, 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.
May 22, 2023
Every year the Bitcoin community is celebrating the fact that somebody bought two pizzas online. This looks a little bit strange at first glance but it is one of the most important moments in Bitcoin’s history. What is Bitcoin Pizza Day all about and why is everybody celebrating it?
May 22, 2023
The guys who self-identify as the Taproot Wizards - Eric Wall and Udi Wertheimer - entered the main stage of Bitcoin Miami to loud cheers. After their short and silly wizard dance, the panel discussion started in earnest. But not everyone in the Bitcoin community is a fan of their quirky attitude and projects.
May 19, 2023
We wrote about it earlier: Jason Lowery believes Bitcoin could become the world's reserve currency and that countries should engage in a peaceful "arms race" to mine Bitcoin. He believes Bitcoin is a form of digital property that will be defended similar to how navies secure maritime thoroughfare. Not everyone is sold on this concept. Let's discuss a contrarian view.
May 18, 2023
Stablecoin issuer Tether (USDT) in its recent reserves report reveals that the company holds approximately 52 thousand BTC, worth a respectable $1.5 billion. This is only a fraction of its total assets but signals an interesting potential trend of institutions allocating a piece of their capital to Bitcoin.
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