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

[TruckElectric]

Tim Draper, the billionaire Bitcoin investor who is also an early investor in Tesla, reacted to Elon Musk's Bitcoin moment.

MARKET ANALYSIS

Tim Draper, the billionaire Bitcoin (BTC) investor who also invested early in Tesla, reacted to the company's CEO and world's richest man, Elon Musk, adding #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 would like to pay for the Tesla cybertruck with BTC while promoting his Bitcoin payment processor portfolio company OpenNode. He said:

“Hi Elon Musk, I would like to buy 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 merely 30 minutes shortly after Elon Musk's Bitcoin support began circulating on social media.

Many speculated that Musk could have been the high-net-worth investor behind the massive Bitcoin accumulation on Coinbase in the past week.

In the past several days, the premium on Coinbase skyrocketed to around $200, compared to Binance. This usually indicates significant buying activity from U.S. investors.

However, Musk did not follow up on the bio change, and overnight, the rally reversed. Bitcoin rose from $33,000 to over $38,000, and dropped back down to $33,000.

Draper likely tweeted at Musk due the interest in Bitcoin from Musk and the positive market sentiment around BTC.

In a recent interview with CNBC, Draper said that he is actually buying more Bitcoin. Draper also said that he does not intend to sell BTC in the future, expressing his strong belief in Bitcoin as a “currency of the future.” He said:

"I'm actually just buying more [Bitcoin]... I have no interest in ever selling my #Bitcoin for dollars. Why would I take the currency of the future and sell 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 indicates the intent of Bitcoin investors to hold BTC for a long time, is at record highs.

Bitcoin 1-year HODL wave. Source: Lookintobitcoin

Will Bitcoin ever be used as a currency?
Bitcoin is increasingly becoming considered as a store of value and an alternative to gold as a safe-haven asset. In recent months, though, the correlation and inverse correlation between Bitcoin, gold and stocks have been decreasing.

Bitcoin correlation vs. S&P500,VIX, DXY, Gold. Source: Digital Assets Data

In addition to the massive price gains, the fear of inflation and the large injection of liquidity by central banks have stirred massive interest among institutional and high-net-worth investors.

But while accepting BTC is becoming increasingly common, the question remains whether Bitcoin would ever be used as a currency and a medium of exchange like the dollar today.

Ironically, when the price of Bitcoin is in a clear uptrend, investors are less likely to sell or spend their BTC. Draper himself is suggesting that he will probably pay the $40,000 for the Cybertruck with dollars rather than the "currency of the future."

However, if Bitcoin price stabilizes in the future at a high enough price level and sees lower volatility, then BTC could become more compelling for everyday payments.

Meanwhile, as the network gains more users and must scale, the Bitcoin blockchain network may ultimately become inefficient to use for everyday payments on the first layer.

At that point, second-layer scaling solutions, like Lightning Network and sidechains like Liquid, for example, may become the blockchain "apps" for processing small payments instantly. Such interoperable platforms will likely have their own tradeoffs with varying degrees of trustlessness, privacy and decentralization.


SOURCE: COINTELEGRAPH

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[Jhodgesatmb]

I don't care who buys a CT or what they pay for it with as long as they pay the same amount as everyone else and they stand in the same line as everyone else. I am not big on billionaires getting to cut in line or get some deal. If anything, put them at the back of the line since they have way too much privilege as it is...but that is a personal prejudice against holding too much wealth; I am satisfied if they are in the same line as the rest of us.

 

[Crissa]

Billionaires can always pay someone else to stand in line.

-Crissa

 

[RonM]

Billionaires can always pay someone else to stand in line.

-Crissa

DAMN....I've been made!!!

 

[Cyber_Dav]

Not surprisingly, the headline is exactly opposite of what the quoted person actually said.

He said:
“Hi Elon Musk, I would like to buy a Tesla cybertruck. Although I personally would rather keep my own #bitcoin, you can accept #bitcoin through our Draper VC company OpenNode.”

He doesn't want to buy the CT with Bitcoin, he wants Elon to let others do so (tthrough his company).

 

[Jhodgesatmb]

Not surprisingly, the headline is exactly opposite of what the quoted person actually said.


He doesn't want to buy the CT with Bitcoin, he wants Elon to let others do so (tthrough his company).

Not impressed with Bitcoin either.

 

[Crissa]

Yeah, Bitcoin, like everything else, only has value if others think it has value.

It is too unwieldy to trade, so eventually it will collapse. Just... This is the modern era gold bugs.

If we really did have an economic collapse and those guys needed their money back to spend, well, bitcoin's value would drop so super-quick as to be useless. But as long as there's a surplus of investment cash trying to find a place to hide, it'll keep going up.

-Crissa

 

[TruckElectric]

It is too unwieldy to trade

LOL Oh really. You couldn't be more wrong if you wanted to.

It's not anymore "unwieldy" than say platinum or gold futures. I know because I trade both and watch BRR(CME Bitcoin symbol). CME and Cboe will offer ETHER soon. CME will list ETH on Feb. 8

so eventually it will collapse

Ok, when?

If we really did have an economic collapse and those guys needed their money back to spend, well, bitcoin's value would drop so super-quick as to be useless.

I doubt that, seriously.

But as long as there's a surplus of investment cash trying to find a place to hide, it'll keep going up.

A "surplus of investment cash" is not what makes Bitcoin go up.



I'm not an advocate of Bitcoin or fiat currency for that matter, but I realize it's here to stay.

