What is the best buy in 2023?

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Bitcoin price surpassed Tesla in 2022.

Both assets faced many challenges during the year.

Bitcoin looks like a better investment in 2023.

Bitcoin price has had a terrible performance in 2022. It crashed 64% this year, making it one of its worst years on record. Tesla does much worse. Down 74% in 2022, the company is having its worst year and worst quarter. Bitcoin’s market capitalization crashed to around $320 billion while Tesla fell from over $1 trillion to around $344 billion.

Bitcoin against Tesla

Tesla and Bitcoin are two very different financial assets. Bitcoin is a cryptocurrency that wants to replace fiat currencies while Tesla is an automotive disruptor that wants to end internal combustion engines (ICEs).

Still, the two assets have a lot of similarities. They are both disruptors in their respective industries and have huge followings internationally. Elon Musk loves both assets.

Moreover, they are both emblematic of what happens when interest rates stay low for so long. After the Global Financial Crisis (GFC), central banks, led by the Federal Reserve, adopted an easy money policy in an effort to support the economy. But rates stayed so low for so long, leading to an era of irrational exuberance, as we write about here.

Another similarity between Bitcoin and Tesla is that they both face significant competition. There are now over 20,000 cryptocurrencies looking to dethrone BTC. Likewise, the number of EV startups is increasing remarkably, with most traditional EV companies shifting to the EV model.

Why BTC and Tesla collapsed

Bitcoin price crashed due to high interest rates and challenges in the crypto industry. The biggest scandals in the industry have been the collapse of Terra, which helped fuel the bankruptcy of Voyager Digital, FTX and Celsius.

Tesla, on the other hand, faces serious competition as its CEO has been unsettled by its takeover of Twitter. Analysts believe his divided attention played a significant role in the collapse of his net worth of more than $120 billion.

Additionally, Tesla faces significant competition as demand for its cars has fallen significantly in recent months. Soaring inflation has caused car sales to plummet.

Better buy between TSLA and BTC in 2023

So what is the best buy between Tesla and Bitcoin in 2023? As the economy faces a triple whammy of high interest rates, slow growth and high inflation, both are likely to struggle in 2023. However, due to valuation measures and from market share, I think Bitcoin is a better investment than Tesla.

As Tesla transitions from a growth company to a value stock, its price will need to be much lower. On the one hand, companies like General Motors and Ford are valued at less than $50 billion. Bitcoin, on the other hand, has proven to be a market leader in its industry despite heavy competition.

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