Bitcoin for Tesla’s

Why Tesla bought $1.5 billion in BTC

David H. McGuire

--

It was two weeks ago Tesla announced that it would allow BTC to be used to buy their products, whilst buying $1.5 billion in BTC. An interesting time as BTC broke through new heights in its valuation vis-à-vis dollars. It left everyone considering why, well it all makes sense. It is Tesla entertaining the idea that BTC is a potential financial lubricant for its international success, not only because the BTC in China will be as good as the BTC spent in New Zealand with Tesla, but the ability to circumvent the legalities of corporate tax that shrouds the sales and cash flows that loom around Fiat currencies.

In an age of new technology, Tesla is considering the potential to think laterally about not just its payment methods, but the fact that if Tesla is planning to stick around for 10 or 20 more years (plus) that by nature of economies of scale and adoption BTC is undervalued, so Tesla can hold on to purchased BTC of vehicles bought in 2021 and they wouldn't necessarily need to cash in for the next 10 years. The $1.5 billion isn’t only an investment but a float to ensure that they cover the market that would adopt the BTC payment model.

Tesla is proving it is thinking in the next 10 years from now whilst other car manufacturers are playing catchup. The understanding that in the next 10 years the whole dynamic of work, finance, and economics will be typified by a generation that is currently still in school or college that are yet to make an entrance to a real solid career. With the infamous WallStreetBets subreddit breeding a generation of financial activists who may in some sense not be cash-rich per se, but Crypto asset-rich - we see a wider framed popularisation of the democratisation of asset pooling and uptake of Cryptocurrencies as a means of exchange.

Photo by André François McKenzie on Unsplash

--

--