Elon Musk moving Tesla Cash into Bitcoin. Good idea?
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Well guys there is some serious rumors that Tesla is going to Invest into BITCOIN. So I had to make a video about my thoughts are on this rumors that Tesla is going to move cash into bitcoin. I will tell you if its a good move for Tesla to move all or some of their cash into bitcoin.
Hope you enjoy this video!! It would be a big move for both Tesla and Bitcoin if Elon Musk decides to move cash from Tesla’s balance sheet to Bitcoin. But I would love to hear your thoughts on these rumors that Tesla might move money to bitcoin. Do you think it’ll be a good move for Tesla? Or do yo think it’ll be a bad move for Tesla? Leave me a comment with your opinion.
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Well guys Welcome into today’s video hope you’re all having a great day out there as always all right we got to talk about tests they have over $14 billion on their balance sheet right now in cash and cash equivalents which is in USD okay there are serious rumors now starting that Tesla could move that $14 billion into bitcoin yes you heard me right Bitcoin which Bitcoin has been in the news lately because Bitcoin just reached a new all time high very recently, okay.
Now, first off, like you know, when you hear something like this, you got to think to yourself, would this even be legal? Like Could you just like move like $14 billion in cash into bitcoin? And the truth is, I’ve been in the stock market for over 12 years, I read these documents all the time,
I’ve never seen anything that says you can’t move your cash balance from basically just like USD into bitcoin. Like I haven’t seen anything out there about that. So this should actually be perfectly legal.
Like if Elon Musk wanted to do this, he could do it without any legal ramifications from what I have seen. Okay, so in this video, we’re going to do two things. Okay. The first is we’re going to talk about while these rumors are getting really serious about Tesla moving all of its cash or a portion of its cash into bitcoin, okay, and number two, we’re going to talk about it I think it’s a good idea for Elon Musk to make this move and go ahead and move Tesla’s cash into bitcoin.
We’ll talk about that from my perspective as you guys know, I am a Tesla shareholder I have over a half million dollars in this stock I’m obviously invest in this so whatever move you must make with Tesla’s cash balance it’s very important to me right this was a stock I was buying heavily in 2019.
Obviously this matters to me and and so I’ll definitely share this with you guys here hope you guys enjoy this video as always, if you don’t mind smash that thumbs up button that lets me know you guys enjoy video like this also helps out the YouTube channel a massive way I appreciate all you guys in the thumbs up squad, you want to join stock hub, it’s absolutely free to do so that’s the best and biggest discord chat in the world.
And also by the way, I think we have a cryptocurrencies tab and a Bitcoin tab in there as well. So if you want to chat about those sorts of things, you can okay and by the way, some of the answers in this video might surprise you. Okay, let me just put it that way. All right. All right, guys.
So first part is number one. Why are these rumors getting all serious? Okay, cool. all starts with this guy, Michael J. Sailor Michael J. Sailor is an American entrepreneur and business executive who co founded in leads micro strategy, a company which provides business intelligence, mobile software and cloud based services. Okay, this is where everything starts with this guy. Okay. You know why?
Because basically, he did something that was unheard of. All right. This guy on micro strategies quarterly earnings conference call in July of 2020. This sailor guy, okay, he announced his intention for micro strategy his company to explore purchasing Bitcoin instead of holding cash.
The following month micro strategy use $250 million of its cash stockpile to purchase 21,454 Bitcoins.
Micro strategy later added 175 million of Bitcoin to its holdings in September 2020 and another $50 million in early December 2020. On December 11 2020, MicroStrategy, announced that it sold $650 million in convertible senior notes, taking on debt to increase its Bitcoin holdings to over $1 billion worth okay. This is big.
On December 21 2020 MicroStrategy announced their holdings include 70,470, bitcoins purchased for $1.125 billion dollars at an average price of $15,964 per Bitcoin sailor who controls 70% of MicroStrategy shares dismissed concerns by observers that the move is turning MicroStrategy into a Bitcoin investment firm or exchange traded fund like an ETF Okay, now this stock does nothing for years as MicroStrategy stock ticker symbol MST Gar and then basically after they make this investment, the stock just goes crazy.
Okay, like literally this stock does nothing for years and years and then they put all this money in Bitcoin and the stock goes absolutely booming, that’s okay. And by the way, that stock if Bitcoin continues to rise, and rise and rise over the coming years, that stock is going to continue to rise and rise and rise as long as they don’t sell other Bitcoin, like almost regardless of whatever happens with the underlying business that that company has, like literally, as long as Bitcoin continues to go up.
