So, Tesla and Bitcoin. Let's now finally talk about Tesla's
purchase of 1.5 billion dollars worth of bitcoin. What is behind this move, and why is the mainstream media so negative
about it, calling it an environmentally dirty purchase? Because the media cares so much
about the environment? Yeah, good one. No, they have certain interests of course, and we are going
to show you why these interests are certainly not your best interests. We are also going to argue that Elon's bitcoin purchase
was a genius move, explaining why the idea, that Bitcoin is bad for the environment
is a BS argument, and for those who are new to cryptocurrencies we are also going
to explain what bitcoin actually is and why it's so awesome. There's a lot to talk about, so stay tuned! Before we start, we have to say the usual disclaimer, we are not professional
financial advisors, and everything we say in this video, is just our opinion.
We could end up being very wrong, and
please always make your own research before investing. Now that this is out of the
way, let's get started. It was absolutely clear that this
was going to make high waves. Tesla, the company that wants to accelerate our transition to sustainable
energy, the company that wants to reduce our CO2 emissions, the company that wants to combat global
warming, is buying dirty dirty bitcoin. Let's now analyze a bit more in detail what's behind
this argument and why it's a total BS argument, which has only been put out by the media, so that you
hate bitcoin, so that you won't invest in bitcoin, and so that you will stay a good and well-behaved working drone
and will remain indebted to the banks for your entire life.
So we think we don't have to introduce Tesla and Elon Musk too much, we all
know their mission and the amazing things they have already accomplished. Single-handedly they have forced the entire automotive industry,
and only they, no one else, to finally switch to electric cars. Everyone is now going full
frenzy on electric cars, even GM and Toyota and the German carmakers now plan to completely
switch to electric cars, and all this just because of Tesla.
Then Tesla is also producing batteries for renewable energy
power plants, and Tesla solar is growing rapidly as well. So Tesla is together with SpaceX and Elon's other ventures
really the most disruptive company of our time. It just completely disrupts the whole automotive industry and
the energy sector and probably many more industry sectors. And bitcoin? Well bitcoin is a decentralized digital currency, an
open ledger where all transactions are visible for everyone. Where Tesla is extremely disruptive to the aforementioned industry
sectors, bitcoin is extremely disruptive to the financial world. Bitcoin basically makes banks obsolete. It gives people complete financial freedom over their financial holdings,
without the need of a middle man, which is often the bank nowadays.
With bitcoin, you can send money anywhere in the world, without
being tied to governments or without needing approval. It cannot be controlled by governments or banks, and
you have complete total freedom over your money. Now, let's all think together. Do you think that governments and central
banks would like bitcoin very much? Hmm….very difficult question indeed! Would central banks like it, if suddenly everyone now could hold an asset
that appreciates in price over time, rather than one that depreciates? Would central banks like it, if suddenly people wouldn't
get poorer all the time due to rampant inflation? The same banks which see printing money
as the solution to everything? Well let's take a look at the
US dollar M1 money supply. M1 is in short all the money supply
that is circulating around. We can see that there was a moderate increase
until the financial crisis in 2008, when central banks discovered that money printing
can make all the problems go away. The total money supply increased from 1.5 trillion to 4
trillion in the timespan from 2009 until early 2020.
But then the covid crisis came,
so what did central banks do? That's right, print even more money. Thus, the money supply skyrocketed from 4 trillion
to almost 7 trillion in only one year. It almost doubled. DOUBLED! DOUBLED. IN. ONE. YEAR. What does that mean? That dear viewer, means that the
US dollar is being devalued. But does this benefit you? Well, if you hold US dollars in
your bank account, this is of course not so good for you. The excessive money printing leads
to an ever increasing inflation. Of course, for the governments this is
perfect, because they have huge debts. The debt of the USA is currently standing
at 27.928 trillion dollars. If suddenly this money is only worth half, then consequently this
also means that the national debt has effectively halved, which of course Uncle Sam really likes a lot.
