If you purchase it, they will come...
The biggest part of Tesla getting involved with bitcoin has nothing to do with the dollar amount they invested.
Sure, $1.5 billion is big number and represents about 8% of their total cash position, but it's the precedent that is being set that ultimately really matters.
If this was a one off purchase, sure the price of bitcoin would pop, but it wouldn't have a ton of legs.
Because of what this buy possibly represents, the surge in bitcoin is going to have a ton of legs and go a lot higher than this.
Tesla buying bitcoin and putting it on their balance sheet just gave the green-light to every other tech company or fortune 500 company to do the same thing.
Moves like this need a trailblazer.
While MSTR and Michael Saylor technically blazed the trail, they don't have the clout that Tesla has and Michael Saylor would be the first to admit that:
(Source:
)https://twitter.com/Sonnenshein/status/1358856571711856641/photo/1
- Sonnenshein
The genie is out of the bottle...
We all had an idea that the genie was out of the bottle as it relates to bitcoin, but now it is really out of the bottle.
You can't put bitcoin away at this point.
You have billion dollar companies putting it on their balance sheet in lieu of holding dollars.
While the powers that be won't like that, they can't do much about it now, there is simply too much money involved and too many big players involved.
It turns out that this exchange was as important as many speculated that it was:
(Source:
)https://twitter.com/CryptoLoveChris/status/1358869848546246662/photo/1
- CryptoLoveChris
The interesting thing about TSLA buying bitcoin with 8% of their cash is that they are burning through cash, as opposed to something like MSTR that is generating cash that is simply accumulating.
This must mean that they don't think they are going to blow through all that cash any time soon, though I guess considering that the market paid them to take cash during the last round of fund raising, perhaps it doesn't really matter if they burn through it.
They can just raise more.
For companies like AAPL, GOOG, FB, MSFT, and a whole host of other large tech companies that are sitting on hundreds of billions in cash, making the leap to bitcoin makes a ton of sense.
In fact it makes so much sense that I think several of these will own bitcoin before the year ends.
This move by TSLA was just the beginning, not the middle or end.
If you bought bitcoin prior to today, congrats, you are in before the largest tech companies in the world.
You front ran the billionaires, good on you!
Stay informed my friends.
-Doc