…hard facts, not cherry-picked news.
Cristiano Ronaldo, the richest and most famous athlete in the world right now, removed two(2) Coco-Cola bottles from his desk in a press conference on 4th June, 2021. This move, as reported by very reputed news agencies, allegedly caused Coke’s stock to dip from $56.16 to $55.55 over the day, resulting in a $4B erosion in its market cap.
But were these 2 events linked, or was this a simple case of correlation but not causation? A little inspection proves it to be the latter. Ronaldo’s press conference and the bottle removal happened at 3:45pm Central European Time, which is 9:45am in New York, where the stock is traded.
The interesting thing is that by 9:4 5am, the stock had already fallen to $56.16. Coke had already lost $4B before Ronaldo even started.
In fact, the stock actually rose after the press conference, from $55.25 to $55.55 at the day close. This added $1.3B in valuation to the company. Another important fact is that Coca-cola distributed its dividends on 14th June, 2021, and stocks generally fall after the dividend payout, as is evident from the one week chart.
In a world where tweets can influence crypto prices, it’s easy to believe that the same could happen for established stock. But always believe in hard facts, not cherry-picked news.
TESLA & BITCOIN
Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially Coal, which has the worst emissions of any fuel.
Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment.
Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transactions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.