But for average Joe, this
is of course not so good. His money basically is worth less,
and he can buy fewer things. One dollar can now buy you 20x less, yes,
20 times less than it could in 1933. And this is one human lifespan. So because your hard earned money is worth less and less, you are
forced to take up huge loans from banks, in order to buy stuff. Because now suddenly every mediocre apartment seems to be costing 1 million
dollars or more, but of course the wages didn't rise as fast as inflation. Therefore, banks also love inflation, because if you for example want
to buy an apartment, which is now of course brutally expensive, because of inflation, you will remain indebted to them forever
and have to pay off huge loans your entire life.
Ok, that was now a crash course
in basics of inflation. Now enter bitcoin. Bitcoin was created as a response to
exactly this excessive monetary policy back in 2008, immediately after the financial crisis, by a person or
group of persons with the pseudonym Satoshi Nakamoto. With bitcoin, you are your own bank and don't
need to be indebted to banks any more. Because only 21 million bitcoins can ever be
created, it is an incredibly scarce asset.
Currently, there are already 18.63 million bitcoins in existence, so
88.7% of bitcoins that will ever exist, are already in circulation. Therefore, bitcoin is in stark contrast to regular fiat currencies
such as dollar or euro, a deflationary currency. It gains purchasing power instead of losing it, and the value of one bitcoin compared to euro or dollar just keeps rising and
will keep rising until at some point it will only rise with inflation. The growth curve is slowing down asymptotically in a square-root
function as seen in this logarithmic price chart. But until then, the value of one bitcoin
will easily surpass a million dollar. Bitcoins are created in a process called mining, where many computers around the world in the bitcoin network
create the coins by solving complex calculations. This process of course consumes energy. And this is now where a lot of articles are popping up
how dirty bitcoin is, how much energy it consumes, and how immoral and wrong it therefore
was of Tesla, to buy bitcoin. Ok, so far so good. And please subscribe to our channel, because as
you can see, we don't only make videos about space technology, but about all disruptive technologies,
Thank you very much in advance. So back to bitcoin. How much energy
does bitcoin now actually consume? The media always writes how insanely
bad bitcoin is for the environment. Funny though, that they leave out
how much worse gold mining is. You now, this shiny yellow
metal that everyone loves? Strange that we never hear about the
carbon emissions of gold mining. Well, turns out, gold mining consumes more
than 3x as much energy as bitcoin mining. Worldwide bitcoin mining consumes about
60TWh of energy per year worldwide. But gold mining? Almost 200 Twh/year,
more than 3x as much. Gaming consumes almost 80TWh/year. Fiat currency printing and Christmas lights
consume together about 20TWh/year. So lots of things that aren't really necessary
also consume a lot of energy. But who is the winner, who consumes
a lot more than everyone else? That's right ladies and gentlemen,
the good old BANKING SYSTEM! They consume about 650TWh/year, a bit more than
10x the energy consumption of bitcoin. Yes, the guys that devalue your money, that create
rampant inflation, so that you can buy less stuff, so that you must take loans from them and remain indebted to them forever,
yes, the same awesome guys consume 10x more energy than bitcoin.
Funny, right? Funny that you don't read lots of
news articles how bad the banking system is, and how much energy the banking
system consumes, right? And how bad the banking system
is for the environment, right? Now let's all collectively think why it could
be, that this fact is not known so much! Why could it be that the media doesn't
write so many articles about that? Could it be, because the media basically belong to a handful of rich
and wealthy individuals who have strong ties to the banking sector? Could it be that these people profit a lot from keeping
average Joe poor, by making him think bitcoin is bad, but the dollar and euro is super awesome and that you
need banks, because without banks nothing works? That the ones in power are also
the ones making the headlines?! Well surprise, they don't have
your best interests in mind.
