Tesla Bought 1.5 B in Bitcoins

[SquallLeonhart]

I do not see this as a "good thing" in the short term. It is of course great that companies are getting into crypto, that is something we should encourage and by the looks of it their 1.5 billion dollars nearly became 2 billion dollars or about to if this rise continues.

However it is not a good thing in the short term because it pumps the price up, not with just the purchase because let's be honest 1.5 billion dollars increases bitcoin only a bit whereas we had a huge increase which means people who heard the news bought even more than 1.5 billion dollars, the price went up because of the news not the act itself. Which means we could be overvalued right now, and that is why I think it is really not that great for short term.

But, it is a great thing for the long term since these guys will not sell right away, they will probably keep it in bitcoin and holders are always great for long term.

[ChiBitCTy]

Good reason for pump and nothing more as for me. Im sure, that was the point of this purchase for tesla

Tesla also plans to accept bitcoin as payment method and that's for sure gonna increase the mass adoption and if tesla just bought 1.5 Billion dollar worth of bitcoin don't you think it will trigger other large corporations to atleast adopt bitcoin to their payment method aswell? it also could acts as a foundation for bitcoin so the price won't go below $20K.

It is impossible now for bitcoin to go below that price. $30k is only the lowest it can go for me and that would already be considered a big crash, many people will surely buy this time.

There's now a rumor that Apple will also invest in bitcoin but they have not confirmed it yet. If this happens, it will definitely drive bitcoin's price to $50k easily.

https://www.zerohedge.com/commodities/apple-about-announce-5-billion-bitcoin-purchase-one-bank-thinks-so?

What do you mean exactly by $30k is the lowest it can go for you?  To say that bitcoin can't fall below 20-30k is simply not true. 

Certainly huge news for both bitcoin and telsa.  We should have seen the writing on the wall when Elon tweeted " In hindsight it was inevitable" as well as when he put the bitcoin symbol in his twitter profile.  Good things to come, as Michael said, if Tesla buys in, many other big firms will follow suite and that's exactly what I expect to start happening slowly but surely.

[The Sceptical Chymist]

TSLA actually adopted the Microstrategy playbook in full. They are converting to Bitcoin part of their Treasury:

Huh.  That really makes me wonder if other big companies are going to be following in their steps--and one thing's for sure, the more bitcoin that gets purchased outright and held by corporations, the higher the price is going to go.  I even get the feeling that it wouldn't be "bubble growth" either, but something sustainable.

Which means we could be overvalued right now, and that is why I think it is really not that great for short term.

You could be completely correct, but there's no way of knowing (obviously).  If you're a short-term trader, I'd think there's a pretty obvious trend that could be followed that might make you a decent profit, as long as you get out in time.  Very interesting times for bitcoin these are.

[Karartma1]

I do not see this as a "good thing" in the short term. It is of course great that companies are getting into crypto, that is something we should encourage and by the looks of it their 1.5 billion dollars nearly became 2 billion dollars or about to if this rise continues.

However it is not a good thing in the short term because it pumps the price up, not with just the purchase because let's be honest 1.5 billion dollars increases bitcoin only a bit whereas we had a huge increase which means people who heard the news bought even more than 1.5 billion dollars, the price went up because of the news not the act itself. Which means we could be overvalued right now, and that is why I think it is really not that great for short term.

But, it is a great thing for the long term since these guys will not sell right away, they will probably keep it in bitcoin and holders are always great for long term.

Supply & Demand at its finest: the more that buy the higher the price will go. If that keeps building, while hodlers become an invisible majority, nobody will sell at a discount. Today is already long term SquallLeonhart, I was waiting for a day like today since the darkest crypto winter days of 2014-5.
Enjoy the ride  

[lixer]

After such information, all mainstream media will start talking about Bitcoin. In such a situation, I think the next resistance is at $100k rather than $60k. 

Indeed and someone unknown might buy that amount but it won't create the similar affect on the market as one of the richest man and Tesla buying Bitcoins because everyone knows and follow their moves. I also read some articles and found that they are going to accept Bitcoins as a means of payment for their company, not sure if that is just hoax or some solidity behind that news. Anyway among the bull run, this tesla news acted like another catalyst to boost prices to trade near $50k and now we can be sure about $100 by next quarter of this year.

Being a fellow bitcoiner, I need to thank tesla for doing so; because I am confident about at least 10 such big concerns will think about and copy that.

