on the crypto
Thanks to a significant increase in the Tesla title (NASDAQ: TSLA) since the beginning of 2020, a new narrative has emerged: the Tesla title is - apparently - the new bitcoin.
The chronicle of Tesla's soaring price spikes - and its kinship with BTC - has been demolished by almost all analysts in recent times.
Bitcoin and Tesla: "The most important revolutionary technologies in the world"
One of the speculators who recently highlighted this alleged link is Bloomberg Intelligence analyst Mike McGlone.
Other commentators in the crypto sector (and beyond) have also noticed a TSLA-BTC connection. Cryptocurrency trader Scott Melker even suggested that the Tesla stock was imitating BTC's infamous 2017 race to the top.
TSLA has experienced a parabolic trend since the end of October, going from $ 254 to a peak of $ 887 in early February. This marks a sizeable 250% increase in just over three months.
According to these facts, it is understandable that many are associating bitcoin and Tesla. According to McGlone, although the data relating to these two resources seem to align, the main correlation of the couple remains their "disruptive" nature.
Tesla still has revolutionary potential
McGlone is right. Tesla is undoubtedly an innovative company. Its intention to completely replace the means that use obsolete fuels makes it a turning point of great importance, especially in the era of environmental awareness.
Instead of conquering a large market share, as usually happens for innovations with such an overwhelming impact, often producing an economic and effective product, Tesla's success has instead attracted new competitors.
For example, Chevrolet Bolt, Hyundai Ioniq and Nissan Leaf, among others, are presented at a competitive cost compared to Tesla Model 3 which costs $ 39.490.
Despite established competition, the company managed to take over 16% of the electric vehicle market last year.
Has Bitcoin lost its novelty factor?
And then there is bitcoin. It was once referred to as the tug of war for the traditional financial industry, but the revolutionary appeal of bitcoin has almost disappeared in recent years.
Despite being a pioneer of blockchain technology and digital payments, adoption limited to a small number of investors has held back the goal of bitcoin's financial dominance.
Furthermore, the lack of uniform regulation has staggered the adoption of BTC in multiple jurisdictions. And the constant disagreement in the discussion about considering bitcoin a store of value, a medium of exchange, or both has dented its rise.
As a result, the markets have become saturated. The crypto market is now full of bitcoin derivatives, each of which claims to be more beneficial than the others, once again downsizing the revolutionary reach of bitcoin.
Perhaps the most damaging argument of all is that blockchain is a more relevant innovation than bitcoin itself.
In the end, regardless of what analysts say, the relationship between bitcoin and Tesla is negligible at best, and ridiculous at worst.