Remember when Bitcoin was called the "people's money"? No longer.
There was a time when people were aching for places to start accepting Bitcoin. They thought it would be the greatest thing.
Well, if the quest is freedom from tyranny, it is not happening.
Source
Many are gaga over the fact that Elon Musk tweeted out that people can now buy Teslas using Bitcoin. The company will start accepting Bitcoin as payment in the United States. Musk's plan is to roll this out to the rest of the world by the end of the year.
So why is this a problem? It really is not if you believe that Bitcoin as a pathway to freedom is dead. Hodlers should keep doing so because it will make you rich.
However, it was completely hijacked by the major institutions.
Tesla is getting ahead of everyone else but it is going to start a trend. This will likely send the price skyrocketing, creating even larger whales. Of course, who is bigger than Wall Street when it comes to whale status? Even Musk and Tesla are bit players compared to that.
Nevertheless, Musk revealed exactly what I wrote about a couple years ago. When corporations get involved, they will swallow up the supply. Of course, in this instance, individuals will be volunteering to turn it over.
Here is what the situation with Tesla is:
The sudden bullish impulse came after Tesla’s CEO Elon Musk announced that customers can now purchase any of the firm’s electric vehicles using BTC. More importantly, Musk stated that the company uses an “internal and open-source software that operates Bitcoin nodes directly.”
So Tesla is running Bitcoin software on their computers already. I wonder if this means they are mining.
Leaving that aside, we get this interesting tidbit.
Such infrastructure allows it to retain the BTC obtained from the car sales instead of converting the tokens immediately into fiat.
There it is clear as day. Tesla will not have to sell the Bitcoin it receives as payment. Instead they can just keep accumulating it as people use to buy the vehicles. As long as they have enough cash to meet their obligations, all Bitcoin, as least the portion that is GP on each vehicle, can be held as such.
From a supply and demand position, it is easy to see what this can do. If we multiply this out by a few dozen Fortune 100 companies, we could see things getting really scarce.
Naturally, this will be great for the token price and those holding it presently. It will not be, however, good for those who do not have any Bitcoin. As companies like Tesla eat up more of the supply, the few crumbs will be left over for the general public.
Source
Just think of what Amazon could do with its $385 billion in sales and $21 billion in net income in 2020 alone. Consider what things would look like if they received a few billion in sales paid for with bitcoin. They could just hold onto it and not miss a beat.
We already know the new supply is being consumed by the major institutions. Now we are going to likely see the start of companies getting paid in Bitcoin and just holding onto it. This is why the idea of this currency as a payment system is misplaced. The velocity of Bitcoin is going to slow down to near zero.
Once it is in the hands of these major corporations, it will not likely leave.
They see it as a store of value and are going to use that to prop up their balance sheets. There is nothing wrong with this because it certainly will serve that purpose. As a Tesla shareholder, it is going to be good to get more BTC on the balance sheet. That will only strengthen it going forward.
The same will hold true for a lot of other companies once they opt to get involved.
Of course, who is going to be getting Bitcoin? People with money. This is going to leave most of the planet out of the game. It will be worse than gold since more of that is being produced each year. With Bitcoin, it is a declining amount over time. Presently, there are only 900 Bitcoin mined a day.
So once again, we see people getting exactly what they wanted yet missing the point completely. Sure, many are going to make a lot of money. However, if Bitcoin is going to serve as a foundation for a new financial system, where all economic activity is built upon the collateralization of the currency, guess who is going to be holding it?
Oops.
Thus, we are possibly looking at a new financial system that is built upon the assets that are owned by Wall Street and major corporations.
Actually, isn't that the system we already have?
A great deal of effort was spent to get back exactly where we started.
If you found this article informative, please give an upvote and rehive.
gif by @doze
logo by @st8z
Posted Using LeoFinance Beta
I interpreted this as being required to operate nodes so that it can be 100% confirmed that Bitcoin payment has been received. If they trust other nodes, those nodes can lie or the connection can be hacked. Of course it isn't very easy to steal a smart-car from a dealership, so who knows.
Corporations co-op Bitcoin
I'm not really seeing a problem here. The playing field has been leveled, and it turns out that big business tycoons are better with money than people who live paycheck to paycheck.
If Bitcoin's only purpose is to pit the corporations vs the central banks that's a huge win for everyone. Any extra value is just icing on the cake.
Posted Using LeoFinance Beta
This will always be the case. Those who can't handle money will not end up as captains of the economy.
Posted Using LeoFinance Beta
!ENGAGE 30
Posted Using LeoFinance Beta
ENGAGEtokens.The great thing is that Tesla is playing the Game correctly
This is what I call flexibility in action
Some are steadfast in rejecting Bitcoin
But Musk knows the direction of the wave and goes with it.
Within years, Bitcoin will become a means of payment in all fields.
Posted Using LeoFinance Beta
Disagree. It will be in the hands of corporations who have no need to move it.
Posted Using LeoFinance Beta
If no need to move, that would be dead capital then. Not good for a company to accumulate dead capital. A company will always try to use their assets to create extra money. So they will strategically sell (and buy) BTC regularly.