[Dabs]

Tesla is a public company. There are rules. Elon, despite being the CEO and head of it, can not make the company do something if the rest of the board does not agree with it. People are getting confused about what public companies can or can not do and what their officers can or can not say in public.

They make the wrong tweet, the SEC will fine them 20 million dollars. That happened.

Now, the SEC has a new head who is supposedly crypto and bitcoin friendly. That's good news overall.

So for ETFs, that's good, even though we've had lots of similar instruments already such as Grayscale, QBTC, and some others.


You can ignore Peter Schiff, he's just noise. Always has been.

[Silberman]

I do not see this as a "good thing" in the short term. It is of course great that companies are getting into crypto, that is something we should encourage and by the looks of it their 1.5 billion dollars nearly became 2 billion dollars or about to if this rise continues.

However it is not a good thing in the short term because it pumps the price up, not with just the purchase because let's be honest 1.5 billion dollars increases bitcoin only a bit whereas we had a huge increase which means people who heard the news bought even more than 1.5 billion dollars, the price went up because of the news not the act itself. Which means we could be overvalued right now, and that is why I think it is really not that great for short term.

But, it is a great thing for the long term since these guys will not sell right away, they will probably keep it in bitcoin and holders are always great for long term.

In a way I think you're right, they are announcing something that already happened so the movement in the price that we are seeing has nothing to do with the act itself of buying bitcoin but with the speculation this news brings, however we must not be so negative about this, it is important that those people that say that they like the concept of bitcoin are finally putting their money where their mouth is, and if this continues then the price of bitcoin will keep increasing as there is simply not enough supply to meet the demand.

[kram31]

This might be one of the reason why suddenly Bitcoin price kicked its price in the market.
I couldn't imagine now that we are road to 50k$ each Bitcoin, and that is closed to happen by now.
Remember, that recently when Dogecoin pumped its price, Bitcoin was also all of a sudden pumped its
price too, So I'm so excited what will happen next now into bitcoin.

[fillippone]

TSLA actually adopted the Microstrategy playbook in full. They are converting to Bitcoin part of their Treasury:

Huh.  That really makes me wonder if other big companies are going to be following in their steps--and one thing's for sure, the more bitcoin that gets purchased outright and held by corporations, the higher the price is going to go.  I even get the feeling that it wouldn't be "bubble growth" either, but something sustainable.

This is the most important part of the whole story.
As I said elsewhere, there will be a snowball effect on every CFO. as the more CFO invest in BTC; the bigger the pressure on others to do the same, as it will be harder and harder to justify to the Stakeholders why you are not invested in BTC.
Given the asymmetric return, and the minuscule volatility contribution, I see CFO really seriously considering getting long bitcoin for a share of their assets.

[muenze]

This is the most important part of the whole story.
As I said elsewhere, there will be a snowball effect on every CFO. as the more CFO invest in BTC; the bigger the pressure on others to do the same, as it will be harder and harder to justify to the Stakeholders why you are not invested in BTC.
Given the asymmetric return, and the minuscule volatility contribution, I see CFO really seriously considering getting long bitcoin for a share of their assets.

A lot of people have said that tho. Me included. Its not rocket science.

The real important part of the whole story, which most people just prefer to ignore.

Is that Tesla and all the other big players buy bitcoin OFF EXCHANGES so their purchases do not influence price at all. Except for the free PR they create. They speculate on consumers driving the price up.

I mean. In a way that is cheating. Right?

What does this mean for the future and a new crash that could happen in the near future or maybe in 2022 or maybe in 2023?

People prefer to avoid the difficult questions.

[amishmanish]

The real important part of the whole story, which most people just prefer to ignore.

Is that Tesla and all the other big players buy bitcoin OFF EXCHANGES so their purchases do not influence price at all. Except for the free PR they create. They speculate on consumers driving the price up.

OTC trading is not new for financial markets. Much of the huge buy/ sells in stocks that comprise changes in shareholding patterns take place in the form of OTC deals. There are deals between two parties facilitated by a broker.
The party buying the BTC has to find the right dealer while the broker has to ensure that they can deliver those BTC. If someone bought 10,000 BTC, It wouldn't be just one person. It'll be a combination of sources. The news do get out and eventually every big buyer will pay a higher price.

I mean. In a way that is cheating. Right?

Is the difference between retail prices and wholesale prices cheating? Consider this, As part of an organization, I procured a machinery lubricant from a German company in bulk. The price i paid was almost one-third of the price printed on the package (which a retailer buying it for, say, their car would pay). 

