Tesla (TSLA) announcing that it had invested $1.5bn in the cryptocurrency was an obvious boost to the BTC-USD price. The law of supply and demand is one constant we can rely upon.
The news is extra significant because Elon Musk of Tesla is now the third CEO to invest their treasury funds into Bitcoin, following Michael Saylor of Microstrategy and Jack Dorsey of Square
This illustrates the old adage that once means nothing, twice is coincidence and three times is a trend.
In all three cases we have a founder without explanation risk who gets past the conservatism of boardroom decisions about use of treasury cash – ‘cos they are the boss!
If BTC-USD price crashes to zero they will look dumb, but would you want to bet against these three entrepreneurs?
However as significant as that is, it is the story about Bitcoin and renewable energy that is the really big deal.
If you want to annoy a Bitcoin fan say something about how much coal is used per transaction.
However as explained in The Past, Present & Future of Bitcoin Mining “Bitcoin Mining moves to countries with real cheap electricity creation and a Bitcoin friendly jurisdiction.”
There is enough solar energy for all our needs – from cars to kettles and bitcoin transactions. The problem is transporting solar energy. The beauty of a Bitcoin mine powered by solar energy is that no transport is needed. All a sub saharan country (for example) needs is a bunch of servers connected to the Internet and to their solar energy farm (which gets cheaper by the day). I assume that story appeals to Elon Musk.
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