All these crypto news sites are expecting a massive pump from Tesla and the ability to buy cars with the currency, but I actually think that this is going to cause a drain on the price of Bitcoin.
Tesla's are highly desirable cars and this is going to give people a more reliable way to gain liquidity by selling their cars. So I'm speculating that we could see a dip in price as we start seeing a lot of coins being moved from HODL to buy Tesla's and sell them used.
Then Tesla will in turn move those coins to institutional investors in large blocks who will sell them on the open market. We could see a massive expansion of the actively trades (available) float of BTC over the next few years.
While this sucks for people who have invested for the purposes of gaining value, I think that this is a good thing overall as BTC because of a healthier eco system.
Also now that Tesla has this foothold in cryptocurrency, does he use this position to start PayPal 2.0 for cryptocurrency transactions for businesses that can not accept cryptocurrency due to trustworthy liquidity problems?
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