- Elon Musk agrees with the proposal that claims Bitcoin could be an alternative to counteract bank inflation.
- Crypto community speculates on possible treasure allocation of Tesla in Bitcoin.
Tesla’s CEO, Elon Musk, has been the subject of much attention in the crypto community. The businessman has made a series of tweets in which he shows his interest in Bitcoin. A few days ago, Musk stated that he “would never refuse payment in Bitcoin”.
This has sparked a debate in which Bitcoin emerged as an alternative to the traditional financial system. The author of the book “Thank God for Bitcoin: The Creation, Corruption and Redemption of Money,” Robert Breedlove argued that the Bitcoin Network is a means to “optimize” how value moves in space/time. As opposed to fiat money that is efficient for moving money only in space.
In that sense, Musk responded and went on to describe money as “an information system” that allows the construction of goods and services. These last two factors are what create value. Therefore, the currency that has the system with “less error and latency” will win.
Musk endorsed one user’s comment on how Bitcoin could win in this race if used to repair the traditional financial system against the “inflationary madness of the banks” by using it as a store of value.
The co-founder of the Gemini exchange, Cameron Winklevoss, responded to Musk that inflation is a “harmful” force. In that sense, he sees Bitcoin and its network as an “incorruptible” means of allocating the value of work without distortion. Meanwhile, Morgan Creek Digital Assets co-founder Anthony “Pomp” Pompliano predicted:
Elon Musk will become one of the biggest Bitcoin advocates in the world.
Will Tesla treasure be assigned in Bitcoin?
On the other hand, there are community members who have asked Musk to reveal whether he has purchased Bitcoin to make a change in Tesla’s treasure strategy. Rumors have been gathering momentum since Musk and MicroStrategy’s CEO Michael Saylor held a public discussion about the advantages of Bitcoin as a store of value.
Saylor is recognized as one of the executives who have driven the adoption of BTC at an institutional level. In 2020, MicroStrategy adopted BTC as a reserve asset to hedge against dollar inflation. Since then, Saylor has made an effort to get other companies to adopt BTC, but has refused to disclose further details about his talks with Musk.
Since MicroStrategy bought Bitcoin as part of its treasury policy, the company’s shares have shown a strong correlation with the price of Bitcoin. Data from Ecoinometrics shows that the company’s shares have had a 368% increase since that period.
Jan. 14, 2021
— ecoinometrics (@ecoinometrics) January 15, 2021
As reported by CNF, Musk has disclosed in the past that he owns 0.25 BTC. Tesla’s CEO considers BTC to be a “very brilliant invention,” but has kept it a secret whether he will pursue a strategy similar to MicroStrategy.