Tesla and Bitcoin: The Unbeatable Way to Dominate the World

Why you are gonna be the greatest beneficiary.

If no macro-economical phenomenon happens, Tesla and Bitcoin are gonna be the stars of asset management.

In different contexts, and with different types of allocation, these two financial assets may be the next trillion-dollar attractions. In the documentary ‘Before the Flood’, Elon Musk told Leonardo DiCaprio we would need at least 100 factories to supply all the future demand for EVs (Electric Vehicles). So it’s urgent to have other players in the field to complete the demand. Competition is needed.

Yet, Tesla created technology on wheels device. They are ahead with almost every technological advance.

Like Apple, which revolutionized mobile devices, Tesla is very well positioned to dominate several sectors, like the auto industry, the energy industry, and maybe other sectors, as they evolve to a service on-demand type of business.

On the other hand, in 2012, Michael Saylor published the book ‘The Mobil Wave’. The Mobile Wave argues that the changes brought by mobile computing are so big and widespread, that it is almost impossible for us to see it all, even though we are all immersed in it. Michael basically said that Apple, Facebook, Amazon, and Google are gonna eat the world. He argued that everything we have physically is gonna be dematerialized.

Apple happens to dematerialize all mobile devices. Google happens to dematerialize all libraries and videos. Facebook happens to dematerialize all our social relationships. Amazon happens to dematerialize the storefront.

What about Bitcoin?

Modern technology owes ecology an apology

In one of his latest interviews, Elon Musk was asked about Tesla’s motto and Elon answered you should look back from the future and ask what’s the fundamental good of Tesla. It should be accessed as by how many years did Tesla accelerated the advantage of sustainable energy.

This was probably the main reason I fell in love with this company. Their motto.

Having a powerful company like Tesla rising up and reaching a huge success in their attempt to change planet earth for the better, how could I be indifferent?

However, now that I deeply studied Tesla and joined the shareholders' group, I constantly think about the automakers and the bearish people that constantly see the company in a totally inverse perspective.

I read all their arguments and beliefs. Trying to understand why they denied a so clear (at least for me) reality.

One day, I finally forgot all the nonsense and start focus on keeping investing in Tesla. And today I’m still doing it.

Legacy automakers need to switch to forward-thinking, major investments, and extreme dedication.

However, what I see is the auto industry in a stagnant state of EV denial.

In a very deep perspective about this issue, Carolyn Fortuna wrote an article where she identifies The 5 Stages Of EV Denial & Why Tesla Stays Ahead:

• Stage 1- Deny the problem exists: General Motors and Ford, the major automakers in the USA announced the production of 5 million SUVs and pickup trucks in 2026, but only 320,000 of them are gonna be EVs;
• Stage 2- Deny responsibility: General Motors and Ford Motor Company claim to be invested in an electric future but are leaving it to dealers to pay for upgrades that can amount to tens of thousands of dollars;
• Stage 3- Downplay the threat: The Obama administration had predicted that doubling average car and truck fuel efficiency from 2011 to 2025 would cut greenhouse gas emissions by 6 billion tons. Gasoline/diesel auto manufacturers are smiling at recent US executive office (Trump Administration) and oil events reversing its parts with a pattern of environmental deregulation;
• Stage 4- Attack the solutions as two costly: In 2017 Daimler warned they would have to reduce costs by outsourcing more component manufacturing — threatening German jobs. On the other hand, the US Office of Energy Efficiency and Renewable Energy says that plug-in EVs can save consumers money, with much lower fuel costs on average than conventional gasoline vehicles;
• Stage 5- It’s too late: The coronavirus pandemic is likely to cause carmakers to revisit their manufacturing strategies as consumers eat up savings and probably shift near-term automotive spending to used cars. So, a walk to EVs, although slow, it’s the cheaper option. Yet, if we think about self-driving cars, more reliable, cheaper, service on demand principles, high efficient and long-range powertrain, seems to be a happy destination.

Tesla has been able to zoom ahead of fossil-fueled automakers due to its dedication to creating a sustainable transportation network. With the backdrop of COVID-19 alongside the climate crisis, a new melange of courage, caution, and chance is warranted, and Tesla is seeing renewed confidence from investors. It’s time for legacy automakers to step back from EV denial.- Carolyn Fortuna

In April, Volkswagen held a 3-days meeting with 31 senior executives, for what they called ‘Mission T’.

‘T’ for Tesla. Volkswagen made an event with the goal of projecting VW, in the next 6 months, to a place equal to Tesla, by the year 2024.

We have to give a lot of credit to VW to acknowledge the space between this gigantic automaker, against an ex-tinny technological company everybody talks about.

Volkswagen needs to change: From a collection of valuable brands to a digital company that reliably operates millions of mobility devices worldwide.- Herbert Diess, VolksWagen CEO.

However, if Elon transformed into a housefly and flown into that meeting, what would he think about seeing 31 businessmen in the same room, trying to solve problems that scientists and technologists accomplish in Tesla’s laboratories since July 2003?

I can tell you Elon Musk is fond of saying that meetings are what happens when people aren’t working.

There is a sort-term conclusion I can take from all these: Legacy automakers, even making all efforts possible to rethink, reinvest and remodel all industry, I’m afraid it won’t be enough.

The big dilemma I so many times reflect on, is that we are in a disruptive innovation era. And generally, when it happens, some companies thrive in the new environment, while the major older one’s parish.

The future will tell us what will happen.

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?

Final thoughts

People like me always see the light at the end of the tunnel.

Maybe that’s one of my faults.

However, humankind always solved their own problems, as massively difficult they seemed to be.

Tesla and Bitcoin are real game-changers. They have the potential to radically change the world as we used to see.

One thing I’m absolutely sure of. The absolute motto of these two human beings, Elon Musk and Satoshi Nakamoto was to make Planet Earth a better place.

I can only wait patiently for the stars to align themselves, for karma to be in the right place, and for luck to bless the brave.

These two assets are purely deflationary. Meaning that the price of goods and services will tend to decline.

With Tesla and Bitcoin rising up, there will be one beneficiary above all.

You.

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