Billionaire Bitcoin investor (BTC) Tim Draper invested early in Tesla, responding to Elon Musk, the company’s CEO and the richest man in the world. ) Added #Bitcoin to his Twitter resume and joined Twitter CEO Jack Dorsey and Reddit. Founder Alexis Ohanian.
According to reports, Draper, who owns around 30,000 BTC, said he wanted to pay BTC for the Tesla electric truck while introducing the Bitcoin payment processor OpenNode to Musk. He says:
“Hey, Elon Musk, I want to buy an electric truck from Tesla. Although I personally prefer to keep # bitcoin, you can accept # bitcoins through our Draper VC company OpenNode.”
On January 29, shortly after Elon Musk began gaining support for Bitcoin on social media, Bitcoin continued to increase by 14% in just 30 minutes.
Many people think Musk could be the high net worth investor behind the massive Bitcoin establishment on Coinbase last week.
Over the past few days, Coinbase’s premium has risen to around $ 200 compared to Binance. This generally indicates a large amount of buying activity from US investors.
However, the mask did not undergo major changes, but reversed the upward trend overnight. Bitcoin rose from $ 33,000 to $ 38,000 and then dropped back to $ 33,000.
Due to Musk’s interest in Bitcoin and the market’s optimism about BTC, Draper may have posted Musk on Twitter.
In a recent interview with CNBC, Draper said he bought more bitcoins. Draper also stated that he has no intention of selling bitcoin in the future and believes bitcoin is the “currency of the future”. He says:
“Actually I’m buying more [Bitcoin] … # I’m not interested in selling Bitcoin in US dollars. Why should I choose future currencies and sell them in past currencies?”
Data in the chain shows that Draper is not the only one to be interested in long-term gains. In fact, the “HODLing” activity has reached a record high, indicating that Bitcoin investors intend to hold BTC for a long time.
One-year Bitcoin wave of HODL. Source: Lookintobitcoin
Will it be used as bitcoin currency?
Bitcoin is increasingly seen as a store of value and can replace gold as a safe haven. However, the reciprocal and opposing relationships between Bitcoin, gold, and stocks have been decreasing in recent months.
Bitcoin correlation for S & P500, VIX, DXY, gold. Source: Digital Asset Data
In addition to the sharp rise in prices, people’s concerns about inflation and the central bank’s injection of large amounts of liquidity into the central bank generated great interest from high-net-worth institutions and investors.
However, although the adoption of BTC is becoming more and more common, the question still remains whether Bitcoin can be used as a currency and medium of exchange, such as the US dollar today.
The irony is that when the bitcoin price is in a clear upward trend, investors are less likely to sell or spend their bitcoins. Draper said he could pay $ 40,000 in US dollars to buy Internet trucks instead of “future currency”.
However, in the future if Bitcoin price is fixed at a high enough price level and has less volatility, BTC may become more urgent for daily payments.
At the same time, as the network has more and more users and needs to be expanded, the Bitcoin blockchain network may eventually not be used effectively for daily payments on the first tier.
At this point, the second layer of scaling solutions (like the Lightning Network) and sidechains (like Liquid) could become blockchain “applications” that handle small payments immediately. These types of interoperable platforms can be heavy in terms of varying degrees of insecurity, privacy, and decentralization.