I’m incensed by the sloppy and pointless reporting of Nils Prately in his report https://www.theguardian.com/business/nils-pratley-on-finance/2021/feb/08/tesla-should-stick-to-what-its-good-at-and-that-isnt-bitcoin
So I’d like to set him straight on a few things.
Telsa investing in Bitcoin and looking at it as a payment method is simply part of their Ethos of breaking new ground with technology. Elon has been a keen follower of Bitcoin for many years and understands the Blockchain (which obviously you don’t Nils, because if you did, you would not make such a claim).
This is very interesting and I hear this about Crypto all the time:
As Tesla’s statement had to concede: “The prices of digital assets have been in the past and may continue to be highly volatile.”
You are assuming that all other currencies are not volatile. Telsa saying it’s volatile is simply confirming the same as me saying GPBUSD is volatile. All currencies are volatile.
Here’s an example:-
Look the move especially on the 10th of September last year. Massive drop. A currently nicely bullish pair dropped a huge amount with no warning.
FIAT Currencies favourite sudden move is on things like Non-Farm Payrolls once a month, FOMC meetings, Quantitative Easing. None of these things happens in Crypto simply because it is not controlled by a government. Its moves are controlled by volume.
Even Bloomberg is ridiculing Tesla. https://www.bloomberg.com/news/articles/2021-02-08/bitcoin-btc-usd-price-tesla-tsla-elon-musk-move-crypto-into-mainstream they say:
It’s giving Bitcoin a stamp of legitimacy that its early adopters have been craving. Crypto has for long been derided as a made-up asset with no innate value, and it has perhaps most famously been used to buy pornography and drugs on the darker corners of the internet.
Bloomberg, have you never heard of hard cash? Do you really think that most of the drugs deals in the world are paid for by Bitcoin? No, of course not.
I don’t know why Crypto creates such bad reporting. It seems good reporters suddenly lose their ability to think rationally.
Nils last statement is just laughable.
The company should stick to what it’s good at — electric cars, energy-storing batteries and so on. Leave punting on bitcoin to the devotees.
1. Elon is a Devotee to Bitcoin
2. Part of business is growing and testing new ground if you stick to what you are known for and don’t grow you will die. It’s like saying you don’t want to move to electric lighting because you like gas.
In my view, this move is completely in line with the Ethos of Tesla. People don’t like it mainly because they don’t have a holding in Bitcoin and they feel like they have missed the boat.
Good on you Elon — leading the way as usual. It’s what you do. Now watch as the others follow.
