Tesla buys $1.5 billion in bitcoin, plans to accept it as payment
Tesla with Elon Musk has bought 1.5 billion dollars worth of Bitcoin and this is what will happen, next guys!
Key points:
- Tesla announced in an SEC filing Monday that it has bought $1.5 billion worth of bitcoin.
- The company also said it would start accepting bitcoin as a payment method for its products.
- CEO Elon Musk has been credited for raising the prices of cryptocurrencies, including bitcoin, through his messages on Twitter.
This is what will happen next. Let me show you with this video: First, someone needs to stand out, alone and do something that makes him look like a complete idiot.
The news today is big, it’s very big. In fact, what we’ve got going on right now could turn out to be one of the biggest things to happen to Bitcoin in all of 2021. And in my opinion maybe ever?👀Elon Musk’s company, Tesla, the iconic manufacturer of electric cars, has bought $1.5 billion worth of Bitcoin according to a filing with the Securities and Exchange Commission.
Take a moment to let that sink in. After Apple, Facebook and Google, Tesla is one of the most recognized corporate names in the world. Led by charismatic CEO Elon Musk, Tesla single-handedly made electric cars cool. The very fact that large manufacturers like Mercedes and General Motors are building electric vehicles today is due in large part to the revolution that Elon started. A revolution starter, that’s a good word to describe Elon.
In case you haven’t been on YouTube anytime in the last ten years, besides kick-starting the electric vehicle industry, Elon built SpaceX from the ground up. You know those ultra-cool rockets that come down from space and land on a little yellow X the size of a card table?
Yeah, that’s Elon. The rapid rise of Tesla’s stock price has propelled Musk to the top of the capitalist leaderboards where he now reigns as the world’s richest man. Money hasn’t dulled Musk’s sense of humour though, as one of his favourite pastimes is promoting
Dogecoin on Twitter to his 44 million followers. That’s all fine and good, and Musk has definitely sent Doge on an epic run, but at some point, it’s time to get real. When we’re talking about the big bucks there’s only one digital asset worth considering and that’s Bitcoin.
Here’s what we know so far…Tesla has bought $1.5 billion worth of BTC to put on their balance sheet. The deal is done, the coins are delivered and we can all stop wondering why this recent dip was so short.
Why didn’t BTC go down further and stay there longer?
Because Tesla was buying the dip! We also know that Tesla is planning to accept Bitcoin payments. The SEC filing doesn’t say when they’ll start taking Bitcoin but hopefully, it shouldn’t be too long from now. If Tesla can hold Bitcoin they’re probably not far from developing the payment rails they need to accept BTC from customers. The SEC filing also states that Tesla may purchase more digital assets in the future, although there is no mention of any specific plan to do so. But there’s more going on behind the scenes here, let’s go into it…
If you’ve been in Bitcoin for a while you’ve definitely heard of Michael Saylor and the company he is the CEO of, MicroStrategy.Since MicroStrategy’s initial Bitcoin purchase, Michael Saylor has become one of the world’s biggest Bitcoin advocates.
He’s gone on dozens of podcasts to explain why he believes Bitcoin is the world’s most valuable asset. More recently, Saylor hosted the “Bitcoin for Corporations” event. The virtual conference included talks from a number of Bitcoin advocates but, perhaps more importantly,
Michael Saylor explained how he was able to put BTC on MicroStrategy’s balance sheet. For a retail investor like you or me, buying Bitcoin is pretty simple. Sign up on Coinbase, go through KYC and away you go. But for a corporation, it’s not that simple. The regulatory and legal hurdles can be pretty epic so it was super cool to see Micahel Saylor explaining the process to other CEOs and corporate treasurers.
Based on the timing it seems unlikely that the conference was responsible for Tesla buying Bitcoin. This purchase is probably something that Tesla has been working on for months. The conference, combined with Tesla’s lavish purchase, has got to be forcing hundreds if not thousands of other companies to take Bitcoin seriously. Government debt is at nearly unprecedented levels and yet the government is continuing to spend like it’s going out of style.
