What does Tesla buying Bitcoin mean for its future?

Tesla makes sizeable investment into Bitcoin

8th February 2021 — I woke up just like every other day and reached for my phone to scroll through Twitter. The first news that popped up was Tesla released their earnings report for the year. Awesome. So I download the fairly large PDF file while I make coffee and sit down for a quick read. As a TSLA shareholder, I’m quite interested in knowing how my (very humble) investment is being spent.

That’s when something struck my eye; a cryptocurrency purchase for $1.5B. I had to take a second look just to make sure. Elon actually did it, he went ahead and bought a whole lot of Bitcoins. Now that’s what we in the industry call a “pro gamer move”.

SEC filing excerpt detailing Tesla’s investment into Bitcoin

I immediately log back on to Twitter to see how the stock market gurus and the crypto mavericks are responding to the news. As expected, it was chaotic! Everyone had their own hypotheses and theories of why Elon made this move. Some people were translating this investment as the strongest sell signal for TSLA and the other side saw this as the strongest buy signal for BTC. Regardless, I was sure of one thing; Bitcoin was about to soar to the moon.

Additionally, Tesla has also confirmed that they are considering Bitcoin as a form of payment for their products.

But what really is the result of such a historic move by Tesla? It’s easy — Destigmatization. Tesla essentially brought corporate investment into cryptocurrencies out into the mainstream. I can already see it in the next shareholder meeting, the investors are going to ask their CFOs “how come we didn’t make an investment in Bitcoin?” or “I think we too should seriously consider buying some Bitcoin”. That’s really good news because decentralized currency should be the future.

As soon as this news hit the mainstream, media went on a frenzy trying to get quotes from other CEOs and CFOs to see if they too were considering a corporate investment into Bitcoin. Uber’s CEO Dara Khosrowshahi told Business Insider that the company is open to consider Bitcoin as an acceptable form of payment. Similarly, Jack Dorsey, CEO of Twitter stated that they too are considering making a purchase of Bitcoins. Along with their announcement that Twitter might add a “tipping” option for Twitter users, this could be a decision that works in perfect synergy. Conglomerate billionaire Grupo Salinas added #Bitcoin to his twitter bio as well as a subtle nod to the 10% of his wealth he has invested in Bitcoin.

Twitter considers purchasing Bitcoins

We see fundamental reasons to believe that — regardless of where the price of bitcoin goes next — cryptocurrencies are here to stay as a serious asset class.” — Chief Global Strategist, Morgan Stanley

And that’s a mic drop statement for all people that were hesitant on investing in Bitcoin or saw it as a form of currency that wasn’t going anywhere. It’s here and it’s here to stay.

--

--

--

Philosophy | Theology | Politics

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

[Weekly] Market Return on StableCoin-based Strategies (29 March 2021)

Questions & Answers from our AMA (Pt. II)

Enjoy Life — a complete solution on the blockchain

ShopNEXT AMA Recap

Imagine If Full Nodes Actually Controlled Bitcoin

Launch a Decentralized City Builder DApp Game like Megacryptopolis

The Full Node Religion Will Fail (Or Why Lighthouses are Better Than Tiki Torches)

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Aashiq Kabeer

Aashiq Kabeer

Philosophy | Theology | Politics

More from Medium

The First Truflation Index Update

How weak are the biggest crypto currencies?

Fed Chair Raises Interest Rates 0.25%

Is The Bitcoin Bear Market Overhyped? It Could Be

Is Bitcoin in a Bear Market or just treading water? — Photo by Marco Verch Professional Photographer — https://foto.wuestenigel.com/bitcoin-bear-market/