Bitcoin & Tesla: What Everybody Missed in Elon Musk's Announcement

[Hydrogen]

Tesla recently announced their $1.5 billion investment in Bitcoin - but there was something else they mentioned that slipped under the radar. Join Mike Maloney and Jeff Clark as they discuss this stunning event, and what it may mean for gold and silver investors.

https://www.youtube.com/watch?v=RfX2rmmBNwc

Elon Musk liked this on twitter. That must mean its legit?:

https://twitter.com/mike_maloney/status/1359524936042356737

 

....


What everyone missed(?):  "Tesla may invest portion of cash in some alternative reserve assets including digital assets, gold bullion, gold exchange traded funds in future".

Mike Maloney and Jeff Clark combined have decades of experience professionally trading precious metals like gold and silver. One interesting point here is both being in agreement on silver markets being manipulated by short sellers and ETFs. They seem to indicate that ETFs only hold a fraction of the assets they publicize holding, the way fractional reserve banks do. Which is something I was not aware of.

Another interesting point is their description of central bank and federal reserve stimulus injections, into markets, potentially having diminishing returns. Which could foretell a long term effect of the gamestonk effect. If indeed market movements as a result of combined investment effort deplete over time, while inflation and stimulus spending ratchet upwards.

[Darker45]

"Tesla has already taken Bitcoin for cars." Was it really Tesla itself which accepted Bitcoin or just a Tesla dealer? Either way, I'm still amazed that as early as 2012 or 2013, when Bitcoin was mostly unheard of, there was already a transaction like that. I wonder how many latest Tesla models would that amount buy today.

Anyway, Elon getting into Bitcoin, Gold, and so on is no surprise. They're all better options than fiat. Wealth diversified into various stores of value other than the depreciating fiat is expected.

[bitmover]

Mike Maloney and Jeff Clark combined have decades of experience professionally trading precious metals like gold and silver. One interesting point here is both being in agreement on silver markets being manipulated by short sellers and ETFs. They seem to indicate that ETFs only hold a fraction of the assets they publicize holding, the way fractional reserve banks do. Which is something I was not aware of.

This is basically speculation

ETF of precious  metals are often called "paper gold" or "paper silver'. You buy a paper (the ETF) which theoritically is backed up by the gold/silver.. they have audtions and things like that, but you cannot be 100% sure it is really backed up.

This will most likely happen to bitcoin funds (like grayscale and others). We will soon see "paper bitcoin".

But we can Hold  our bitcoins in our wallets, holding the private keys. So we can be safe about that.

[qwertyup23]

"Tesla has already taken Bitcoin for cars." Was it really Tesla itself which accepted Bitcoin or just a Tesla dealer? Either way, I'm still amazed that as early as 2012 or 2013, when Bitcoin was mostly unheard of, there was already a transaction like that. I wonder how many latest Tesla models would that amount buy today.

Anyway, Elon getting into Bitcoin, Gold, and so on is no surprise. They're all better options than fiat. Wealth diversified into various stores of value other than the depreciating fiat is expected.

I do think that investors are starting to realize the exceptional use of the blockchain technology and bitcoin as its digital currency.

Upon the investment made by Elon Musk, the price of bitcoin increased in the market. I also remember that when Elon Musk tweeted about Doge coin, its price significantly increased which alarmed most investors and HODLers of such coin.

With this recent development, I do hope that other businesses will start to integrate bitcoin on their business plan. For the time being, I will definitely HODL my coins and maybe sell them 3-4 years from now. I definitely see the potential of its price increasing again in the near future.

[zanezane]

"Tesla has already taken Bitcoin for cars." Was it really Tesla itself which accepted Bitcoin or just a Tesla dealer? Either way, I'm still amazed that as early as 2012 or 2013, when Bitcoin was mostly unheard of, there was already a transaction like that. I wonder how many latest Tesla models would that amount buy today.

Anyway, Elon getting into Bitcoin, Gold, and so on is no surprise. They're all better options than fiat. Wealth diversified into various stores of value other than the depreciating fiat is expected.

I would love to imagine how the people who bought a Tesla with bitcoin are regretting their decisions, I mean if we are talking about a 3 digit bitcoin price back then and that means that a lot of bitcoin was used to buy those sweet Tesla, if I guess the transaction might have been a third-party dealer. Elon is a businessman after all, he wants to have some hedge for the chances that fiat will collapse following the mismanagement of a lot of government during the pandemic, hopefully no collapse will ever happen because that means that more people are going to suffer.

[beerlover]

I would love to imagine how the people who bought a Tesla with bitcoin are regretting their decisions, I mean if we are talking about a 3 digit bitcoin price back then and that means that a lot of bitcoin was used to buy those sweet Tesla, if I guess the transaction might have been a third-party dealer. Elon is a businessman after all, he wants to have some hedge for the chances that fiat will collapse following the mismanagement of a lot of government during the pandemic, hopefully no collapse will ever happen because that means that more people are going to suffer.

We also had people who bought two large pizzas for 10k bitcoins as well. That 10k bitcoin now worths half a billion dollars, that is no joke, someone who held that 10k instead of buying two pizzas would be in the forbes richest people list, not at the top but he would be somewhere in the top 2000 levels I think, that is really not something anyone can move away from.

Dude talked about having even more bitcoins and spending that too and having a bit more that he kept etc etc but having half a billion dollars versus eating two large pizzas is the real deal here, tesla at least is tesla, when you eat a pizza it is gone, next day you go to toilet and it is gone, tesla at least is a tangible thing, sure a bad investment nevertheless, no doubt about that, but you can show your tesla for decades. So I can't imagine what people like that thinking about right now.