That stock is going to continue to be a beast. This is absolutely like just crazy. Okay, Bitcoin here today is trading right around $27,000 per every one bitcoin out there, okay? It’s been a Heck of a year for Bitcoin from 5000 something dollars back in March just 27,000 Whoa, okay, but here’s where things start getting really interesting.
Here’s where we tight you on musk Tesla is Michael sealer guy and everything together, okay? Elan musk puts out this funny meme okay on this Twitter’s hilarious gazes me trying to live a normal, productive life. And obviously, you know, if you have some common sense, you get what’s going on there. Okay. Very funny. Okay. But there’s Michael Saylor guy who had just told you about, okay, he responds to Elon Musk.
He says, if you want to do your shareholders $100 billion dollar favor, convert the Tesla balance sheet from USD to Bitcoin, other firms on the s&p 500 will follow your lead in time, it would grow to become a $1 trillion faith. Okay. Now, this gets interesting because he’s talking about the whole balance sheet.
Okay, we’re just going to talk about what if they converted some of their cash to Bitcoin? Okay, we’ll talk about that in this video, rather than the entire balance sheet. That’s a whole different subject and complicated subject, okay. And you might have thought, okay, that’s where things come to die. Okay.
He just says that, and then that’s kind of the end of it. But Elon Musk responds, he says, or such large transactions even possible, okay. Now, you don’t ask questions like that. If you’re not serious about it, or if you’re not at least contemplating. Maybe this might be a move worth making. And we know Elan Musk is a very outside the box thinker. Okay.
So, you know, for you, I must actually seriously contemplate this and consider this. It’s not out of the realm of possibility at all. And this kind of proves it here. Okay. Now, Michael seila response. He says, Yes, I have purchased over $1.3 billion in Bitcoin in the past months, and would be happy to share my playbook with you offline from one rocket scientists to another. Okay. And so that’s what the conversation obviously ended there. But hey, maybe it went offline from there. And they’ve actually been chatting back and forth since then.
We don’t really know what’s going on. Okay. Now, this is epic. Okay. Because here you have Elon Musk. Elon Musk, at the moment, is arguably the most influential businessman in the entire world. Literally, I cannot think of one more influential businessman in the world right now.
He’s like the second richest man in the world, right? But it’s not just that he’s like, super rich, and he’s got this huge net worth and this company that’s had a stock price go crazy. Okay. It’s the cool factor as well. Okay. So you put that together. He’s the most influential man in the entire world when it comes to business by a mile. I don’t even think it’s really close between him and whoever’s number two, okay. And so if he did a move like this, yes, other big companies will follow.
They don’t all follow overnight, and they’re all like everybody just all sudden, you know, is buying Bitcoin. But over time, yes, they will follow more and more than Ilan did this case. I mean, you know, Michael sailor, he had a great way of putting this he says, we just had an awful realization that we are sitting on top of a $500 million Ice Cube that’s melting, okay, basically saying that if you’re holding cash, it’s just an ice cube that’s melting over time. Okay. Kind of truth.
Okay, I’ll be honest, it’s kind of true. And what if Elon Musk starts saying things like this, if you must make this move and start saying things like this, all of a sudden, immediately overnight, Bitcoin has, like, more respect in honor than any at any point in its history in by a mile. Okay? Like it changes things. Like so big, I can’t even explain it.
It’s the biggest thing that could literally happen to Bitcoin would be Elon Musk actually converting Tesla’s cash balance or portion of it to Bitcoin rather than USD. It’s the biggest thing I can’t think of literally one thing that would be bigger for Bitcoin than that other than maybe the dollar collapsing and not like that would be just bad overall. Like literally, I can’t think of anything that would be epic, okay. In other companies would follow over time.
And think about some of these other companies, the type of cash balance that some of these other companies have, okay. Apple, Apple usually holds like $200 billion or so in cash, like ridiculous number, right. You have Google McDougal, which in its latest quarter had $132 billion dollars worth of cash and cash equivalents.
You have to FB Okay, Facebook, with over $55 billion in cash, just as a latest quarter, you have Amazon with $68 billion worth of cash just in the latest quarter. What if all these type of companies start switching over some of their cash to Bitcoin? Imagine how epic in huge that makes Bitcoin over time, Microsoft $137 billion worth of cash on their balance sheet.
