On the outset of this text, let’s begin with the truth that Tesla’s buy of bitcoin was in the very best curiosity of the corporate. It’s the simplest manner CEO Elon Musk and firm may — within the brief time period — fortify their stability sheet and place Tesla to execute its long-term imaginative and prescient.
We’re each Tesla shareholders. And one in all us — ProgrammableTX — additionally drives a Tesla, has his home powered by Tesla photo voltaic panels and owns a Tesla Powerwall, which has gotten him via quite a lot of blackouts. Get the drift? We’re professional Tesla. However this week has made one factor clear: Whereas Musk has not achieved something unlawful or technically fraudulent by tweeting about dogecoin, it was a complete dick transfer.
There’s a saying within the comedy neighborhood: All comedians need to be rock stars and all rock stars need to be comedians. Within the post-Steve Jobs period, all CEOs need to be each.
Wanting again at Musk’s conduct this previous week, this above tweet is maybe essentially the most revealing. To be blunt: Maybe he thought this was intelligent, and if being intelligent was all he was making an attempt to do, he failed. Making reference to the 1998 tune, “Who Let The Canines Out” by The Baha Males, is the hallmark of a comedy naif. Once you boot up the comedy mind for the primary time, it’s the very very first thing that comes out. In case your comedy mind is a printer, then “Who Let The Canines Out” jokes are a take a look at web page.
However then, after it was revealed that Tesla had bought $1.5 billion of bitcoin, it appears he was additionally making an attempt to create a smokescreen. One can’t buy that a lot BTC suddenly. It have to be achieved with excessive stealth, unfold out over 1000’s of transactions, most likely via totally different exchanges. Right here’s a glimpse into what MicroStrategy needed to do to execute its preliminary $250 million foray into bitcoin, one-sixth the dimensions of Tesla’s buy:
For context, when Elon modified his Twitter bio to at least one phrase, “#bitcoin,” on January 29, the BTC worth jumped 20 p.c inside a couple of hours. It subsequently fell and, on February 4, Musk eliminated the phrase from his bio. We all know this as a result of… folks wrote articles… about Musk’s Twitter bio.
So, it is sensible strategically that he would try to distract us, lest he transfer the worth whereas making an attempt to purchase bitcoin. To that time, information of Tesla’s transfer despatched BTC to recent all-time highs of $46,666, as of this writing.
This sort of gamesmanship, within the summary, is just not an issue. However the method by which this recreation was performed triggered us to reevaluate Musk, his capacity to really feel empathy for his followers and the kind of misinformation he’s keen to unfold for his personal profit. We’d prefer to stress right here that it’s not the “for his personal profit” half which was dickish, however the misinformation and head video games elements.
Tweeting about dogecoin is just not merely a diversionary tactic. There’s something of a practice in cryptocurrency, extra frequent in bull markets than bear, by which affect peddlers use their huge followings to advertise self-importance initiatives or outright scams. The truth is, dogecoin was birthed particularly as a riff on this unhappy state of affairs.
Maybe within the context of all this, Musk perceived his doge marketing campaign as a meta-shill, the final word wink to insiders. However his following is just not manufactured from Bitcoin insiders, and we had been actually left scratching our heads as to his stage of seriousness.
You may see within the replies above that the primary response is real confusion, adopted by an earnest Bitcoiner leaping in to make clear.
Fueled by Musk’s tweets, the worth of dogecoin skyrocketed. This implies people all around the web aped in, taking abnormally giant dangers with a excessive likelihood of shedding some huge cash.
Musk’s conduct seems to be a lot worse in case you take into account that he’s new to Bitcoin and sure making an attempt to confuse folks, a lot of whom are additionally new. He purposely fomented confusion in a market already filled with disinformation. Not unlawful, simply dickish.
To interrupt down the issue or DYOR, as we’re commanded to do, one really has to dig into the technical variations between Dogecoin and Bitcoin, however to even try this as a rational comparability is a schizophrenic train. Doge is a joke, and to gauge it on technical deserves negates the very factor that provides doge worth within the first place, which is that it isn’t speculated to be taken critically.
Or is it?
After an exhaustive weekend of exploring doge’s viability — as each market participant should do for themselves — it’s clear that Dogecoin can’t really be a brand new monetary system. Not even when Musk threw the total weight of his status and stability sheet behind it. Not if Tesla put aside sources to construct out node and mining infrastructure. Not if its financial coverage was rationalized to advertise saving. Not if “transaction throughput” had been elevated. None of this stuff could be sufficient.
Funding in doge would nonetheless be costly and wasteful and Bitcoin would nonetheless be there, churning out blocks and executing its financial coverage. Like numerous opportunists earlier than him, reminiscent of Justin Solar, Roger Ver, Dan Larimer, Richard Coronary heart and Bitconnect, to call a couple of, Musk appears to have commanded the pockets and a spotlight of multitudes, and used this as a canopy to divert us from his true intentions.
If we’re mistaken, and this wasn’t half of a bigger play, does that make it higher? A bit of, certain. Nevertheless it additionally signifies that, for a short interval, he was trifling with individuals who believed in him for the sake of comedy and obfuscation, whereas within the background he purchased bitcoin.
It is a visitor submit by ProgrammableTX and Kenny Rowe. Opinions expressed are totally their very own and don’t essentially replicate these of BTC Inc or Bitcoin Journal.
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