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Tesla bought bitcoins for $ 1.5 billion. But why?

Recently, Elon Musk has shown a specialinterest in cryptocurrencies. First, the head of Tesla and SpaceX posted several positive tweets about bitcoin, which led to an increase in its rate by $ 5,000, and then in the same way accelerated the price of another cryptocurrency - Dogecoin. more than 300%... Now it's clear why Musk was so interested in crypto - Tesla announced that it had bought bitcoins at 1.5 billion (!) Dollars... This is an official purchase from a company account,which was registered by the US Securities and Exchange Commission. In addition, Tesla also announced that it plans to accept bitcoin as payment when purchasing cars. But why does she need all this?

Elon Musk wrote about cryptocurrencies for a reason

It's one thing if it was buying Musk himself,which he would have done from his own money. But the head of Tesla does not have such a free amount. Despite the fact that he is one of the richest people in the world, most of Elon Musk's fortune is Tesla stock. And the entrepreneur prefers to once again take a loan from the bank (which he is happy to provide) than to sell shares when he needs a large amount of money. It turns out that Musk was able to convince Tesla's board of directors to make such a large purchase from the company's funds.

Why did Tesla buy Bitcoin?

Tesla said in a statement that it had boughtbitcoin for "more flexibility with further diversification and increased cash returns." In addition, the company said it would begin accepting Bitcoin payments in exchange for its cars. This will make Tesla the first major automaker to accept Bitcoin as payment.

Elon's behavior was immediately associated with this purchase.Mask on Twitter in recent weeks. He is credited with increasing the value of cryptocurrencies like bitcoin and dogcoin by posting positive messages about them and thus getting more people to buy.

Musk put Bitcoin directly on his Twitter profile

When Musk joked about dogcoin on Twitter, Ilaughed when Musk set himself #Bitcoin on his Twitter profile, - I laughed. Everyone thought that he was just getting tired of work and having fun in this way. Tweets something about bitcoin or another cryptocurrency and watches how others buy it, and how much the rate is growing. Perhaps for the richest man in the world, it’s such fun to control the masses through memes and tweets. Yes, yes, he posted memes with dogcoins and himself. A man with a fortune of billions of dollars.

The meme with which Musk himself confirmed that it was he who raised the dogcoin rate

But when Tesla bought Bitcoin for $ 1.5 billion, and not only Musk made this decision, but Tesla's board of directors, my understanding of what was happening broke.

Of course, I have an idea in my head that suchcompanies like Tesla, Amazon and Facebook would like to rule the world and have an alternative currency. Not the US dollar. And we know that Facebook has already tried to do this by issuing Libra, its own currency, but the SEC (the US Securities and Exchange Commission) closed the case. As Pavel Durov was wrapped up with his TON cryptocurrency, where billions of dollars were invested.

And Musk decided to take what is already there, andto use for this purpose? What is the purpose? Take over the world? Create an alternative financial system? It feels like we do not understand something, - says Mikhail Korolev, co-owner of the 2miners mining pool.

Indeed, the reasons for the purchase are not yet clear, but it is obvious that this caused another boom in demand for bitcoin, as a result of which the bitcoin rate exceeded $ 44,000... Tesla shares are up more than 2% in premarket. At the same time, Tesla warned investors about the volatility of the bitcoin price in its documentation filed with the SEC. But it doesn't seem to be stopping anyone.

Guess where on this chart is the moment when it became known about Tesla's purchase of bitcoins

Can Bitcoin replace the dollar?

And the fact that Tesla will start acceptingcryptocurrency as payment for Model 3, Model S and other cars, only confirms the intentions of the company and Musk himself in the future to abandon the American dollar in favor of bitcoin. The only question is - is bitcoin good for these purposes?

In fact, there has long been a need for an alternative to fiatmoney, without transfers for 3 days and situations like "you cannot transfer money from a bank card of one country to a card in another country." Another issue is that cryptocurrencies are not very suitable for the role of replacement, at least those that are floating. Moreover, no governments in the world will allow replacing current money with something anonymous and decentralized, - believes Pavel Dmitriev, author

Surely Musk had a clear reasoning whyTesla should buy bitcoin, especially for that amount. As of the end of 2020, the automaker had about $ 19 billion in free money, so that's a good chunk of that. And the head of Tesla is clearly not a stupid person to “buy highs,” as traders say. But I bought it. Another toy for Elon that his company just paid for? Or does he really have a plan, do you think? Let's discuss in the comments and in our Telegram chat.

P.S. In the meantime, I will probably leave my dogcoins, suddenly by the end of 2021 I can buy Tesla with them.