A lot of these companies guess what those cash balances are kind of going down over time, not down in terms of like they can’t add more because they just keep adding more money, but is $137 billion going to be worth the same $137 billion 10 years from now, these are questions you really got to ask yourself right? Okay, and so this would be unbelievable for Bitcoin if Elon Musk actually put some of Tesla’s cash into bitcoin game changer for Bitcoin for ever okay absolutely insane bitcoins market cap here today is right around 500 billion Okay,
I’m telling you if news came out that Tesla’s converting billions of dollars to bitcoins, bitcoins market cap is gonna go Caray see, okay, absolutely crazy over the coming months and years ago, something like that happened, okay. I mean, just absolute crazy, by the way, what happened to ripple? Okay, completely random, but I just saw it was down like 45% in the past seven days, I don’t track kryptos like, you know, religiously or anything I got I barely keep up with kind of like Bitcoin aetherium.
So Can somebody explain to me what the heck happened? a ripple would be down 45%. Seven days? I would love to kind of hear that. Okay. Let’s talk about cash versus Bitcoin for a moment. Okay. So cash, if you hold cash in your balance sheet in your Tesla, or Google or Apple or any of these big companies, it’s very stable, right? Cash is very stable. It’s not like tomorrow, I tried to go buy a gallon of milk and like, I gotta pay $50 in the next day, got to pay $1 or something like that, right? That’s not how it works at all. Okay, like cash is very stable.
However, it does get devalued over time. Okay, cash does get devalued over time. Like, you know, $1 is not the same as $1, you know, 50 years ago or 100 years ago, it just slowly becomes worth less. Okay. I mean, for example, imagine having $100,000 worth of stocks in 1920 go back 100 years ago, okay. If you told somebody you had $100,000 worth of stocks in 1920, they think you are like so rich, it’s ridiculous. Okay,
like they’re like, can’t even wrap their heads around it. You have $100,000 in stocks. That’s cool. Crazy. Okay. That’s what people would say to you, right? And like nowadays, think about it, like you have $100,000 in stocks, like somebody Pat’s in the back and they say, good start, man. You’re doing all right for yourself.
Okay. It’s just so different, right? That’s the dollar for you. Okay. And so cash is a bit I agree. It’s a very slowly melting ice cube. That’s what cash is, at the end of the day. It’s not like it just evaporates and it’s super unstable.
It’s not it’s just to be quite honest, it’s a very slowly melting ice cube.
Okay, he’s all this Michael sailor guys. 100%. Right. He has a great analogy in my personal opinion, okay. Now Bitcoin, on the other hand, very unstable, very unstable, like, you know, look at bitcoins past, you know, three, five years, whatever, look at a chart, like it’s been up mostly, but at the same time, it’s been crazy, like, you know, it went from like, nothing to like 20,000 from 20,000 to like, 3000 from 3000 to like, I think 10,000 10,000 I think we went down to like 5000 like, you know, look at the chart, it’s very unstable. However, Bitcoin increases over time.
So you know, the bottom line is like, like look at bitcoins history, it’s just been increasing and increasing and becoming worth more and more in Meanwhile, dollars over that same amount of time have become worth less and less Okay, something very important. Like if you put $100,000 into bitcoin five years ago, you’re crazy rich today.
I mean, crazy rich like literally just $100,000 in Bitcoin five years ago, okay, like go back look at what Bitcoin was in 2015 and look what Bitcoin has today. Okay, you’re crazy rich. Okay, nevermind, you put $100,000 in Bitcoin 10 years ago, you’re stupid rich. Okay, somebody do the math for me please somebody go back and look at what Bitcoin was 10 years ago and tell me if you put $100,000 in Bitcoin 10 years ago, how much money that’s worth today.
I really would love to see that number. I’m guessing it would be 10s of millions of dollars if not hundreds of millions of dollars if not a billion plus, like I’d have no clue what the number is. I just know it would make you stupid rich. Okay, absolutely insane. Okay, so that’s cash.
We know it’s stable, but we know devalues over time. Bitcoin very unstable, but man it’s been going up and up and up over time. Okay, so now for my opinion on this as a Tesla shareholder. Okay, so first off if Elan musk really believes in Bitcoin, he loves Bitcoin. He loves bitcoins future and all these sorts of things. Okay. This is very important. He has to trust Bitcoin.
He has to love Bitcoin for the long term, he has to be one of those believers that believes Bitcoin is going to be potentially one of the most important things it’s like digital gold, okay? he if he views it like that, and on top of that, he believes Tesla will profit each and every quarter from here on in meaning he’s got like a 98% probability that he thinks Tesla is going to be profitable from here on it. Okay? If those two things lined up, then I say put half the cash in Bitcoin put $7 billion of that cash in Bitcoin. If Elon Musk really believes in it that much, I will trust him with that decision. Okay.
