Get All Access for $5/mo

Harsh Goenka Shares Elon Musk's 'Formula' To Get Rich Goenka, who is quite active on the microblogging platform Twitter and enjoys a fan following of 1.5 million followers, talks about a formula used by Musk to gain some fortune lately

By Entrepreneur Staff

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

RPG Group; Tesla/Youtube
Harsh Goenka; Elon Musk

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.

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 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.

Entrepreneur Staff

Entrepreneur Staff


For more than 30 years, Entrepreneur has set the course for success for millions of entrepreneurs and small business owners. We'll teach you the secrets of the winners and give you exactly what you need to lay the groundwork for success.
Side Hustle

Top Secrets to Starting a 6-Figure Etsy Side Hustle That Earns Passive Income, According to 3 People Who Did It

Etsy remains a popular ecommerce platfrom for sellers — and can be incredibly lucrative for those who know how to use it.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

SoftBank CEO Says AI 10x Smarter Than Humans Could Be Here in a Matter of Years

SoftBank CEO Masayoshi Son spoke to shareholders during the company's general meeting on Friday.

Business News

Amazon Is Thinking About Charging Extra for AI Alexa

"Hey Alexa, how much are you going to cost?"

News and Trends

Nirwana.AI Raises Seed Funding at Over INR 100 Crore Valuation to Revolutionize Interior Design

With its first-mover advantage in India, Nirwana.AI provides designers and homeowners with quick ideation tools, powerful product visualization, and extensive user control

Science & Technology

The 7-Step ChatGPT Formula for Peak Productivity and Profit

With this powerful solution, you can take your productivity and profitability to new heights with ease.