Tesla Invests $1.5b into Bitcoin - Plans to Start Accepting It as Payment

The moment everyone in the crypto space has been waiting for, including me. This is absolutely massive news, can't stress this enough. Investing in BTC is one thing but accepting it as a form of payment is huge.

BTC will be at 50k before you know it. Congrats to all hodlers. Game theory is now on. The upside from here is huge. Will continue to DCA. Doesn't change my plans. Anyone else?

https://techcrunch.com/2021/02/08/tesla-buys-1-5b-in-bitcoin...

Tesla announced Monday it has bought $1.5 billion worth of bitcoin.

In a filing with the Securities and Exchange Commission, the company said it bought the bitcoin for “more flexibility to further diversify and maximize returns on our cash.” Tesla also said it will start accepting payments in bitcoin in exchange for its products. That would make Tesla the first major automaker to accept do so.

The moves raised immediate questions around CEO Elon Musk’s behavior on Twitter recent weeks, where he has been credited for increasing the prices of cryptocurrencies like bitcoin and dogecoin by posting positive messages that have encouraged more people to buy the digital currencies.

Two weeks ago, the billionaire Tesla owned added the hashtag #bitcoin to his Twitter bio, in a move that helped to briefly push up the price of the cryptocurrency by as much as 20%. Two days later, he said on the social medial chat site Clubhouse: “I do at this point think bitcoin is a good thing, and I am a supporter of bitcoin.”

Bitcoin prices surged to new highs Monday following Tesla’s announcement, reaching a price of at least $44,200. Tesla shares were up more than 2.5% in premarket trading. Tesla warned investors of the volatility of bitcoin’s price in its SEC filing.

Tesla’s move into bitcoin represents an investment of a significant percentage of its cash in the investment. The company had more than $19 billion in cash and cash equivalents on hand at the end of 2020, according to its most recent filing.

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Comments

                  • @whooah1979: Funny you say that. Musk built X.com that was acquired by PayPal.

  • Warning signs ahead when everyone is piling in under the spell of a "new paradigm". 20 years ago Dot.com (eyeballs matter not profits), 30 years ago the Japanese property asset bubble ( money doesn't matter, only assets). Today its Elon/Tesla and bitcoin. It will end when there is maximum pain to the maximum number of investors. This is irrational exuberance in real-time dialled to 11.

    • its been a bubble for 12 years. in next few years or decade when it goes to a million dollars.

      your kid will ask you what were you doing when bitcoin went from 0.1 to 1 to 10 to 1000 to 10000 to 50000 to 100000?

      your reply : I dont know kid but i remember calling it a bubble at $60k.

      • Why didn't you buy Japanese property in 1986? why didn't you buy .com in 1996 or Apple when jobs returned or short subprimes in 2008?
        You tell yourself a 1/2 true story, you see something that has a future and has real value like Japanese real estate or internet stocks, but like all cases of irrational exuberance, don't tell yourself stories manufactured which allow for detachment from the cold hard laws of economics (human behaviour).

        I just moved from all stock to all cash and I will keep that for at least a year, except for my long term "never sell" property holdings. Will sleep well knowing I can buy my kids a modest house each when they settle down and drive my Tesla (and future Tesla's) between a couple of modest homes whilst living modestly on my dullish investments.

        • +1

          The purchasing power of your cash is guaranteed to go down. Good luck with that.

          • @DisabledUser382733: Correct short term ie 1-year losses vis-a-vis getting less than 1% interest vs modest inflation will be a small loss. Obviously am a risk-averse person. Moved from all cash to all stocks in late March 2020 during the Covid panic, so it would take a decade to lose last years gains sitting on cash.

            For those who are younger than me personally would recommend people take some risks, I regret not starting my business until was in my late 40's, should have done it when was in my late 30's, but mortgage, private school fees kept me very much rusted onto my job.

            • @sockpuppy: Depends on how you calculate inflation. if you trust RBA that it is below 2% per annum then why have to property prices risen so much? How much does it cost for private school education now compared to a decade ago? How much dinner at restaurant cost compare to a decade ago?

              Its much more than 2% per annum. If CPI is calculated by measuring steak dinner in 1980 and a mac donald happy meal in 2020 then you will manage to get it below 2% inflation. You cant win when the game is rigged.

              Why have the stock rallied despite of low economic activity during the pandemic. Its just caused by reckless money printing which has resulted in inflation and the ones benefiting from it are ones who are the cantillonaires closes to the money spigot.

              I understand you want to play it safe and not take risks at this stage. But Bitcoin is peoples money not controlled by anyone. Better than Gold and predictable due to its math. You dont need to buy a 60k bitcoin all you need is put few dollars on a regular basis. as it is most likely to go up over time compared to other assets which are controlled by humans. Although nothing is guaranteed. Now the richest person has put his money into it over 50k. At some point people must admit they are wrong and adopt the change. There is no stopping it. I would recommend go to hope .com and just listen to Michael Saylor explain it, just spend a little bit of your time it will be worth you while. Make a decision after that.

              Good luck to you and your family and wish you a successful life. Cheers.

              • @DisabledUser382733: "Depends on how you calculate inflation. if you trust RBA that it is below 2% per annum then why have to property prices risen so much?"
                Real estate is simply more affordable due to lower interest rates and more desirable to have land with bricks and mortar.

                "It's just caused by reckless money printing which has resulted in inflation and the ones benefiting from it are ones who are the cantillonaires closes to the money spigot."

                Agreed that is why I moved my shares to all cash.

                " Bitcoin is peoples money not controlled by anyone…. it is most likely to go up over time compared to other assets which are controlled by humans. "

                It is a human invention, its value is only that which humans place on it.

                Look like .com and Japanese real estate bubbles of the past , they are founded on real logic that cannot be disputed. Tokyo didn't have enough real estate; .com on the fact the internet was about change commerce forever.

                Bitcoin and other blockchain currencies will have a place in the future a dependable "store" of borderless value and exchange. However currently its a feeding frenzy and as soon as the dog whistle blows and there is nobody left to pile into them, wait for the fear factor to hit. Elon doesnt give a rats, he is richer than god and $1.5Billion is like me buying a $70 steak.

                • @sockpuppy: It won't happen. 100k this year.

    • +1

      Who doesn't like a good bubble pop? Bring it on so that people may reload for the next leg up.

  • +1

    Who will be next?
    https://nimb.ws/UmD8ir

  • Fads have a way to become permanent.

    https://apple.news/ADVj6vudyQ3m_-B5k0Av47g

    Back in the ‘95, they weren’t very many people on the Internet. And certainly nobody was making any money at all. Most people thought the Internet was going to be a fad. E.M

  • Do they accept it as payment yet?

  • +1

    Just revisiting this now, Elon stopped the BTC payment nonsense on environmental grounds.

    Wondering how the BTC mob is feeling now? Happy on the rollercoaster? Still going to $100K by Xmas or will it be $10K ( or $1K ) ? Pretty soon the media will be printing stories of "I bet everything on BTC and lost."
    Still, thinking you will be able to buy a Plaid Model S with a single coin?

    Yes crypto will have a future once the greed-fueled feeding freezy stops and it can be a reliable >store< of value and exchange across international borders.

  • On-chain data shows that the short term speculators that sold during the dip did it at a loss. The data also shows that the BTC that was sold was bought up by long term hodlers and whales.

    This market is working as it's supposed to by punishing the impatient and rewarding the patient. The people that sold will buy it back at a higher price either directly or indirectly using a fund.

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