What does this mean for the future and a new crash that could happen in the near future or maybe in 2022 or maybe in 2023?

Companies take calculated risks. That 1.5 Billion buy is filed under "Risk to operations". Though one thing is sure that companies that take such positions wouldn't easily sell below their price. So they create solid supports. As far as Tesla is concerned, they'll probably use BTC for their cars or maybe crash it and use DOGE because its cheaper to buy and transfer. Who knows.

[Text]

Companies take calculated risks. That 1.5 Billion buy is filed under "Risk to operations". Though one thing is sure that companies that take such positions wouldn't easily sell below their price. So they create solid supports. As far as Tesla is concerned, they'll probably use BTC for their cars or maybe crash it and use DOGE because its cheaper to buy and transfer. Who knows.

We know that more and more people are aware of Elon now and believe what he says because of the action they took to buy Bitcoin using a huge company.  First, his tweets were mostly in Bitcoin and DOGE followed suit.  So is it also possible that they also bought a lot of its coins to be used in receiving as payment for the purchase of their products and services besides BTC?  To make it even more so and its price continues to rise until it reaches the expectations of other buyers of one dollar.

[VanDeinsberg12]

Do not worry. Everyone knows that Elon is a visionary and if anyone in this world knows how to invest in new technologies, it is him. He will be followed by other giant companies .. I am waiting for Apple as the next investor  

Apple is the last thing I would expect making investment into cryptocurrency, heck their business practice that indirectly trying to get the small repairshop goes bankrupt is enough for me to think that they wouldn't even touch something like cryptocurrencies. Not to mention they already have their own Apple Pay which add more reason why they won't invest to crypto.
Maybe microsoft will but apple? nah.

[TheGreatPython]

After such information, all mainstream media will start talking about Bitcoin. In such a situation, I think the next resistance is at $100k rather than $60k. 

I hope that what you are saying is what is going to really happen but there are a lot of hurdles to pass before the 100k is reached, Tesla's 1.5 billion USD is limited and the only thing that could make this 100k resistance happen is when people will follow Elon's lead and buy their own bitcoin.

Yeah, with Tesla accepting Bitcoins as a means of payment, things are looking very bright for the future and certainly more companies and giants are going to invest and that also means people who had sell orders might remove their orders since no one wants to sell an asset that is going bonkers.

Now my concern is, whether tesla is holding bitcoins with long term perspective or just what usually most institutional fund managers eye for short term benefits. Regardless of whatever their plan, I am too confident about more such big companies will follow in adopting bitcoins which may continue and get into full-fledged which will balance if some of those companies eye only short term benefits.

[Vishnu.Reang]

Apple is the last thing I would expect making investment into cryptocurrency, heck their business practice that indirectly trying to get the small repairshop goes bankrupt is enough for me to think that they wouldn't even touch something like cryptocurrencies. Not to mention they already have their own Apple Pay which add more reason why they won't invest to crypto.
Maybe microsoft will but apple? nah.

We are not talking about Apple accepting BTC as a payment method here. Rather we are talking about they converting a part of their cash reserves to Bitcoin (or other assets such as gold), so that there will be some immunity to the rapid devaluation of the US Dollar. And I don't think that Apple will find BTC as a competitor to Apple Pay in this instance. Apple Pay is used only for making payments.

Tesla was very clear in their statement to the SEC that they are more concerned with their cash reserves and they are not just purchasing BTC, but also other assets such as gold. So the intention is very clear - they want to protect their wealth against inflation.

[Taskford]

Do not worry. Everyone knows that Elon is a visionary and if anyone in this world knows how to invest in new technologies, it is him. He will be followed by other giant companies .. I am waiting for Apple as the next investor  

Apple is the last thing I would expect making investment into cryptocurrency, heck their business practice that indirectly trying to get the small repairshop goes bankrupt is enough for me to think that they wouldn't even touch something like cryptocurrencies. Not to mention they already have their own Apple Pay which add more reason why they won't invest to crypto.
Maybe microsoft will but apple? nah.

This is the influence what Elon  created  since by placing that 1.5B in bitcoin many got curious about this type of adoption and provably once apple  successfully adopt bitcoin in their platform we can provably see more big merchant coming unto  this since, This is just a start of huge break coming  on bitcoin and other  cryptocurrency since slowly by slowly it is now entering in the mainstream.

