On the outset of this text, let’s begin with the truth that Tesla’s purchase of bitcoin was in the very best curiosity of the corporate. It’s the best approach CEO Elon Musk and firm might — within the quick time period — fortify their stability sheet and place Tesla to execute its long-term imaginative and prescient.
We’re each Tesla shareholders. And considered one of us — ProgrammableTX — additionally drives a Tesla, has his home powered by Tesla photo voltaic panels and owns a Tesla Powerwall, which has gotten him by way of various blackouts. Get the drift? We’re professional Tesla. However this week has made one factor clear: Whereas Musk has not executed something unlawful or technically fraudulent by tweeting about dogecoin, it was a complete dick transfer.
There’s a saying within the comedy group: All comedians wish to be rock stars and all rock stars wish to be comedians. Within the post-Steve Jobs period, all CEOs wish to be each.
Trying 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 music, “Who Let The Canines Out” by The Baha Males, is the hallmark of a comedy naif. While 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 not buy that a lot BTC . It should be executed with excessive stealth, unfold out over hundreds of transactions, most likely by way of totally different exchanges. Right here’s a glimpse into what MicroStrategy needed to do to execute its initial $250 million foray into bitcoin, one-sixth the scale of Tesla’s buy:
For context, when Elon modified his Twitter bio to at least one phrase, “#bitcoin,” on January 29, the BTC value jumped 20 % 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… people wrote articles… about Musk’s Twitter bio.
So, it is smart strategically that he would attempt 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, shouldn’t be an issue. However the method during which this recreation was performed prompted us to reevaluate Musk, his skill 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 shouldn’t be merely a diversionary tactic. There’s something of a practice in cryptocurrency, extra frequent in bull markets than bear, during which affect peddlers use their large followings to advertise vainness initiatives or outright scams. Actually, 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 shouldn’t be fabricated from Bitcoin insiders, and we had been actually left scratching our heads as to his degree of seriousness.
You possibly can 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 dropping some huge cash.
Musk’s conduct appears a lot worse if you happen to take into account that he’s new to Bitcoin and sure making an attempt to confuse individuals, lots of whom are additionally new. He purposely fomented confusion in a market already stuffed with disinformation. Not unlawful, simply dickish.
To interrupt down the issue or DYOR, as we’re commanded to do, one truly 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 purported 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 not truly be a brand new monetary system. Not even when Musk threw the complete 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 these items 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, corresponding to 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 focus 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? Somewhat, certain. But it surely additionally implies that, for a quick interval, he was trifling with individuals who believed in him for the sake of comedy and obfuscation, whereas within the background he purchased bitcoin.
This can be a visitor put up by ProgrammableTX and Kenny Rowe. Opinions expressed are totally their very own and don’t essentially mirror these of BTC Inc or Bitcoin Journal.