 

[Jhodgesatmb]

LOL Oh really. You couldn't be more wrong if you wanted to.

It's not anymore "unwieldy" than say platinum or gold futures. I know because I trade both and watch BRR(CME Bitcoin symbol). CME and Cboe will offer ETHER soon. CME will list ETH on Feb. 8



Ok, when?




I doubt that, seriously.




A "surplus of investment cash" is not what makes Bitcoin go up.



I'm not an advocate of Bitcoin or fiat currency for that matter, but I realize it's here to stay.

I have very little experience with Bitcoin; a couple lectures from technical experts. But from the media I know that it is possible to hide the provenance of Bitcoin trading and purchasing and this, I believe, poses a problem, because we live in a world where one part wants more transparency and provenance, and another part wants the opposite. The challenge I see for Bitcoin is how to satisfy these opposing requirements. It might survive forever in the underworld but may never achieve mass adoption as a result. Ok, expert, knowing that I am an ignoramous on this subject, and hopefully providing more evidence than “when”, or “really”, or “seriously”, which provide no objective value, can you explain my misunderstanding of Bitcoin?

 

[TruckElectric]

I have very little experience with Bitcoin; a couple lectures from technical experts. But from the media I know that it is possible to hide the provenance of Bitcoin trading and purchasing and this, I believe, poses a problem, because we live in a world where one part wants more transparency and provenance, and another part wants the opposite. The challenge I see for Bitcoin is how to satisfy these opposing requirements. It might survive forever in the underworld but may never achieve mass adoption as a result. Ok, expert, knowing that I am an ignoramous on this subject, and hopefully providing more evidence than “when”, or “really”, or “seriously”, which provide no objective value, can you explain my misunderstanding of Bitcoin?

https://www.barnesandnoble.com/w/bitcoin-for-dummies-prypto/1122324268?ean=9781119076131

 

[Crissa]

LOL Oh really. You couldn't be more wrong if you wanted to.

It's not anymore "unwieldy" than say ...

Yes. None of those work as currency because they're unwieldy to trade and change value frequently and wildly.

The methods to hide bitcoin trades are the same as hiding any securities trading. And hence, illegal.

-Crissa

 

[TruckElectric]

Yes. None of those work as currency because they're unwieldy to trade and change value frequently and wildly.

The methods to hide bitcoin trades are the same as hiding any securities trading. And hence, illegal.

-Crissa

I should have been more clear about which trading I was referring to. CME futures Bitcoin(BTC).

CME CF Cryptocurrency Reference Rates are calculated based on the Relevant Transactions of all Constituent Exchanges. Calculation steps on any given Calculation Day are as follows: CME CF Benchmark CME CF CRYPTOCURRENCY REFERENCE RATES Methodology Guide

1. All Relevant Transactions are added to a joint list, recording the trade price and size for each transaction.
2. The list is partitioned into a number of equally-sized time intervals, as specified in Section 6.
3. For each partition separately, the volume-weighted median trade price is calculated from the trade prices and sizes of all Relevant Transactions, i.e. across all Constituent Exchanges. A volume-weighted median differs from a standard median in that a weighting factor, in this case trade size, is factored into the calculation.
4. The CME CF Cryptocurrency Reference Rate is then given by the equally-weighted average of the volume-weighted medians of all partitions.

3. What is CME CF Bitcoin Reference Rate (BRR)?
The BRR aggregates the trade flow of major bitcoin spot exchanges during a specific calculation window into a once-a-day reference rate of the U.S. dollar price of bitcoin. Calculation rules are geared toward maximum transparency and real-time replicability in underlying spot markets.
4. When is the CME CF Bitcoin Reference Rate (BRR) published?
The BRR will be published between 4PM and 4:30PM London time every day including weekends and holidays.
5. What is the CME CF Bitcoin Real Time Index (BRTI)?
The BRTI aggregates global demand to buy and sell bitcoin into a consolidated order book that reflects the fair, instantaneous U.S. dollar price of bitcoin. It is geared toward low latency and timeliness and is based on forward looking input data.
6. How often us the CME CF Bitcoin Real Time Index (BRTI) published?
The BRTI will be published approximately every second of every day including weekends and holidays.
7. What kind of oversight is there over the BRR and BRTI?
An Oversight Committee, consisting of CME Group, Crypto Facilities and leading industry experts will regularly review the methodology and practice standards followed in the reference rate and index determination process to protect the integrity of the rates and ensure all CME CF Cryptocurrency Indices continue to be representative of the underlying markets.
8. Where can I find additional information about CME Group’s Bitcoin data products?
A full description of the offering and other information can be found at: http://www.cmegroup.com/bitcoin

 

[Crissa]

None of that is relevant to my blanket statement, as none of it addresses the basic difficulties and non-advantages that bitcoin has.

Yes, it's a commodity (or in this case, future.) It takes the same effort to trade as other commodities. Is has no advantages over others. Except, well, there is no innate sink or demand for it.

Which is why it will collapse. Just like I can say that 2x4 bridge will collapse, but I can't say exactly when, either.

-Crissa

 

[TruckElectric]

None of that is relevant to my blanket statement

Blanket statement is correct and wrong at the same time.

Except, well, there is no innate sink or demand for it.

That statement tells me you do not understand how futures work.

Which is why it will collapse.

Your basis reference for the collapse of Bitcoin is nonsensical and without merit.

 

[Crissa]

That statement tells me you do not understand how futures work.

And now I know that you do not.

-Crissa