[acquafredda]

Apple is the last thing I would expect making investment into cryptocurrency, heck their business practice that indirectly trying to get the small repairshop goes bankrupt is enough for me to think that they wouldn't even touch something like cryptocurrencies. Not to mention they already have their own Apple Pay which add more reason why they won't invest to crypto.
Maybe microsoft will but apple? nah.

Tesla was very clear in their statement to the SEC that they are more concerned with their cash reserves and they are not just purchasing BTC, but also other assets such as gold. So the intention is very clear - they want to protect their wealth against inflation.

This is the reason why us, bitcoiners, started accumulating satoshi reserves and why corporate entities are now following. We need the next generation wealth preservation tool and I believe there is no doubt about the fact that we found it in bitcoin!

[skarais]

So far Tesla has influenced bitcoin's rise cycle since they invested their money in bitcoin. Hopefully this will be the start where other investor from big companies will also be affected by the steps Tesla is taking. It is believed that the cycle of bitcoin's rise will continue throughout the year although some people are unsure that the $50K - $100K will be achieved.

This year has been a great year for bitcoin and some altcoins. ATH is being achieved and increased adoption is expected to continue to grow. In the end the government will be increasingly worried that the USD is under threat.

[FanEagle]

We are not talking about Apple accepting BTC as a payment method here. Rather we are talking about they converting a part of their cash reserves to Bitcoin (or other assets such as gold), so that there will be some immunity to the rapid devaluation of the US Dollar. And I don't think that Apple will find BTC as a competitor to Apple Pay in this instance. Apple Pay is used only for making payments.

Tesla was very clear in their statement to the SEC that they are more concerned with their cash reserves and they are not just purchasing BTC, but also other assets such as gold. So the intention is very clear - they want to protect their wealth against inflation.

I do believe that Apple may end up getting some bitcoin as well, so will almost every other company. Fiat is getting worse and worse every day which means we are in a situation where fiat is not doing great and every company knows this, which is why they are not actually making any decisions based on fiat anymore, they are making decisions based on their wealth and they want to keep that.

Why wouldn't Apple want to actually keep their wealth at a high level? They are the biggest company in the world as far as I know (maybe except Chinese banks) and they have so so so much money which means they will definitely want to keep their wealth and keeping it in fiat is not the way to go. Hence I think this distribution of wealth into many things so you never lose value is a thing almost all companies will start thing, tesla started it big time, and others will definitely follow.

[d_eddie]

I think this news is by far the most important news in a long time, by far more important than PayPal. (I don't know if your "after Paypal" is meant on a chronological or importance order).
This is because not the effect on other CFO is they cannot ignore anymore the BTC option for their investment. One thing is a semi-obscure MicroStrategy share. Now we are talking about Tesla, one of the most knows brand in the world.

First of all, I was thinking about the importance in terms of general media coverage - because PayPal and Tesla sell news much better than, say, MicroStrategy or Grayscale - and we saw the effect literally in the first minutes after the news was published. Given Tesla’s reputation and the fact that Musk has over 40 million followers on Twitter this news spread with incredible speed and resulted in a price increase of 20% in the last 24 hours.

Now it will be interesting to see how long this positive wave will last, because probably like all other positive news it will weaken at some point - which means we can expect a price correction, what do you think about that?

It's also always possible that BTC will crash. In particular, the higher the price gets, the more likely it is that governments see BTC as a high-priority threat that they need to take out of the picture. It's not easy to make Bitcoin technically unusable, but there are probably actions that the Biden administration could unilaterally take which would crash BTC to sub-$5k, for example

Anyone who understands how powerful the state's mechanisms are (especially when it comes to the US) must keep in mind that the world's leading power will not allow Bitcoin to threaten the US dollar in any way - which is regardless of who is in power has always been and will be a political constant. I always remember Congressman Brad Sherman who said during the Libra debate that “Bitcoin is a small baby here.", which during 2019 did not seem so far from the truth.

An even more significant statement by the former U.S. Treasury Secretary Mnuchin came during 2020 when he stated ‘We want a stable dollar,’ says U.S. Treasury Secretary Mnuchin: ‘It is the reserve currency of the world and we’re going to protect that’.

Hard to do, even for a well loved, uncontroversial president. Crashing, or at least hitting hard, the companies that invested in btc - including space exploring, tech innovating, financially ripping, US poster child Tesla? Quite unpopular move. Wall Street, fresh VC, tech innovators would take note. Not good. Small investors who are in these companies only for "the tendies" wouldn't be happy, either. If I were Biden, I'd go to great lengths to avoid a shitshow like that.