[fiulpro]

See, they won't tell everything about their investments and about the stocks or Cryptos they did invest in since they do want to manipulate market in the long run. What I do see is that Tesla is using all their power and the money to extend the control over various sectors that can help them make money so I do think what people can do right now is.

1. Follow the prices and make sure to invest at a time where their manipulation can become your profit. What I do mean by this is , if you see that they are tweeting high end about let's say "x" . Keep checking the price of x and only invest if their tweets bring some credible results. Do not follow them blindly.

Anyways this is what the big companies do anyway so this is nothing new. Just focus on what you want to achieve in the future. For me it's financial freedom and a way to take my business worldwide so I will go more for cryptocurrencies as compared to such precious metals. It all depends on you.

1. Keep Calm
2. Invest Wisely
3. Use their manipulation!!! For your profit!

[davis196]

Mike Maloney and Jeff Clark combined have decades of experience professionally trading precious metals like gold and silver. One interesting point here is both being in agreement on silver markets being manipulated by short sellers and ETFs. They seem to indicate that ETFs only hold a fraction of the assets they publicize holding, the way fractional reserve banks do. Which is something I was not aware of.

Some people(mostly BTC FUDsters) have been blaming Tether for the same thing.Fractional reserve banking that is artificially boosting the Bitcoin(and altcoin) prices.I don't know if this is true or not.
I wouldn't be surprised if the gold/silver markets are manipulated the same way.

Another interesting point is their description of central bank and federal reserve stimulus injections, into markets, potentially having diminishing returns. Which could foretell a long term effect of the gamestonk effect. If indeed market movements as a result of combined investment effort deplete over time, while inflation and stimulus spending ratchet upwards.

We all know that the endless money printing and financial injections done by the central banks will have a devastating effect over the global economy.There's nothing new to the table.Some stocks are going to be pumped a lot.Every market is more of less manipulated,and the biggest market manipulators are the central banks.

[Obito]

1. Follow the prices and make sure to invest at a time where their manipulation can become your profit. What I do mean by this is , if you see that they are tweeting high end about let's say "x" . Keep checking the price of x and only invest if their tweets bring some credible results. Do not follow them blindly.

3. Use their manipulation!!! For your profit!

This is the best advice there is if you do not want to be involved in the market so much that you lose so much of your time. This is a proven strategy for businesses, they use their popularity to up their prices. The only problem for an outsider is that they don't know when the manipulation happens so they have to be alert on what is happening. There is a reason why Coca Cola still advertises, they have to keep their popularity to have their prices go up.

[magneto]

I don't think that this should necessarily be taken as a bad piece of news.

What is as important as the actual investment is the fact that there is no mainstream accreditation for BTC as a store of value and as a cash alternative. The fact that it is placed against the same category as gold and silver which have been known as as physical stores of value for centuries is what is so significant.

Who cares if the investment into BTC is actually $1b, $500m, or the full $1.5b. It's the legitimisation of BTC as a store of value that should be valued the most out of this event.

[Kittygalore]

I don't think that this should necessarily be taken as a bad piece of news.

What is as important as the actual investment is the fact that there is no mainstream accreditation for BTC as a store of value and as a cash alternative. The fact that it is placed against the same category as gold and silver which have been known as as physical stores of value for centuries is what is so significant.

Who cares if the investment into BTC is actually $1b, $500m, or the full $1.5b. It's the legitimisation of BTC as a store of value that should be valued the most out of this event.

You are right, why dwell on the things that wouldn't benefit bitcoin in the long run. I don't really mind if there is a bad or good news for bitcoin, if there is a balance or a favor on the good news, I am happy, any publicity is a good publicity, if bad news is what gets people talking about it then let them have it, the people that matters knows what is the truth when a bad news happens so I don't worry much about it. The moment that bitcoin is on par with precious metals is a good news already.

[Xavofat]

"Tesla has already taken Bitcoin for cars." Was it really Tesla itself which accepted Bitcoin or just a Tesla dealer? Either way, I'm still amazed that as early as 2012 or 2013, when Bitcoin was mostly unheard of, there was already a transaction like that. I wonder how many latest Tesla models would that amount buy today.

Anyway, Elon getting into Bitcoin, Gold, and so on is no surprise. They're all better options than fiat. Wealth diversified into various stores of value other than the depreciating fiat is expected.

I would love to imagine how the people who bought a Tesla with bitcoin are regretting their decisions, I mean if we are talking about a 3 digit bitcoin price back then and that means that a lot of bitcoin was used to buy those sweet Tesla, if I guess the transaction might have been a third-party dealer. Elon is a businessman after all, he wants to have some hedge for the chances that fiat will collapse following the mismanagement of a lot of government during the pandemic, hopefully no collapse will ever happen because that means that more people are going to suffer.

It's no different to someone exchanging Bitcoin to their local currency directly.  I think the best aspect of Tesla potentially accepting Bitcoin for cars is that unlike most other companies, Tesla might actually HODL the Bitcoin they're sent as Musk seems so enthusiastic about it.  That'll keep the price high, so speculators and genuine Bitcoin technology enthusiasts alike will be delighted by it.

Who cares if the investment into BTC is actually $1b, $500m, or the full $1.5b. It's the legitimisation of BTC as a store of value that should be valued the most out of this event.

I agree! People have made so much investment into BTC now that some companies are starting to treat it as a store of value.  As far as I'm concerned that's a good thing.  It'll just push along Bitcoin's use as a currency once the technology is there to scale up transactions.