Now Corporate America Is Going To Take All The Bitcoin

about 3 years ago

Remember when Bitcoin was called the "people's money"? No longer.

There was a time when people were aching for places to start accepting Bitcoin. They thought it would be the greatest thing.

Well, if the quest is freedom from tyranny, it is not happening.

Source

Many are gaga over the fact that Elon Musk tweeted out that people can now buy Teslas using Bitcoin. The company will start accepting Bitcoin as payment in the United States. Musk's plan is to roll this out to the rest of the world by the end of the year.

So why is this a problem? It really is not if you believe that Bitcoin as a pathway to freedom is dead. Hodlers should keep doing so because it will make you rich.

However, it was completely hijacked by the major institutions.

Tesla is getting ahead of everyone else but it is going to start a trend. This will likely send the price skyrocketing, creating even larger whales. Of course, who is bigger than Wall Street when it comes to whale status? Even Musk and Tesla are bit players compared to that.

Nevertheless, Musk revealed exactly what I wrote about a couple years ago. When corporations get involved, they will swallow up the supply. Of course, in this instance, individuals will be volunteering to turn it over.

Here is what the situation with Tesla is:

The sudden bullish impulse came after Tesla’s CEO Elon Musk announced that customers can now purchase any of the firm’s electric vehicles using BTC. More importantly, Musk stated that the company uses an “internal and open-source software that operates Bitcoin nodes directly.”

So Tesla is running Bitcoin software on their computers already. I wonder if this means they are mining.

Leaving that aside, we get this interesting tidbit.

Such infrastructure allows it to retain the BTC obtained from the car sales instead of converting the tokens immediately into fiat.

Source

There it is clear as day. Tesla will not have to sell the Bitcoin it receives as payment. Instead they can just keep accumulating it as people use to buy the vehicles. As long as they have enough cash to meet their obligations, all Bitcoin, as least the portion that is GP on each vehicle, can be held as such.

From a supply and demand position, it is easy to see what this can do. If we multiply this out by a few dozen Fortune 100 companies, we could see things getting really scarce.

Naturally, this will be great for the token price and those holding it presently. It will not be, however, good for those who do not have any Bitcoin. As companies like Tesla eat up more of the supply, the few crumbs will be left over for the general public.

Source

Just think of what Amazon could do with its $385 billion in sales and $21 billion in net income in 2020 alone. Consider what things would look like if they received a few billion in sales paid for with bitcoin. They could just hold onto it and not miss a beat.

We already know the new supply is being consumed by the major institutions. Now we are going to likely see the start of companies getting paid in Bitcoin and just holding onto it. This is why the idea of this currency as a payment system is misplaced. The velocity of Bitcoin is going to slow down to near zero.

Once it is in the hands of these major corporations, it will not likely leave.

They see it as a store of value and are going to use that to prop up their balance sheets. There is nothing wrong with this because it certainly will serve that purpose. As a Tesla shareholder, it is going to be good to get more BTC on the balance sheet. That will only strengthen it going forward.

The same will hold true for a lot of other companies once they opt to get involved.

Of course, who is going to be getting Bitcoin? People with money. This is going to leave most of the planet out of the game. It will be worse than gold since more of that is being produced each year. With Bitcoin, it is a declining amount over time. Presently, there are only 900 Bitcoin mined a day.

So once again, we see people getting exactly what they wanted yet missing the point completely. Sure, many are going to make a lot of money. However, if Bitcoin is going to serve as a foundation for a new financial system, where all economic activity is built upon the collateralization of the currency, guess who is going to be holding it?

Oops.

Thus, we are possibly looking at a new financial system that is built upon the assets that are owned by Wall Street and major corporations.

Actually, isn't that the system we already have?

A great deal of effort was spent to get back exactly where we started.

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Now Corporate America Is Going To Take All The Bitcoin

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