Yep been saying it for a while now. Everyone was cheering for Imitational investing so the price would sky rocket. uhhh you all realize that means corporations are going to control everything again exactly why bitcoin was built in the first place to remove this. Careful what you wish for... Same cycle over and over again
Fortunately bitcoin is not the only crypto. This move would be futile in the end once the masses discover the abundance that exist within the crypto sphere with the variety of options in terms of altscoins. They can only try to control this space but it is nearly impossible
Posted Using LeoFinance Beta
Bingo. That is exactly where we are heading.
People are pretty foolish when you think about.
Posted Using LeoFinance Beta
*it.
Posted Using LeoFinance Beta
People, on average, are pretty damn stupid.
Posted Using LeoFinance Beta
For sure. I think we're still on time to try and gather as much BTC as we can, but it will prove more and more difficult from now on.
That is true. Get your hands on what you can so that you can be part of the game.
Posted Using LeoFinance Beta
Working on it! 😁😉
View or trade
BEER.Hey @taskmaster4450le, here is a little bit of
BEERfrom @pixresteemer for you. Enjoy it!Learn how to earn FREE BEER each day by staking your
BEER.Congratulations @taskmaster4450le! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :
Your next target is to reach 27000 upvotes.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPCheck out the last post from @hivebuzz:
I am not surprised because the inflation of the Bitcoin gets halved every four years and there is a maximum amount of BTC. This means that if retail believes it in so much, then it can also work as a good store of wealth. The early birds getting into BTC will be the winners for their risk and this is very similar to the stock market.
As good as BTC is, I don't think it will be the currency used for normal transactions. So there is still room for any of the other cryptos to take its spot.
Posted Using LeoFinance Beta
America's response to stopping the Chinese dominance of crypto was to open up trading and now middle and corporate America as best positioned to take the lead in HODL.
It's an amazing battle, I hold 0 Bitcoin. Probably a bad idea but it's been great to watch.
Posted Using LeoFinance Beta
So much swimming to drown on the shore. Bitcoin was supposed to be the currency that would overthrow the current monetary system, and now it turns out that it is ending up being the same. There is talk that bitcoin is decentralized, but since it is only held and manipulated at will by large corporations, it seems to me to be very centralized. Anyway, bad news for those who wanted a change in the system, good news for those who own Bitcoins and will continue to hold them.
Greetings!
Posted Using LeoFinance Beta
Plot twist: Elon is using Teslas to buy Bitcoin 😁
The market doesn't seem to care about the buying of teslas with bitcoin, or at least that what the price action indicates. Kind of strange if you ask me
Posted Using LeoFinance Beta
As @edicated says:
That is exactly what was going through my mind. And for the second time already today. I thought the same when reading another post earlier.
It's not happening with BTC per se but more interesting to me is the possibilities for change that have been unleashed along with the potential that blockchain offers.
This could be a antidote to:
However, seems to me, human beings in general haven't evolved sufficiently to be able to take advantage of such possibilities, for the greater good. Most of us are still looking out for ourselves and driven by fear and scarcity.
It still makes for a very interesting game though. 😁
Posted Using LeoFinance Beta
Do you think this would ever happen with Hive? I mean it kind of already is. The Hive token is sort of that base layer store of value that when staked allows you to do transactions and hold value. Then you have the other tokens from the communities that actually have more of a singular utility. I wonder how long it would be before there was just a dedicated payment token on Hive for the transaction of goods and services. Maybe I am making it more complex than it needs to be and that single token could just be Hive.
Posted Using LeoFinance Beta
Tesla accepted that they are diversifying their investment portfolio and maximizing returns on their cash. I hope that these corporations will not only accept payment in crypto, but do their expenses as well. Then it will be distributed back to more people. That's a long haul though.
Elon Musk, CEO of Tesla, is a visionary and he knows the value of Bitcoin is going to be in the next 5 or 10 years. Good thing is that he took so many years to come out and invest in them. Haha! Tesla purchases are also putting money in the crypto market. For now it's great for Bitcoin and crypto adoption, but in future, if only 10 corporates own the major chunk, then it's a problem . It should be like 1,000,000 small business owning the major chunk. That serves the Decentralization very well.
Posted Using LeoFinance Beta
I don't understand what's the problem.
Bitcoin was not made to fck institutions and give power to minnow.
Of course institutions will get in, of course they will hold the majority of the Bitcoin supply.
So what? Don't you understand? They are forced to do so and use this new financial network, and yes, it is very different than the traditional one in a good way.
Posted using Dapplr
TLDR? If u greedy buy more BTC, if you don´t like the companies buying up the new supply get involved, buy! convincing the whole world buying BTC could possibly make a change, and now think of how likely that is...
Posted Using LeoFinance Beta
Much like you I am not surprised. I saw this coming as well. Great for the holders but Bitcoin is far from the people's money.
Posted Using LeoFinance Beta
Luckily .... here in Canada we can earn 1500 Satoshis a day by shaking our iPhones. Thanks to Shakepay. https://shakepay.me/r/628F30E
Posted Using LeoFinance Beta
WTF its Gooing stupidity here
Posted Using LeoFinance Beta
They are not selling cars, they are buying BTC with their overpriced cars. In 5 years the cars will be technically worthless, but the BTCs will be mooned. What a deal!