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Elon Musk’s proven ability to kick the horn nest at the right times is yet to be seen after the recent news that Tesla has bought $ 1.5 billion in bitcoin: since then, the value of bitcoin has been underestimated to nearly $ 50,000, Mastercard has announced that it will allow the use of cryptocurrencies on its network (it would seem at this point as a statement of intent, saying that it will do so when cryptocurrencies are “stable”, which would sign for right now just to stablecoins), and yesterday, Jack Dorsey and Jay-Z announced the creation of 500-bitcoin assets worth approximately $ 23.6 million, to fund the development of a bitcoin-based economy in Africa and India, and with the intention of making bitcoin as an internet currency. In the short term, the normalization of the use of bitcoin aimed at anticipating its future development as the basis of a decentralized and independent digital currency-based economy.
Musk’s bitcoin movement Tesla earned more money in one day than in the previous quarter selling cars, in addition to the strange fact, at the time of the information, that some of the brand’s vehicles were worth around one bitcoin. This is nothing compared to the $ 100,000 it is expected to be worth by the end of this year, or the $ 500,000 that some are expected to be worth as a result of the algorithmic process that will its value gradually consolidated. There is poetic justice here: Musk was licensed by the SEC to artificially raise the price value of Tesla stock; now he’s got his revenge with a trick as simple as revealing that his company has invested in a well-known asset that was going to deliver great value as result of the news made based on the SEC’s own information: its mastery.
At the same time, Musk has been widely criticized, as the electricity consumption is generated by bitcoin. We should remember that there is a lot of self-interest in these allegations about the massive use of electricity in bitcoin mining, an activity that tends, logically, to be precisely located where it can get better prices for energy, and which has long been directed to places where the cheapest energy is obtained, contrary to what many think, obtained from renewable sources for some time now. If bitcoin critics were genuinely concerned about resource consumption that they argue it generates, they would do well to be more concerned about resource consumption and much more obvious inefficiencies – in every way – of world money markets, which move around $ 6 trillion every day just by considering the value of some currencies against others.
The example of Musk and Tesla’s dominance of bitcoin adoption acts as a powerful tool for other companies to try to maximize their money management through such operations, which would accelerate the implementation of bitcoin, for un- currently as a source of value, but over time, and after the development of the algorithm that governs its mining and the incentives to process its activity, to a trading instrument.
This progressive normalization of bitcoin he will fight for many interests and will be subject to a breach of regulation, which will bring much uncertainty about his future. Nevertheless, we are talking about a completely scattered evolution and, therefore, one that will be very difficult, if not impossible, to stop. The fact that more and more relevant players are believing in the future of bitcoin is just a way of the self-fulfilling prophecy established around cryptocurrencies and the benefits offered by using an economic system not controlled by a specific entity. , and instead with mathematical criteria only and without any party able to use speculative power. In practice, it becomes increasingly clear: it is not if, but when.