Tesla – one of the 10 largest companies on Fortune 100, run by one of the richest men in the world, Elon Musk – transferred $ 1.5 billion from its cash to Bitcoin (BTC) in early February. Musk purchases of bitcoin surprised traditional investors, who now had to understand how their investment in Tesla relates to bitcoin.
Currently, most of Tesla’s revenue comes from the sale of renewable energy credit, or REC, which will disappear over the next few years as competing automakers build their own zero-emission vehicles and form regional economic groups with countries that request it.
In a document filed by Tesla with the US Securities and Exchange Commission, the company said it has updated its investment policy, making it more flexible in terms of diversification and maximizing the return on inert cash. As part of the plan, Tesla said it is investing in several “alternative reserve assets, including digital assets, gold bars and [and] funds traded on the gold exchange.”
“Since then, we have invested a total of $ 1.50 billion in Bitcoin under this policy, and we may acquire and store digital assets from time to time or for an extended period. Furthermore, we plan to accept bitcoins as a payment method for our products in the near future in accordance with the law. Applies in principle and on a limited basis which we may or may not settle upon receipt. ”
In the bitcoin market, Tesla has recognized and marketed the crypto industry as institutional proof of the use of bitcoin as a store of value.
Related: Tesla, Bitcoin and Crypto Space: Continues Musk’s Show? Experts answer
Using micro-decentralized energy sources for Bitcoin mining
Other Tesla companies manufacture and sell solar panels, sunroofs and batteries. Batteries are used in cars and act as energy storage for solar systems in homes.
Solar cell systems in homes can carry surplus energy to the grid. The local power company will divide the customer’s electricity bill based on the amount of electricity drawn from the system.
Tesla Powerwalls can store this excess energy, power various items in your home, including air conditioning, and charge your Tesla electric car.
Excess energy from Tesla’s micro-energy sources can be diverted to mining. Without cryptocurrency mining, excess power is wasted or stored and sold for pennies in dollars. Tesla and other energy companies can now convert surplus energy into digital assets such as bitcoin that can be financed immediately.
About the topic: From parental home to depot: Bitcoin mining has become industrial
How SpaceX fits in
Many speculate that Tesla’s investment and adoption of bitcoin as a payment method is an important directional signal for the company. As we know, Musk is also the CEO of SpaceX, a company that intends to establish a colony on Mars in the next decade. However, the US dollar will not work on Mars in the first place. The increased connection time between the Earth and Mars servers presents many problems. There will still be a need for a verifiable and reliable way of transferring value between planetary economies.
Bitcoin offers the best solution for securely transferring value between planets on a reliable network where blocking times of 10 minutes are favorable rather than troublesome. SpaceX Colony can trade locally with a suitable local stockbroker and safely transfer this value to Earth without any intermediaries or worries about inflationary monetary policy locally. Bitcoin offers people a smoother way to merge interplanetary economies. Therefore, it is entirely possible that colonies on Mars will drive Bitcoin nodes using SpaceX’s Starlink constellation.
Decentralized server architecture for a complete Internet
Moving from an analog world to a digital indigenous society requires programmable money. The current monetary banking system is outdated, inefficient and unable to meet the needs of a technologically advanced society.
Bitcoin mining is the backbone of this development. Bitcoin is the most popular digital currency in the newly formed decentralized economy. Bitcoin has achieved critical network effects and is the logical choice as the original digital global reserve currency. The Internet of Values - where value is transferred as efficiently, cheaply and reliably as data is now – is free from the control of any authority or person. Bitcoin serves this purpose thanks to the decentralized architecture built into the Bitcoin protocol.