Elon Musk Intends to Sell 10% of His Tesla Shares – Should He Buy More Bitcoin?

Billionaire Elon Musk is known for his unconventional thoughts and last asked on Twitter if he should sell his 10% stake in Tesla and promised to “follow the survey results”. He tweeted:

“Lately, most of the unrealized gains have been tax avoidance, so I suggest selling 10% of my Tesla stock.”

https://twitter.com/elonmusk/status/1457064697782489088?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener

This is not the first time Musk has made targeted proposals to tax the net worth of billionaires in Washington. Under current US tax law, assets such as stocks are not taxed until they are sold – so-called capital gains. But the richest of the rich in America are unlikely to be selling their huge stock portfolios; Instead, their primary form of income is the value that those assets have acquired or not realized.

Last month, Musk criticized the Democrats’ proposal to tax billionaires, saying it marked the start of a new campaign by the left to redistribute the wealth of the richest people in the United States.

Musk’s net worth hit the $ 335 billion mark that year as Tesla stock shot up to more than $ 1,000 per unit. He is by far the richest person in the world, according to a Bloomberg tracking index.

When unrealized earnings are counted as income, billionaires pay an average income tax of 8.2%, much less than the average American.

Meanwhile, a new analysis by economist Gabriel Zucman shows that Musk could pay up to $ 50 billion in taxes in the first five years if the billionaire tax is passed.

Will Musk Buy More Bitcoins?

Musk’s most recent tweet received more than 1 million votes, with 54.2% of respondents voting yes.

Bitcoin and crypto investors are also very interested in this billionaire’s proposal. Some urged Musk to restore BTC payments on the company’s products, while others were thrilled that the news could be a “bullish” sign for the crypto market.

Financial analyst Kevin Paffrath points out four factors to consider in determining whether Musk wants to buy more Bitcoin.

• First, Musk will tend to shift money from cash to other assets due to “inflation concerns”.
• Second, Bitcoin could be one of its biggest investments right now.
• Third, since Musk has sold all of his real estate, it is unlikely that he will put any more money into it.
• Finally: “We expect Tesla to accept BTC again. I think $ 12-13 billion goes into crypto. I can see that Musk is a little more careful with the dollar (currency), so I bet on BTC. “

Commenting on Musk’s tweet, MicroStrategy CEO Michael Saylor said:

“If the goal is diversification, an alternative strategy is to convert the TSLA dollar balance sheet to a bitcoin standard and buy $ 25 billion in BTC. That would offer diversification, inflation protection and more tax advantages. “

Bitcoin is trading at $ 61,974 and is up nearly 2% in the past 24 hours.

Source: TradingView

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Annie

According to AzCoin News

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