Wanting More BTC Without Buying It? Elon Musk Shows You the Recipe by Selling Tesla Cars for Bitcoin
More and more people will follow this strategy.
| Sylvain Saurel | Mar 27 | 2 | 1 |
Owning one Bitcoin in its entirety has become something complicated for people who are now entering this new world. Indeed, the price of Bitcoin is still above $50K after having crossed $60K in the middle of March 2021.
In early 2020, I wrote an article warning that the race to own a whole Bitcoin had already begun.
At the time, the price of Bitcoin was below $10K, and few people of the general public were paying attention. The bullish rally we've been experiencing in the Bitcoin world since October 2020 has obviously changed that. More and more people are starting to worry.
More and more people fear that they will never be able to own 1 full BTC
Those people who weren't interested in buying Bitcoin at $10K are now worried that they won't be able to buy a whole one at $50K.
As the price of Bitcoin continues to rise, more and more people will have to think in Satoshi. Satoshi is the smallest unit of Bitcoin that is divisible to eight decimal places. One Satoshi, therefore, represents 0.00000001 BTC. Rather than wanting to buy 1 whole BTC directly, you should take advantage of its amazing divisibility.
Other people say they don't have enough money to buy as much BTC as they would like.
The truth is that all Bitcoiners feel the same way. Whether you own 0.1, 1, 10, or 100 BTC, you still feel like you haven't accumulated enough BTC. Once you understand the incredible future that awaits Bitcoin, you inevitably have this feeling.
Everyone thinks they don't own enough BTC, even Elon Musk
Elon Musk became a Bitcoiner in early 2021.
Convinced by Michael J. Saylor's strategy with MicroStrategy, Elon Musk launched Tesla into the Bitcoin world with a $1.5 billion purchase of BTC. This occurred during January 2021 when the price of Bitcoin was likely to be around $33K.
Tesla did not give more details about its purchase to the SEC, so I am speaking conditionally here about the price Tesla paid for its BTC.
Shortly before revealing this purchase by Tesla, Elon Musk had given an interview on Clubhouse to talk about Bitcoin. He explained that he felt like he was late for the party. Elon Musk regretted not buying Bitcoin a few years ago when he first heard about it.
As you can see, even one of the richest men on the planet feels the same way you and I do about Bitcoin.
He regrets not embracing the Bitcoin revolution sooner, but also not owning enough of it. Yet Tesla bought the equivalent of $1.5 billion worth of them in January 2021. But that's not enough if you clearly understand the awesome future that awaits Bitcoin.
Elon Musk announces that Tesla supports now payments in BTC
To get more Bitcoin, Elon Musk has therefore opted for a strategy that he just revealed on Twitter:
Tesla now supports Bitcoin payment for its cars.
This is quite an announcement made by Elon Musk. This obviously made headlines, but many of the articles that were published failed to mention two even more important details revealed by Elon Musk in the aftermath:
Tesla will handle the payments itself via its own infrastructure operating its own nodes on the Bitcoin network.
The Bitcoin system thus allows Tesla to take full control of the payment process that will be followed by customers buying Tesla cars in BTC. This is something that many companies will want to do in the coming months and years no doubt.
Secondly, Elon Musk revealed that the BTC obtained by selling Tesla cars will not be converted into fiat currencies. These BTC will be kept by Tesla. You read correctly, Tesla will add these BTC to those already held since January 2021.
Elon Musk found a strategy to accumulate more BTC without buying any
Elon Musk has found the recipe to get even more BTC without buying any.
To do this, Elon Musk will sell Tesla cars for Bitcoin. This inspired me the following thought that I shared on Twitter:
So Elon Musk can now buy Bitcoin through Tesla cars.
This is something extremely smart when you think about it. Tesla cars are liabilities that only depreciate once they are put on the road. No attack on Tesla here, since it's the same with every car you'll buy.
Bitcoin, on the other hand, is an asset that keeps increasing in value in U.S. dollars. From a few cents in 2010, the price of Bitcoin is well over $50K as I write this.
So Elon Musk chooses to exchange liabilities that keep losing value in U.S. dollars for an asset that keeps gaining value in U.S. dollars.
Another genius idea from Elon Musk.
Elon Musk's strategy is one that more and more people will follow
You should be inspired by this strategy that Elon Musk will adopt with Tesla. Don't have enough money to buy more BTC? That's not a problem. Just create a product, service, or content that people are willing to pay for BTC.
You will then exchange a good, service, or content for BTC.
As Bitcoin continues to increase in value, you will be greatly rewarded in the future. If you have complete faith in Bitcoin like Elon Musk, this is clearly the way to go in the future.
In the long run, you can even imagine that as Tesla accumulates BTC by selling cars, Elon Musk will end up offering the company's employees to have their salaries paid in BTC directly. A good way to accelerate the adoption of Bitcoin as a unit of account.
Some reading:
Four Essential Questions on Bitcoin Privacy and Anonymity Answered
The Fastest Way To Reach Financial Freedom Is To Reduce Your Goals - Focus on what is essential to living your life on your own terms.
Getting Rich Is a Game — Here Are the 5 Pillars To Be Successful at This Game - Follow these 5 pillars to focus your efforts in the right direction.
Who Else Thinks That Jerome Powell Is Short-Sighted in Seeing Bitcoin Only as a Substitute for Gold? - Bitcoin continues to follow its plan for mainstream adoption.
Give Me 5 Minutes And I’ll Teach You To Make Money With the Stock Market - Two essential rules to know will make all the difference.
Read These 4 Books if You Want To Take Control of Your Personal Finance - Money will always be a problem if you don’t control your personal finance.
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Thanks for sharing your wisdom and analytic competence, the content of your newsletter I find always to be informative and of comfort in view of my choice of embracing BTC almost a year ago now.
In comparison to many I feel still quite new to the space, but hey :) I managed to introduce to it at least 3 other people already!
I am experimenting with some other products and resources within the cryptoVerse since my initial interest in the one and only real value coin there is, in spite of the many indicators that would suggest I should desist from that.
Let's say that I am trying to create the conditions for a greater opportunity, in terms of buying power, to redirect towards BTC accumulation ( with some results ).
I do find the maximalist stance a bit pompous sometimes but I reckon that each individual engaging with BTC have got to go through their own learning avenues and tribulations especially since, as it is being globally recognised now, the revolutionary effect BTC over the lives of us amounts and surpasses by a great degree that of a "sole" economic and financial factor.
The value of appreciating such technology becomes ever increasingly tinted and characterised by philosophical, social and political values as well.
Owning BTC does not necessarily mean understanding its true full proposition and I feel that writings such as the one I just enjoyed reading are contributing a big deal in accelerating that very process.