, 2 years ago
Elon Musk broke it to the public via Twitter that Tesla is going to accept Bitcoin. Within minutes after his initial tweet international news media was all over the topic. Not only because Musk is creating a hype for cryptocurrencies and particularly Bitcoin and Dogecoin, but also because this spark a real change with many other companies worldwide. Musk known for his role as an innovator and risk taker and being visionary.
Is this mass adoption? And if the answer is yes, what would it look like in the near future?
While many disciples of Bitcoin and its idea of being a peer-to-peer payment or cash system think that this is the right thing to do, others are not so convinced about the recent move of Tesla. Their concern is that Bitcoin is more of a store of value than a currency and that it is foolish to spend an asset that will grow in value over time.
On the other hand, what is a store of value good for, if it is not exchanged on the open market? It seems that a store of value cannot succeed without trade or exchange. One thing is particularly noteworthy. According to Elon Musk, Tesla will not convert the additional BTC income to fiat currency. Meaning that they are going to sell cars in order to hodl.
Over the years many experts have argued that mass adoption is not possible, because BTC doesn’t scale and isn’t adopted by merchants. That has changed and not only Tesla is accepting BTC. PayPal is integrating it as well, meaning almost all online merchants will accept BTC one way or another.
The missing part of this puzzle is the infrastructure. Many merchants accept Bitcoin, but only using a payment processor. According to Musk, Tesla is using their own Bitcoin nodes and infrastructure. This is a strong hint that Musk and Tesla are aiming to support the Bitcoin network itself. The next level of true adoption would require Tesla to pay the companies suppliers and partners with BTC. Even that staff would need to receive their payment in Bitcoin.
This seems to be far fetched and neither Tesla nor Musk have made any claims to plan such things. But true mass adoption would require them to leave the US-Dollar behind and switch completely to Bitcoin.
Jan 31, 2023
The mining difficulty reached a new all-time high and while this is a good thing in the long run, it burdens some of the miners. What is the mining difficulty why has it reached a new all-time and how is it going to adjust?
Jan 31, 2023
Non-fungible tokens are one of the biggest drivers for Ethereum’s decentralized ecosystem of financial applications. For a long time, Bitcoin was missing this feature and it appears that some Bitcoiners were even happy about it. Not everybody is a proponent of JPG ownership, right? Things have changed with a new protocol that is called Ordinals.
Jan 26, 2023
When Elon Musk announced in early 2021 that Tesla would become a Bitcoin company, investing in Bitcoin and accepting BTC for payments, the market went crazy. Alas, Elon turned down the Bitcoin community later when Tesla renounced its plans to accept BTC. The story took another unfortunate turn last year after Tesla sold a sizeable portion of Bitcoin.
Jan 24, 2023
Play to earn is closely connected to NFTs and blockchain gaming. Most of our dear readers might have already heard of the concept behind these games. But have you ever heard about listening to earn? This could be a brand-new thing and help you, your friends, and your family to earn some Bitcoin while being entertained or educated.