Tesla buys 1.5 BILLION worth Bitcoins !! Good or Bad ?

[fiulpro]

Tesla brought 1.5 billion worth of bitcoins and at the same time the owner did this so that they can finally accept bitcoins as a form of payment. Now this is exceptionally amazing since, this year only Tesla did achieve such an amazing feat and Elon Musk apparently is doing a lot of good for the community , he even hosted a completion for people but let us just focus on the thing he did for bitcoins. This is an amazing opportunity since he would not only inspire people but you would also have a chance to buy things like Tesla using Bitcoins.

https://www.google.com/amp/s/www.cnbc.com/amp/2021/02/08/tesla-buys-1point5-billion-in-bitcoin.html

Tesla announced in an SEC filing Monday that it has bought $1.5 billion worth of bitcoin.

The company also said it would start accepting bitcoin as a payment method for its products.

CEO Elon Musk has been credited for raising the prices of cryptocurrencies, including bitcoin, through his messages on Twitter

They think it will help with more Flexibility and at the same time increase the cash returns .

BUT what am worried about is :
The market manipulation by Elon Musk that did happen this month on twitter , it was not only bad but at the same time it could mean that he plans to do such things in the future.

Even the author of the article seems to notice this :

The moves raise questions around CEO Elon Musk's recent behavior on Twitter, 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

This is certainly a good move but it just gives more scope for the market manipulation.

What do you guys think ?? Will this bring more Volatility in the market controlled by such Whales ?

[sheenshane]

IMO, I consider for now that it's good news and surely this might be the cause again that Bitcoin will surge price in the market and create another ATH which is my presumption is $50k within this month and most like rumored by some predictions.

I can't give some assumption in the future what will possibly happen, as long as Elon Musk helps the entire crypto give awareness from other investors and also might in institutional investors.  And probably more other private business sectors will follow the same as what Elon Musk did to accept Bitcoin as a way of payment.

He once gave a negative comment on Bitcoin last year on his Twitter post.
https://twitter.com/elonmusk/status/1340588909974200321?s=20

"Bitcoin is almost as bs as fiat money"

[Botnake]

Good news for future adoption but what happen to the market now is bad IMO as it pump so hard and it could create a huge FOMO that could possibly make other investors who ride now regret their decision. I don't blame them sharing it to the public, they buy bitcoin because they invested it and want it grow in the long run, but we should be more careful especially the people who get FOMO as there's always the other side of this bull run.

[muenze]

Elon Musk has said in the past its important to have FUN while working, and you need a little more motivation than just $$$.

So thats probably why he does things

There is a lot of huge names now in Bitcoin, and as more join no single one will have that huge influence or any
interest in crashing Bitcoin.

For as long as Bitcoin grows everyone is happy they found a hedge against the FEDs printing money like crazy.

[btc_angela]

And there you go, the official annual report of Tesla Inc. and let me quote,

We hold and may acquire digital assets that may be subject to volatile market prices, impairment and unique risks of loss.
 
In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. As part of the policy, which was duly approved by the Audit Committee of our Board of Directors, we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future. Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt.

https://www.sec.gov/Archives/edgar/data/1318605/000156459021004599/tsla-10k_20201231.htm

So not only confirming that they have invested $1.50 billion in bitcoin, in the near future we may see them readily accepting bitcoin as payment scheme.

This is welcoming news not just for crypto enthusiast, as well as the financial world as we all know that when Musk open his mouth, there could have been consequences, (whether good or bad.)

[Reid]

One thing is for sure.
It might have created panic and investors ride the wave but I doubt this will stay for a long period of time.

I still don't understand Musk's purpose in doing all of this.
Let's just hope it's really for something good that would increase usage and demand.

https://www.sec.gov/Archives/edgar/data/1318605/000156459021004599/tsla-10k_20201231.htm

Thank you Angela.

[crwth]

In general, for everyone that is involved in crypto, it's a good thing because the richest person right now is endorsing the use of cryptocurrencies and I doubt if no one listens. It's going to create a ripple effect that would create more opportunities for everyone and is going to be for the people and not for those with power to create money out of thin air.

I look forward to even more companies buying BTC. I see a lot of Apple articles on when they are going to implement BTC. It can be the next big thing for sure.

[cr1776]

Tesla brought 1.5 billion worth of bitcoins and at the same time the owner did this so that they can finally accept bitcoins as a form of payment. ...snip...

What do you guys think ?? Will this bring more Volatility in the market controlled by such Whales ?

Tesla doesn't have "the owner" it is s publicly traded company.  It has many people who on stock in it. 
Likewise, they didn't have to do this so that "they can finally accept bitcoins as a form of payment" - they could've accepted bitcoin as payment without buying ANY bitcoin, let alone $1.5 billion in bitcoin.

Any usage is good.  If Tesla is buying for their treasury, they aren't in it to trade, they are in it for other purposes, so why would this increase volatility?  If anything, bitcoin held by people not trading and who are using it as part of their portfolio and asset allocation decreases volatility.

[DapanasFruit]

What Elon Musk has been doing that resulted into big pumps of Bitcoin are welcomed manipulations though of course, there are some who are raising some concerns all because we have one man who has a great power to direct the movement of the market, and we know that a concentration of power and influence is not really that good most especially that we are working for decentralization. However, don't get me wrong because I myself embrace and welcome this rise of Bitcoin due to Elon Musk.