If he really believes test is going to be profitable from here on in, I have no problem with putting half the money in Bitcoin, okay $7 billion. And you know, here’s the thing about this, okay? It’s not about necessarily that 7 billion turned into 14 billion and then 21 billion and then 28 billion and then 35 billion and then 42. That’s not even like, the biggest part, okay? If Bitcoin goes up in value, you win. It’s literally that simple.
Because we know if you got $7 billion in cash over the next 1020 years, that $7 billion is worth a little less and less and less. But if you have $7 billion in Bitcoin over the next 1020 years, literally as long as it goes up at all, it doesn’t have to, it doesn’t have to go up 1,000% or 10,000%, like some people are predicting Okay, literally, if it just goes up at all, you win.
And it’s as simple as that you must have the ball is in your court in this whole situation. I can tell you I got your back in this if you really believe in this man, I got you back. 100%. So guys, let me explain how big this is. Okay, let me explain exactly how this works.
Okay, Tesla buys billions of dollars worth of Bitcoin and Elan musk makes that purchase okay? Here’s what ends up happening thins investors meaning people that have been on the fence or maybe even negative on Bitcoin in the past start to say, Hmm, maybe Bitcoin is here to stay? Maybe this is something to be serious.
And those people that have been very negative on Bitcoin in the past all of a sudden start to consider maybe this is an investment I want to make for a certain portion of my money. Okay. And then those people that have been super negative on Bitcoin aren’t really negative anymore.
They kind of moved to the fence at that point. Okay, so imagine how much money is on the fence when it comes to Bitcoin right now we’re it’s people that have significant amounts of money but they won’t buy bitcoin yet. Just because it hasn’t gotten to that mainstream level that they need to have it out okay. No different than if you look at like Tesla stock in the past right.
Tesla stock was a stock that a lot of people didn’t want to get in for a long time. But over the past year or so as Tesla is beginning to get more mainstream also all these investors are pouring into Tesla and Tesla stocks gone crazy. Okay, so like, as soon as Tesla buys if they were to buy in Ilan must make this decision fence investors.
Start take Bitcoin really, really, really serious crypto investors have the biggest backer ever and then at that point, like there’s never been anything you could say about Bitcoin or crypto in terms of a person backing it as big as like,Ilan Musk, just put blah, blah, blah, amount of money of Tesla’s balance sheet into bitcoin.
Okay, there’s nothing as big as that. I mean, absolutely nothing in the past, you had to tell the story about Bitcoin and why it’s like, you know, there’s a certain amount of bitcoins that will ever be produced. And you had to kind of go into this whole story on why, you know, money basically like if you if you have $1, it only has value essentially, because we’re giving it value to that and had to tell this whole like, elaborate story, okay? It’s much easier to say, Elan musk just put billions of dollars into bitcoin.
What do you think about Bitcoin? Okay, that’s a much easier argument to make to go through an hour to hour about Bitcoin and why it’s so special and transactions and all those sorts of things. Okay. So that would be huge for telling the story about Bitcoin and for crypto investors out there. Okay, money is going to flow like crazy to Bitcoin.
ETFs If this happens, by the way, money is already starting to flow like crazy to Bitcoin ETFs you know, if I turn on CNBC, or one of these, like, you know, financial news channels, and watch it for an hour or two, like now I’m starting to see at least one of these type of commercials for like a Bitcoin ETF or something like that almost every single time if I watch one of those channels, okay, so it’s slowly starting to get more mainstream and mainstream and when I say it, I’m talking about Bitcoin.
In general specifically, okay, money would flow like crazy as ETFs if Elon Musk went and bought billions of dollars worth of this, okay, with Tesla’s cash, okay, then you’d have small companies, mid sized companies and large companies start to hold some Bitcoin and I feel like this would be a slow movement into it.
Okay, I feel like this would be a 2021 through 2026 type move where it’s like, you know, over four or five year period, more and more companies will start to buy some Bitcoin with their cash Okay, I don’t think if Elon Musk and Tesla goes out and buy billions of dollars worth of Bitcoin it’s not like also an apples like okay, we’re gonna go put $100 billion in Bitcoin that’s not the way this works. Okay.
But believe me, if Bitcoin stabilizes more and more starts to uptrend uptrend, and Tesla’s making bank on this, every single CEO out there is going to be questioned by their shareholders and by analysts on why are you just leaving your money in cash?
