Obviously, bitcoin super fans tend to be Tesla super fans, and there’s actually a lot of symbiosis between these two groups, so it won’t surprise anyone at all. So, I don’t know, it’s a bit difficult to know how many people are going to take Tesla’s offer to spend bitcoin on cars, but that sounds like pretty good marketing to me actually in terms of talking to that audience about bitcoins and sort of formalize all those associations we might have in mind between EV enthusiasts and bitcoin fans.
MC: How would that work exactly? Do I just have to go to the website and choose the car I want, then give them my Bitcoin information, then order the car?
LG: Well, Mike, you’d have to have bitcoin first to do that, just an FYI. And as you stated at the top of the series, you’re not a crypto guy, therefore.
MC: I’m talking hypothetically!
LG: [Laughing] Oh, OK, OK.
MC: … for the benefit of our listeners, Lauren.
GB: And that’s true, actually. In fact, Mike, you should have had a bitcoin by the time they made this announcement because that was, the value of a bitcoin was basically equal to base model three. So, I just need it. But yes, so this is something that still needs to be resolved. Tesla basically said he plans to take Bitcoin at some point in the future. They haven’t said anything about the details, about how they’re going to handle payment processing. Many companies will actually say they are taking your bitcoin, but they will convert it to something else first. This is generally how Bitcoin transactions work. For something like a car, it may actually be easier to take bitcoin directly, as the type of transaction cost is less significant in terms of the total cost of a car. It can be expensive to use Bitcoin simply because of the energy and costs involved in trading Bitcoin. But that’s a long way to put it, we don’t quite know how the logistics will work out yet.
LG: Greg, you just reminded me at the start of the show that I wanted to research the value of a single bitcoin and then monitor it so that we could assess the price at the end of the show. OK, at the moment a single bitcoin is worth $ 47,892.92. So yeah, let’s see if we upgrade our Tesla cars at the end of the show, based on its fluctuations.
GB: It depends on how much Musk tweets through our podcast.
LG: Yeah. So Mike, you had a good question as to whether or not we know Elon is really serious about this, right?
MC: Yeah, like Greg just mentioned, Elon is tweeting about Bitcoin. When he tweets about bitcoin, it actually makes a significant shift in the price of bitcoin. I think you mentioned in your story, Greg, that at one point Elon put a bitcoin hashtag in his Twitter bio and the price went up 20%. So, we know he enjoys using social media to get the money markets moving. As you mentioned, other companies are interested in bitcoin and are investing in bitcoin. Some financial institutions are investing in bitcoin and collectively the price is going up. But are we sure this isn’t one of Elon’s little ploys?
GB: That’s a very good question, Mike. I think what I have to say first is that $ 1.5 billion is a lot of money, even for Tesla. I think they had about $ 19 billion in cash as of the date of this announcement. So, I mean 1.5 billion out of 19 is a huge investment going on.