Cryptocurrencies: Tech companies should follow Tesla's example and sell Bitcoin

The 2018 cryptocurrency crash was worse than the winter that currently captures the cryptoma markets. The difference this time is the amount of money that is about. In 2018, according to the price tracking page Coingecko, around $ 700 billion wiped off the highlight of the market. So far, the value of the cryptom market has fallen by more than $ 1.2 trillion this year.

To this sum, millions of dollars can be added by criminals. This week, Solana crypto wallets and the start-up nomad, which runs bridges between blockchains, were attacked by hackers.

for block, coinbase, Tesla and the other technology companies that have decided to invest in cryptocurrencies, it becomes increasingly unsustainable to keep reserves in volatile assets. Diversification is a poor justification for high losses.

The software manufacturer Microstrategy illustrates the risk. The reward for the investment in Bitcoin was an impairment of almost 1 billion USD for the second quarter of the year. In June it still invested almost 2 billion USD, which made up the majority of its reserves.

The Bitcoin supporter Michael Saylor has resigned from Microstrategy as a Chief Executive, but remains unreasonable. His new role as CEO will concentrate on the acquisition of Bitcoin. Such a determined focus means that the transformation of Microstrategy into a vehicle for crypto investments in the eyes of the market is almost complete. The value of its Bitcoin stocks now corresponds to more than half of its market capitalization, compared to a third in early 2021.

Those who want to contain losses without losing their face could follow Tesla's example. Boss Elon Musk once boasted that the electric car company had "diamond hands"-a crypto switching language for sticking to digital assets, even if the prices fall. But it has decided to sell most of its Bitcoin stocks of $ 1.5 billion. The company justified its decision by the fact that in the middle of supply chain problems it needed cash and that it did not change its view of digital assets. Supporting the worst crash means that a loss of value of only $ 106 million was reported in connection with the sale.

The worst sale could be over. But it is also the speculative fever of 2021. The foolishness, corporate money in unstable digital assets should not be repeated.