Tesla and Bitcoin: The Unbeatable Way to Dominate the World
By: Nuno Fabiao
Tags: Bitcoin, Asset Management, Tesla, Stock Market, Technology

Photo by Viktor Forgacs on Unsplash

The beauty of the free market: Everyone gets what they want

Bitcoin is a thing that you don’t understand until you do, Michael Saylor assumed.

In 2013, Michael tweeted:

#Bitcoin days are numbered. It seems like just a matter of time before it suffers the same fate as online gambling.

Yet, in the present day, about Bitcoin, Michael Saylor probably has the best line of thought I ever heard of. In an analogy to Facebook, he says it was pretty obvious Facebook would eat the world. They basically created a software network to pull all the social energy on the planet.

Bitcoin, on the other hand, is the first software network in the history of the world that can pull monetary energy on the planet.

Bitcoiners found something incredible and hugely valuable. They are pulling pure monetary energy to its network. And the fact that 80 or 90% of people in the world don’t agree with this perspective, is perfect for believers on Bitcoin, cause it’s a ‘cheap’ asset, for now.

Like in 2010, believers of Apple, Facebook, Google, and Amazon, are now seated in a pile of money. The same can happen with bitcoiners.

People are desperate to flee the currency because the money supply is expanding. And they’re pushing people to different stores of value. The Federal Reserve crowded everybody out of treasuries and sovereign debt with effective zero yields.

So, where do major players go to? Where will they invest their money on? Big Tech? Gold?

Nasdaq is pilled in 10 trillion dollars. Gold is also pilled in 10 trillion dollars. Apple is a 2 trillion dollar company, so we may interpret it as a store of value. However, for the last 3 months, Apple has been more volatile than Bitcoin.

Of course, we know that major investors don’t guide themselves by a 3-month chart. And Bitcoin is a just born asset.

S&P Dow Jones Indices, a division of financial data provider S&P Global Inc, said last Thursday that it will launch cryptocurrency indices in 2021, making it the latest major finance company to enter the nascent asset class.

Anna Irrera, from Reuters, concludes by saying the emergence of more mainstream market infrastructure has made the asset class more accessible for institutional investors, with hedge fund managers such as Paul Tudor Jones and Stanley Druckenmiller saying they include bitcoin in their broad investment strategies.

Normally, hedge funds, as the name implies, are funds that use advanced tools to manage the market. They hold long and short positions.

These positions were, therefore “hedged” to reduce risk, so the investors made money regardless of whether the market increased or decreased.

If you have big sharks like Paul Tudor Jones and Stanley Druckenmiller in the Bitcoin game, it’s because you are witnessing a massive shift in the asset classes, by one of the most successful investors alive.

One of the things I think general crypto analysts don’t do, or at least didn’t do, was comparing volatility levels between Bitcoin and Gold, the Nasdaq, Silver, bonds, Russel 2000, and so on. Generally, Bitcoin volatility is compared to Ether, SRP, Litecoin, or many other cryptocurrencies. That doesn’t make sense right now.

In 2010, nobody understood why they should buy Apple, Google, Facebook, or Amazon. Now, they are probably the strongest stores of value the market has.

So, why can’t you think the same thing about Bitcoin as a store of value?