(Last Updated on February 8, 2021)
TLDR: Yes, they did buy Bitcoin. $TSLA adopts $1.5 billion worth of the digital asset Bitcoin. Job well done Elon!
Tesla purchase $1.5 billion in Bitcoin as new treasury reserve asset strategy – February 8th, 2021
I sure hoped so!
But really, we have seen Elon tweet about Doge and Bitcoin for years now without any actual commitment to cryptocurrencies outside of memes and jokes.
Things are escalating quickly, what started with jokes and slander against other elites is now evolving into the monetary change that we want.
Elon updates his Twitter profile with one word only – “#Bitcoin”
January 29th, 2021 Update – Elon adds #Bitcoin to his Twitter Profile.
So what lead to his profile update and possible announcement for $TSLA?
It all started with random crypto jokes here and there.. He’s claimed he’s the past CEO of DogeCoin and uses Bitcoin as his safe word.
As of late he’s been starting to get a bit more serious and regularly engaging with “Bitcoin Maximalists” through his favorite social media – Twitter.
Let’s start with his tweets to Michael Saylor regarding if institutions are really capable of easily buying large portions of Bitcoin.
Elon is becoming a little more entrenched with the economists battling online and taking aim at “fiat money” in both theories and discussions randomly.
The following statement struck me as a good look into what Elon is brainstorming. He’s been vocal about recognizing the major faults and issues we have in our current monetary policies but has not been vocal about a solution or how to change policy.
The thing we call money is just an information system for labor allocation.
What actually matters is making goods & providing services.
We should look at currencies from an information theory standpoint.
Whichever has least error & latency will win.– Elon Musk tweet 01.14.21
He makes a reference to needing to look at currencies from an “information theory standpoint”.
Information theory has a background in electrical communication.
Information theory includes theories around communication of energy in regards to entropy and thermodynamics.
You know what else is built completely on energy and is the only monetary unit utilizing thermodynamics to secure it?
The latest tweets are at least showing he is getting a bit more involved, either politically or in business, with our monetary policy discussion.
Will that lead to an actual investment and commitment to Bitcoin?
Only time will tell but..
Tesla has a massive cash liability sitting on their balance sheet.
Tesla is currently sitting on LARGE cash reserves – which they have been growing at a rediculous rate year after year.
Taking a quick look on Market Watch – you can clearly see that dirty U.S. fiat currency quickly building up in $TSLA reserves.
What will Elon do with that cash to grow and profit further?
How will $TSLA avoid inflation and purchasing power loss if they continue to hold massive amounts of cash without employing it?
More the Federal Reserve prints = more pressure on public corporations to take action against a growing liability of cash on their balance sheets
This is a question that Michael Saylor and other public company leaders have been forced to start looking at due to the exponentially rising levels of debt and monetary inflation through the Federal Reserve. COVID-19 has certainly accelerated this further and it is happening so quickly that these companies are being caught off guard with very few opportunities available.
Dive into gold? A stale and heavily evolved industry that controls it today.
Bonds and other traditional safe havens have been obliterated by quantitative easing and these silly Federal buying programs that continue at a pace of hundreds of billions of dollars per month.
Emerging markets? They are all suffering similar economic disasters and frightful central bank climates. Who would want to dive into that?
Real estate? Maintenance, tenant hassles, property taxes, and not too mention the damaged done to the real estate market – both commercial and residential from COVID and unpaid rents, mortgages, and so forth that are coming.
Bitcoin offers something unique.
Now at an almost $800 billion dollar market cap and 12 years of proof.
Has been declared “dead” and “worthless” a million times by the ignorant, yet it’s exponential growth and conversion of “bitcoin believers” grows as individuals see the economic damage done by money printing and central banks policies.
If Elon Musk jumps on board?
This rocket ship is gonna fly!!
He is a massive leader of innovation, tech, and holds the attention of our youth right now with Tesla and SpaceX fans everywhere. Companies will dive in behind him chasing the flood of public companies soon to hold Bitcoin as their newest treasure asset.
The race to Bitcoin becoming a $5 TRILLION dollar asset will be a matter of how long it takes traditional finance dependent or tech reluctant companies to vote and pass policy.
What do we know about Elon and Bitcoin currently?
-> He owns a small portion, “not even 1 coin” he claims
-> Loves the idea and belief but no clue if it’ll ever go mainstream
-> Has been tweeting A LOT more about money
Why was Elon Musk the CEO of Dogecoin?
-> Super nerd and declared by the Doge community
-> Elon is a Meme master and DogeCoin is a SHIBA INU DOG MEME cryptocurrency that GPU miners got rich off pumping in 2017
-> Huge anime fan and memes about it regularly