BTC billionaire Tim Draper to Elon Musk: I ‘d buy the Tesla Cybertruck with Bitcoin

Tim Draper, the billionaire Bitcoin (BTC) financier who also invested early in Tesla, responded to the business’s CEO and world’s richest man, Elon Musk, including #Bitcoin to his Twitter bio to join the likes of Twitter CEO Jack Dorsey and Reddit co-founder Alexis Ohanian.Draper, who holds around 30,000 BTC according to reports, told Musk that he want to spend for the Tesla cybertruck with BTC while promoting his Bitcoin payment processor portfolio company OpenNode. He said:”Hello Elon Musk, I wish to purchase a Tesla cybertruck. Although I personally would rather keep my own #bitcoin, you can accept #bitcoin through our Draper VC company OpenNode.” Why now?On Jan. 29, Bitcoin proceeded to rally by 14 %in simply 30 minutes

quickly after Elon Musk’s Bitcoin support began flowing on social networks. Lots of hypothesized that Musk could have been the high-net-worth investor behind the huge Bitcoin build-up on Coinbase in the previous week.In the past numerous days, the premium on Coinbase skyrocketed to around$200, compared to Binance. This usually shows considerable buying activity from U.S. investors.However, Musk did not act on the bio change, and overnight, the rally reversed. Bitcoin increased from$33,000 to over$38,000, and hung back down to$33,000

. Draper most likely tweeted at Musk due the interest in Bitcoin from Musk and the favorable market belief around BTC.In a current interview with CNBC, Draper said that he is actually purchasing

more Bitcoin. Draper also said that he does not mean to offer BTC in the future, revealing his strong belief in Bitcoin as a “currency of the future. “He stated:”I’m in fact simply purchasing more [Bitcoin] … I have no interest in ever selling my #Bitcoin for dollars. Why would I take the currency of the future and offer it for the

currency of the past?”On-chain data shows that Draper isn’t the only one focused on long term gains. In fact,”HODLing “activity, which suggests the intent of Bitcoin financiers to hold BTC for a long time, is at record highs. Bitcoin 1-year HODL wave. Source: Lookintobitcoin Will Bitcoin ever be utilized as a currency?Bitcoin is increasingly becoming

considered as a store of worth and an option to gold as a safe-haven possession

. In recent months, though, the connection and

inverse correlation in between Bitcoin, gold and stocks have been decreasing.< img src=""alt title > Bitcoin correlation vs. S&P 500, VIX, DXY, Gold. Source: Digital Assets Data In addition to the

huge price gains, the worry of inflation and the large injection of liquidity by reserve banks have actually stirred enormous interest among institutional and high-net-worth investors.But while accepting BTC is ending up being increasingly common, the concern remains whether Bitcoin would ever be utilized as a currency and a medium of exchange like the dollar today.Ironically, when the cost of Bitcoin is in a clear uptrend, investors are less most likely to sell or invest their BTC. Draper himself is suggesting that he will most likely pay the $40,000 for the

Cybertruck with dollars instead of the”currency of the future.”However, if Bitcoin rate stabilizes in the future at a high enough rate level and sees lower volatility, then BTC might become more compelling for everyday payments.Meanwhile, as the network gets more users and need to scale, the Bitcoin blockchain network might eventually end up being ineffective to use for daily payments on the first layer. At that point, second-layer scaling options, like Lightning Network and sidechains

like Liquid, for example, might end up being the blockchain” apps “for processing small payments immediately. Such interoperable platforms will likely have their own tradeoffs with differing degrees of trustlessness

, privacy and decentralization. Published at Sat, 30 Jan 2021 13:00:00 +0000


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