Photo = Reuters
Tesla added Bitcoin as an official asset to its asset portfolio. It has announced that Tesla vehicles can also be bought with Bitcoin. It is the first case that a major global automobile company recognizes Bitcoin as a means of transaction.
In 2018, “I don’t know where 0.25 bitcoin is all…”
Elon Musk, Tesla’s CEO, hasn’t been a bitcoin advocate for a long time. Until 2018, it was clear that it was rather distanced from the bitcoin craze.
In 2018, Musk CEO said, “I only have 0.25 bitcoin,” he said. “I gave it to me in the past, but since I don’t manage it separately, I don’t know where it is now.” As for the cryptocurrency mining process, he said, “The power wasted too much.”
However, the tone of what CEO Musk said about Bitcoin has changed gradually since then. In 2019, in a conversation with the investment company Arc Invest, he said, “I can see the advantages of digital currency such as virtual currency. It is quite interesting,” and “It can be a valuable means of passing money.”
Until then, Musk’s CEO drew a line about the possibility of connecting the Tesla business with virtual currency. This is because there is no guarantee of the results compared to the cost of the mining process. “It’s not a good idea to spend Tesla’s limited resources on cryptocurrency,” Musk said. The focus was on the technology base rather than the asset profitability of cryptocurrency.
It was similar earlier last year. In a podcast in January of last year, CEO Musk said, “When it comes to bitcoin, it’s not one way or another.” Regarding Bitcoin, he said, “It seems that it is used a lot in transactions outside the boundaries of the law,” he said. “Bitcoin’s utility itself has increased because of this.”
“Bitcoin can replace cash,” Musk said at the time, but I don’t think it will replace cash as a major payment or store of value.
“Are there massive transactions with Bitcoin?” A sudden change in tone
Musk’s CEO has increased his remarks on cryptocurrency since mid-last year. On Twitter, I posted several meme related to cryptocurrency (a picture that is popular on the Internet). He also uploaded a composite image containing the content that’Bitcoin seduces me to live a normal and productive life’.
In December of last year, CEO Musk had a public discussion on the issue of converting Tesla’s cash to Bitcoin via Twitter. Michael Sailor, CEO of MicroStrategy, recommended such a plan. Sailor CEO is a well-known Bitcoin advocate in the marketplace. Last year, a significant portion of MicroStrategy’s cash assets were converted to Bitcoin.
Musk and Michael Sailor on Twitter
Sailor said at the time, “If Tesla’s dollar-denominated cash holdings are converted to bitcoin, it will bring a profit of $100 billion to shareholders.” Musk’s CEO asked, “Can such a large transaction be done with Bitcoin?”
At the time, CEO Musk asked Michael Sailor, CEO of market intelligence company MicroStrategy, if it was possible to make large-scale transactions with Bitcoin. It was a question about what Sailor said, “If Tesla’s cash is converted to bitcoin, it will bring enormous profits to shareholders.” Sailor’s CEO said “yes.”
“I’m a bitcoin advocate” for 2021
Musk’s CEO has since asserted himself as a Bitcoin admirer. On the 29th of last month, the hashtag’Bitcoin’ was added and deleted when it received the media attention.
Recently, through the social media clubhouse, he said, “I’m a bitcoin supporter,” and “I think Bitcoin is on the verge of being widely accepted by the established financial sector.”
Earlier this year, Tesla changed its investment policy to be bitcoin friendly. Tesla informed the US Securities and Exchange Commission (SEC) that Tesla recently purchased $1.5 billion worth of Bitcoin (approximately 1,681.5 billion won). It also revealed a policy that it can further convert existing assets into digital assets such as virtual currency.
After the announcement of Tesla’s policy, the price of Bitcoin has skyrocketed. It jumped from $3,8871.4 to $46,000. It is not known how much Tesla has benefited since this announcement. This is because Tesla has not revealed when to buy Bitcoin.
Musk and Michael Sailor on Twitter
Tesla said in January that the board of directors made a decision, but did not disclose when the board was held or when to buy bitcoin.
Reporter Sun Han-gyeol [email protected]