[meanwords]

How is this going to be bad news? more companies holding Bitcoin as an asset means less volatility for the whales to manipulate. Price fluctuation will lessen and there's going to be less dumping that's going to happen. This news is such a win-win situation for all.

If anything, bitcoin held by people not trading and who are using it as part of their portfolio and asset allocation decreases volatility.

People should realize this now, especially those people who are still negative about Bitcoin's volatility.

[Twinkledoe]

How is this going to be bad news? more companies holding Bitcoin as an asset means less volatility for the whales to manipulate. Price fluctuation will lessen and there's going to be less dumping that's going to happen. This news is such a win-win situation for all.

If anything, bitcoin held by people not trading and who are using it as part of their portfolio and asset allocation decreases volatility.

People should realize this now, especially those people who are still negative about Bitcoin's volatility.

 A lot are complaining about bitcoin volatility, now that btc is more than 43k, are we still hearing these complaints? Tesla buying huge amount of bitcoin is actually great news. Why we need to be pessimistic about it, right? It means, more and more known companies are trusting bitcoin or crypto as part of their investments. And if Tesla will use crypto as part of their payment method, then the use case just increased.

[PonZZ]

It must be good for Bitcoin. Any time a big company invests in Bitcoin, the price goes up. So Tesla may drive the price to $50K.

[yazher]

Good news for future adoption but what happen to the market now is bad IMO as it pump so hard and it could create a huge FOMO that could possibly make other investors who ride now regret their decision. I don't blame them sharing it to the public, they buy bitcoin because they invested it and want it grow in the long run, but we should be more careful especially the people who get FOMO as there's always the other side of this bull run.

I think you're right because there are some people out there who only wait for the price to increase even more before selling their BTC and also they're holding a huge amount of BTC as well. If they happen to sell their BTC after this event then Tesla really needs to hold their BTC for a long time or after the price will greatly increase again because they bought their BTC when the price was high. There is a good thing with their decision as well because if the price will continue to increase even after this announcement, their investors' investment would be safe as well.  

[xcaret]

What Elon Musk has been doing that resulted into big pumps of Bitcoin are welcomed manipulations though of course, there are some who are raising some concerns all because we have one man who has a great power to direct the movement of the market, and we know that a concentration of power and influence is not really that good most especially that we are working for decentralization. However, don't get me wrong because I myself embrace and welcome this rise of Bitcoin due to Elon Musk.

If Musk caused the spike , he can short it too, and buy back at 20% or more less. Which is good business from a money making point of view.
Just saying .

[Sithara007]

The impact from this move (from Tesla) may be even more than what we had from the PayPal adoption a few months back. It is not just the purchase and the volume involved that matters. The fact that Tesla moved a part of their cash reserves from US Dollar to BTC and bullion tells a lot about how the corporates feel about the ongoing stimulus measures. Everyone is afraid that the US Dollar is losing its purchasing power, due to the rapidly increasing M1 supply. Tesla has become the first corporation to use BTC as a store of value, and in the coming months we may witness a lot more of the corporations following suit. I won't be even surprised if mega corporations such as Google, MicroSoft and Amazon also do the same.

[Ozero]

We see that after this news from yesterday, when the price of bitcoin was more than $ 39,000, today it has risen to over $ 46,000, that is, increased by about $ 7,000.
This news is, first of all, good because the leading company that implements high technologies, including one of the richest people in the world, began to openly invest in bitcoin, that is, they recognize the prospects for the development of cryptocurrency. For all people in the world, this is a very good sign to invest in cryptocurrency, especially against the background of the current inflationary processes of the common currency of states.

[OcTradism]

And there you go, the official annual report of Tesla Inc. and let me quote,

Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt.

https://www.sec.gov/Archives/edgar/data/1318605/000156459021004599/tsla-10k_20201231.htm

It will be my curiosity to see how Tesla will have their ToS for bitcoin used to by Tesla's products. How they will block all users with Bitcoin from dark markets or money laundering or frauds. I am sure they will have to include such strict rules to bind with the laws in the US.

This news is big as it is not simply for institutional investments, but also for real products, and future real adoption for bitcoin. Tesla is a company beyond financial companies, hedges, etc. and they is the next giant that take into actions, invest and adopt bitcoin.

Welcome Elon and Tesla to bitcoin ecosystem. When Moon? 

[Distinctin]

Too good we are, apparently, this helping the crypto community.

Elon Musk and Tesla are pushing the market to move extra miles. Crypto/Bitcoin holders will be happy, not those who are fans of fiat money.
Elon Musk prepares for future development and he knows that Bitcoin can potentially consider as a major currency be used in the future. And to anticipate such a huge change, they are taking the huge step first.

One of the richest men in the world knows what is better and what exactly he does to crypto means that we are into that someday.

[Wexnident]

Well, one thing is for sure, it has caused quite a surge in price in the past day which can surely be seen as a temporary pump. I'm not sure if that's healthy or not though, but I'd expect it to correct itself in the next few days. In the case of adoption though, Tesla accepting Bitcoin could be seen as a good move. Although at this point, Bitcoin might be seen as a "premium" currency of sorts, and would only be used in transactions worth big money (which hopefully doesn't happen). It's a good endorsement, yes, but I might want to see something that adopts it to everyday life though.

[pakhitheboss]

Except with the Market Manipulation which he has been doing quite frequently I do not see any other issue. By the way we as a community are aware about Market Manipulation by hidden Whales and after his investment we now know a Whale who is very vocal. The good thing about him is that through his twitter account he has been encouraging other celebrities and companies to invest in Bitcoin.