In 2022, the price of bitcoin will overtake Tesla.
Both properties faced several challenges during the year.
Bitcoin looks like a better investment in 2023.
Bitcoin price performance in 2022 has been very poor. It’s down 64% this year, making it one of the worst years on record. Tesla is doing very badly. With a 74% decline in 2022, the company is having its worst year and quarter ever. Bitcoin’s market cap has dropped to about $320 billion while Tesla’s has risen from $1 trillion to about $344 billion.
bitcoin vs tesla
Tesla and Bitcoin There are two significantly different financial assets. Bitcoin is a cryptocurrency that seeks to replace fiat currencies while Tesla is an automotive disruptor that seeks to eliminate the internal combustion engine (ICE).
Yet the two properties have a lot in common. They are both disruptors in their respective industries and have a huge fan following internationally. Elon Musk loves two assets.
Furthermore, they are both indicative of what happens when interest rates are kept low for so long. Following the Global Financial Crisis (GFC), central banks led by the Federal Reserve adopted easy money policy to support the economy. But rates have remained so low for so long that, as we wrote, ushering in an era of irrational exuberance here,
Another similarity between Bitcoin and Tesla is that they both face significant competition. There are now over 20,000 cryptocurrencies calling for the elimination of BTC. Similarly, the number of EV startups is growing significantly, with most traditional EV companies shifting to EV models.
why btc and tesla crashed
Bitcoin price fell due to high interest rates and challenges in the crypto industry. The biggest scandal in the industry was the collapse of Terra, which helped lead to the bankruptcies of Voyager Digital, FTX, and Celsius.
Tesla, on the other hand, is facing serious competition, while its CEO has been hamstrung by Twitter’s acquisition. Analysts believe that his divided attention has played a significant role in the decline of his net worth of over $120 billion.
In addition, Tesla faces significant competition while demand for its cars has dropped significantly over the past few months. Car sales have declined due to rising inflation.
Better buy between TSLA and BTC in 2023
So, which is the better buy in 2023 between Tesla and Bitcoin? Both will struggle in 2023 as the economy faces a triple whammy of high interest rates, slow growth and high inflation. However, due to valuation metrics and market share, I think bitcoin is a better investment than Tesla.
As Tesla moves from a growth company to a value stock, its price will need to go down a lot. For one, companies like General Motors and Ford are valued at less than $50 billion. On the other hand, bitcoin has proven to be a market leader in its industry despite facing significant competition.