‘Playing with firecrackers’: Bitcoin’s price plunge shows risks for Tesla

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Tesla’s disclosure this month that it was putting an unprecedented $US1.5 billion ($1.9 billion) of its cash into Bitcoin drew several raised eyebrows, but in the following days, it had appeared to have paid off.After the cryptocurrency hit a record high above $US58,000 on the weekend, Tesla was estimated to have made a $US1 billion profit in little more than a month. It is a bigger profit than Tesla has ever realised from selling electric vehicles, and appeared to have won over the doubters who argued that Elon Musk was being risky with his investors’ cash.But a rapid drop in Bitcoin’s price this week showed the downside. It has fallen by as much as 20 per cent since Sunday, at one point dipping below the $US45,000 mark before a slight recovery.Musk himself was seen as somewhat responsible, having tweeted over the weekend that the price “seems high”, while US treasury…

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