to say “Having some Bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P500 company.”
Further defending his company’s decision, he wrote, “However, when fiat currency has negative real interest, only a fool wouldn’t look elsewhere. Bitcoin is almost as bad as fiat money. The key word is “almost”.
After this tweet, Bitcoin value skyrocketed to $53,263 from $51,284. However, last month, Musk said that Tesla will no longer accept Bitcoin as cryptocurrency mining requires burning of fossil fuel. To give some context, Bitcoin mining consumes 130 terawatt-hours of energy annually, which is more energy consumption than Argentina or Netherland and is also 0.6 per cent of the total energy consumption of the world.
Musk, who enjoys 56.9 million followers on Twitter and is often called ‘Memelord’ time and over again, has shown his influence over the cryptocurrency market with single tweets. Soon after his tweet on Tesla stopping Bitcoin payment, Bitcoin’s valuation nosedived.
Post the announcement, Bitcoin valuation fell 10.6 per cent and was trading at $48,000. His announcement also had a major impact on the whole cryptocurrency market as it stood at around $2.43 trillion according to Coinmarketcap.com when Musk made the announcement and within hours, the market capitalization plummeted to around $2.06 trillion.
Bitcoin’s valuation since then has further dropped with China’s move on banning Bitcoin mining exacerbating it further and was trading at $30,066. However after Bitcoin pared off some losses, it is at present trading at $37,051. Meanwhile, Musk has grown an interest in another cryptocurrency, DogeCoin.
While as per report, Tesla was sitting on $2.5 billion worth of Bitcoin, Musk has repeatedly said Tesla has not sold its Bitcoin. Even in his statement while calling Bitcoin payment, he had said that “Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy.”
As for his wealth, Musk temporarily overtook Amazon’s Jeff Bezos to become the richest person with $197 billion. However, at present according to Bloomberg’s Billionaire index, he is the third richest person with a wealth of $169 billion.