They don't write these headlines because they care so much about
the environment, but because bitcoin would give you FREEDOM. Yes, FREEDOM, this is what bitcoin essentially is. Freedoooom! It gives you freedom from central
banks and rampant money printing. It gives you freedom to do what you want with your money, send it whenever
and wherever you want without approval or control from anyone. And that is why they don't like it and why they will
always try to paint bitcoin in a bad light. But the funny thing is, despite all their
efforts, they are still losing. People are waking up to bitcoin, more and more
people are getting onto the bandwagon. More and more people want to be free from the
shackles of the traditional banking system.
Because bitcoin cannot be controlled by anyone,
it is decentralized and worldwide. Also, please keep in mind that the whole argument that bitcoin is bad for the
environment only makes sense if the computers that consume electricity to mine bitcoin use electricity from
dirty sources such as coal. More and more miners however are switching to solar power,
simply because solar is getting so insanely cheap now.
Also, even now the waste heat from bitcoin mining is being used for
heating in colder parts of the world, or for heating up water. Eventually, bitcoin power consumption will decline
again once all the coins have been mined. So this problem will sort itself out, when 100% of electricity
for bitcoin mining will come from wind and solar. Oh, and you can be very sure that the banking sector currently also
doesn't get their electricity only from renewable sources. So, we've established that bitcoin is highly
disruptive for the banking sector. And who else is also very disruptive? Tesla of course. Tesla currently has a balance sheet
of almost 20 billion dollars. That's right, after having been profitable every quarter
in 2020 and increasing their cash balance, they raised another 5 billion in December 2020
by selling a percentage of their shares.
So now they hold 20 billion of a currency that is constantly losing value
because some funny people at central banks decide that money printing is the solution to every problem on Earth. And we know that Elon is a very smart person. So he probably was thinking: Hm….what
do we do with all that money? Of course we are building a
lot of new gigafactories. In China, that one's already finished.
In Germany. In Texas. And now
probably also in India. But that will still leave around 10 billion. Do we want to hold these 10 billion in this ugly
fiat currency which is constantly losing value? Hell no! That's probably what Elon has thought. So he decided to allocate 1.5 billion dollars into bitcoin, which
he bought in January 2020 at an average price of 30,000 dollars. So Tesla now has approximately 50,000 bitcoins. In 10 years, this stash will be probably worth much
more than the entire rest of their cash reserves. Not only will they be able to sell their shares in 2030 at we
don't know how many thousands of dollars per share, but no, they will also be able to sell one bitcoin for a million
dollars cash at some point in the next 10 years. Even now in this current bull cycle, the top
of bitcoin could reach 200,000 dollars. So the next peak or the one after that could reach
1 million dollars without any problems. And Tesla will also accept Bitcoin as a means
to purchase a Tesla cars from them.
So they will get even more bitcoins in the future. So as a longterm investment, bitcoin
makes a lot of sense for Tesla. They will have insane cash reserves to build at least 20
gigafactories all around the world in the next 10 years, thus increasing the lead which they already now have
over other energy suppliers or carmakers, even more. Tesla, now already quite invincible, will be even more invincible
in the future, and bitcoin will help to achieve that. And by the way, not only Tesla is getting into bitcoin, but all big
institutional investors also, like MicroStrategy, Grayscale, Galaxy Digital Holdings, and many more. Why? Because they are smart. That's
why they are called smart money. They know exactly that the bitcoin price will continue to rise long-term,
of course with the usual hype cycles and bear markets in between, but long-term it will rise.
And the mainstream media? Well, we guess that they will try to persuade average Joe to stay away from
bitcoin because it's so bad for the environment and so dangerous, while the people in power there
will be buying with both hands.
Classic manipulation of the masses. But Elon is of course too smart to fall for that. And a growing number of people worldwide also. And what about you? As always, we'd like to thank all the people that
help us with the channel in one or the other way. These are Szabolcs Jaray, Michael Roode, Jay Keegan, Stephan van der
Feest, AnotherSpaceNut, Framryk, Mikko, Rich L-B, Based Space Boris, mllt, Warhawk, Lucky Green and CentauriSparrow. By the way we organize everything for this
channel here on our Discord server.
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