Elon Musk's Bitcoin investment ripped to piece: 'It could have gone either way!'

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Tesla is sitting on roughly $2.5billion (£1.79bn) worth of Bitcoin, according to a securities filing, giving the company a significant gain on paper only a few months after investing. The automaker said its investment in the cryptocurrency was worth $2.48billion (£1.78bn) at the end of March. The company's CEO Elon Musk announced earlier this year that it had purchased $1.5billion (£1.07bn) worth of Bitcoin and that it was planning to accept the crypto coins as payment for its vehicles.

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At the end of April, Tesla revealed it registered a net gain of $101million (£72m) from sales of Bitcoin during the quarter, helping to boost its net profits to a record high in the first quarter.

Tesla does not account for Bitcoin as a mark-to-market asset, meaning it only recognises an earnings benefit if it sells to lock in the gains.

In an exclusive interview with Express.co.uk, though, Martin Bamford, chartered financial planner at Informed Choice, warned Mr Musk's move could have easily gone either way.

He explained: "[Bitcoin] is not an investment.

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"It is purely speculative and it is something that doesn't have any intrinsic value.

"It's just based on whether or not someone is prepared to pay a higher price for what you owe.

ctp_video, tesla, tesla news, bitcoin, bitcoin news, tesla, tesla news, elon musk, elon musk news, tesla investmentElon Musk's Bitcoin investment torn to shreds: 'It could have gone either way!' (Image: GETTY)

"The problem with Bitcoin is also that it tries to do too many things at once.

"Some people treat it as a store of value, like gold. Others treat it as a currency and others as an investment.

"Unless it picks one function, it is likely to continue with this price volatility going all over the place."

When asked about Tesla's investment in the cryptocurrency, Mr Bamford said: "It is fascinating...

"They made more money from Bitcoin than selling cars.

"But again

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