Tesla, a top 10 of Elon Musk’s Fortune 100 corporation, transferred 1,5 billion dollars of his treasury cash in early February to Bitcoin (BTC). The BTC was one of the richest companies in the world. Musk’s Bitcoin acquisition surprised traditional investors, now to understand the relation between their investment in Tesla and Bitcoin.
Today Tesla’s revenues are largely derived from the sale of excess renewable energy credits or RECs that in the next few years will dry up when competitors manufacture their own nullification vehicles and build RECs with the states that require them.
The company presented its proposal to the US SEC and that its investment policy has been updated in order to provide greater flexibility for diversifying and maximizing idle cash returns. Tesla said that, as part of this plan, she is investing in “alternative reserve assets such as digital assets, gold bullion [and] gold traded funds.”The statement goes on”:
“We invested a total of $1,50 billion in Bitcoin investment under this policy in the future to buy and maintain digital assets on time and long terms. In addition, in the immediate future, subject to applicable law and initially on a limited basis, we hope we will start accepting Bitcoin as a form of payment for our products which we may or may not pay on receipt.
The Bitcoin market has regarded Tesla recognition and development in cryptographics as an institutional validation for Bitcoin to be used as a value inventory.
Use of decentralized Bitcoin mining micro energy sources
Other Tesla companies manufacture and commercialize solar panels, solar roofs, and batteries.The batteries are used for the supply of electricity for domestic solar systems in their vehicles. The grid may be supplied with extra energy from domestic solar systems.
Residential solar systems can supply the grid with surplus energy. The local power company calculates the amount of power taken from the system based on the electricity bill of the customer.
Tesla Powerwalls can store the surplus energy and energy in your house and charge your Tesla electric vehicle, including the air conditioners.
Tesla’s microenergy sources can redirect excess energy to cryptomining activities. The surplus energy is either wasted or stored and sold pennies a dollar without crypto mining. Now Tesla and others can turn excess power into an instantly bankable, digital asset such as Bitcoin.
How to fit SpaceX
Many believe that the investment of Tesla in and the acceptance of Bitcoin as payment is an important signal in the direction of the company. We know that Musk also heads SpaceX, which in the next decade intends to establish a colony in Mars. U.S. dollars will not work on Mars, however, fundamentally. There are many problems with the extended time for communication between Earth servers and Mars servers. A reliable method of transfer of value between the economies of the planets will still need to be established.
Bitcoin offers a better solution to securely transfer value between planets on a trustworthy network in which 10-minute block times are beneficial instead of trouble. The colony of SpaceX can trade locally using a convenient local means of exchange and securely transfer this value home to the Earth without any intermediary or concerns regarding inflationary monetary policies. Bitcoin offers a more smooth and integrated way to integrate economies. Thus, colonies on Mars will probably run Bitcoin nodes using the Starlink Constellation of SpaceX.
Decentralized value internet server architecture
The transition to a digitally indigenous society from the analog world requires programmable money. The current system of fiat banking is archaic, inefficient and unable to meet the needs of a technologically advanced company.
The backbone of this development is bitcoin mining. In the decentralized newly forming economy, Bitcoin is the most recognized digital currency. Bitcoin has achieved critical network impacts and is the logical choice for a world currency that is digitally native. The internet of value — where value is as efficiently, cheaply and reliably transmitted as data now — is free of the control of any government or entity. The decentralized architecture incorporated within the Bitcoin protocol is used by Bitcoin to this end.
Bitcoin is criticized for being too heavily processed in mainland China. In addition, the decentralization of computing power will improve further since the benefits of transforming excess energy into digital assets via Bitcoin mining are recognized by more energy producers.
Bitcoin mining is needed for the decentralized economy to provide layer-one security, which central banks are now offering to the fiat-centered global economy. The decentralized economy is increasingly efficient and diverse. It has the most powerful computing network in the world to secure the base layer of the decentralized economy, upon which all other value transmission solutions are built. The development of a new, decentralized financial ecosystem is being witnessed. One days, without thinking twice about the time, you could send 20 dollars to your friends on Mars.