Every single one and every single CEO out there will start to feel the heat and the pressure As more and more companies start to adopt Bitcoin, if that happens, okay? And every single one of them will have to answer and say, You guys have $5 billion of cash sitting on balance sheet right now, and you’re doing nothing with it, why not move some of that over to Bitcoin because this company over here that your competitor did it, and now they have more cash than ever to compete against you.
Okay? And so you see, all this starts working all sudden, you start feeling all this peer pressure to do it as well. And when CEOs start feeling all this pressure, they start making moves, because if they don’t make that move, the Board of Directors could end up voting them out because the shareholders will end up starting to vote the board of directors out because if they don’t like the moves that are being made in a company has a huge cash cash balance.
They’re watching Bitcoin continue to go up, they’re watching these other tech companies thrive because they’re doing that. Boom, all of a sudden, the decisions made Okay, yeah, we’re gonna put X amount of dollars into bitcoin.
Okay, that’s the way it works on all these things across the board as soon as that peer pressure comes on from analysts and from Wall Street and from the investors CEO start making moves real real quick. Okay. So that would end up being a multi year kind of, you know, slow move into bitcoin for companies out there. Okay.
And at that point, okay, what do you think is going to happen to the price of bitcoin? You know, I’m not, I’m not even somebody that you know, is directly invested in Bitcoin, I do have an investment that is kind of like indirectly correlated with the price of bitcoin, but I actually don’t have a direct investment. I don’t actually own a Bitcoin. Let’s put it that way. I do have some stocks out there that might prosper.
If Bitcoin prospers, okay? But bitcoins gonna go up massively. If this starts playing out, like like bitcoins, like there’s just like, very simple like bitcoins gonna go up massively over the coming 510 15 years,if they get a backer like Elon Musk, I mean, regardless whether Elan musk backs Bitcoin or not.
I mean, it’s very possible Bitcoin could have a tremendous next 510 years. But if Elan musk backs this thing, Oh, my gosh, I mean, you’re talking about putting Bitcoin on steroids, okay, as simple as that, like the price would absolutely skyrocket over time. There’s no doubt about that.
And it’s not just that, it’s that over time, the price would likely stabilize, okay, so we would likely have a massive movement over let’s say, the next 10 years, and then it would start to stabilize, okay, like doesn’t mean that stops going up or something like that, or stops going down.
But it would likely stabilize over time, as as more and more money in it, kind of like, you know, the s&p 500 is somewhat stable, okay. It’s not like the s&p 500 goes up 100% one year, and then next year is down 64%. And then it’s up, you know, 200%, then it’s down, you know, 65%.
That’s not the way the s&p 500 works. It’s so big now. And it’s so widely adopted, that is fairly stable, right? And it might make a 10% 15 20% move here or there, but it’s not like ridiculous moves all the time. Okay, it’s fairly stable. And so that could happen with Bitcoin, if that happens, Bitcoin will be recognized as digital gold. It’s just it’s literally as simple as that.
And, you know, this is something obviously, so people that have been super bullish on Bitcoin for a long time had been saying, okay, they’ve been saying, you know, bitcoins, essentially digital gold. Well, that’s fine. If you believe that if you’re really on the inside of this, and you understood Bitcoin really well, and you understood kryptos. But for the masses, it’s never been viewed as digital gold.
But if the price continues to go up and up and up over time, and stabilizes, yes, Bitcoin will be recognized as digital gold. And that’s, that’s all Bitcoin ever needs. You know, that’s all it ever needs. So, you know, I actually support Elan Musk, if he wants to put a portion of the money into bitcoin, I do support it. Okay, whether he does it, it’s in his court now. We’ll have to see. But yeah, I do support it if he wants to make that move.
And honestly, I would support most of my companies, if they want to make a move like that, you know, where they want to put a portion of their cash balance and Bitcoin if they really believe in it like that, in their company that is expected to be profitable and build the cash over the coming years. I have no problem with that. I respect that at the end of the day, but they have to really be believers.
And it has to be a business that it’s going to be a cash generating machine and a cash flow machine and future years. Okay, it’s getting crazy guys. It’s getting pretty dang interesting. I would love to hear your guy’s opinion on this. This is a huge subject to any of my fellow Tesla shareholders.
Let me know in the comments how you feel about if Tesla was to move a portion of their cash balance, let’s say into bitcoin. I will I’ll be reading through the comments. I would love to hear your guys two cents on this because this is a big crazy subject. Okay? Anyways, hope you guys enjoy this.
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