Since there’s not enough tax revenue coming in it’s the central banks who are picking up the tab and when that happens it’s just about a one-way street to inflation. In other words, a dollar that is losing value day by day.MicroStrategy bought Bitcoin to protect the purchasing power of its cash reserves. Tesla is doing the same.
Both of these successful companies have assets they don’t want to be inflated away. Other companies take note, this is happening and it’s happening fast. Tesla is not the first and it won’t be the last. In the hours following the news, Bitcoin went up to $5,000 and this movement is only just getting started. Elon Musk is followed on Twitter by 1 out of every 9 Americans, and it’s not as though social media is the only place he has a voice.
This news is going to spread faster than anything we’ve seen before.PayPal, Square, Druckenmiller, MicroStrategy, and others are just the beginning of institutional money flooding into bitcoin. Tesla may have just burst through those gates like a tidal wave - making more companies likely to put Bitcoin on their corporate balance sheets. Bitcoin has reached a new era of corporate adoption. Who’s next?
He also needs to be pretty easy to follow. This is the turning point, the first follower. The leader welcomes him as equal to himself. Being #2, the first follower takes as many guts as being the leader.
If they fail, they will be ridiculed. Now comes the 2nd follower. Three is already plenty. Look how the leader showcases the followers. That is important because new followers will copy the follower. Here is where most people will see the best risk-reward to enter. They don’t risk looking ridiculous if fail.
But they will be celebrated as being early if it succeeds. So many hesitating before will join now. Now the last phase starts.
Now people will be ridiculed for not joined instead. So now the same people who didn’t want to join 1 minute ago, are now jumping over each other to join, elbowing forward to not be last. This is what will happen with Bitcoin
MicroStrategy with CEO Michael Saylor was first.MicroStrategy purchased over 71,000 Bitcoin for 1.1 billion dollars, which is now then worth:3 billion dollars. And he has been doing this over some time, since July last year. He bought here, he bought here, here, he bought the dip.
And now Tesla is #2, the first follower and what a first follower to get! Elon Musk is the probably most influential person in the world in all of the technology. Here we have the annual report filing from Tesla. I dunno if SEC maybe could get a new layout person."...we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term.
Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future" Ok, let’s look at the charts!
We are now once again beyond any chart analysis. We are in price discovery mode. Consolidation is over. Price broke out above all-time high.
There are many ways to draw this, but it's very clear that we are now in another parabolic phase. On a short time frame, I mean if we look at hourly candles, this pump here today might very well retrace like it did last time.
Volatility will continue to be crazy high, but I have never, never been more bullish on this whole industry after what happened today. We are witnessing the world change in front of our eyes. First communication with communication systems became global. Then information with the Internet became global. Now money is becoming global with these global decentralized cryptocurrency systems.
And I emphasize global systems here. Regulators and politicians are country local. They are losing power here. They are losing power to globalism, and they don’t like it. I am certain that we will see a lot of push back from regulators, but having been part of global tech trends before, I don't think that this can be stopped at this point.
So specifically about these corporations now. I've been part of corporate myself. Corporations have a lot of money. They have a lot of money. The 1st one, MicroStrategy with Michael Saylorand then came to the 1st follower with Tesla with Elon Musk and
I can almost assure you what will happen. Now the 3rd guy will come and then there will be an elbowing match to try to get in here and not be ridiculed for being too late. So guys, strap in. It will be volatile, there will be pushback, but this is looking more exciting than ever and I must say I feel a little smug today because so many people have called me an idiot over the past years and today feels pretty good. So the lesson from this.
Do take the time to educate yourself. That’s the best advice I can ever give to anyone. Please like, follow and bell for more insights into tech stocks, cryptocurrencies and financial education. Thank You!
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