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That's not really what "speculative" means in this context. Fiat currency isn't speculative because companies hold it for the purpose of using it. No matter wha
by SpicyLemonZest 6y ago
That's not really what "speculative" means in this context. Fiat currency isn't speculative because companies hold it for the purpose of using it. No matter what dollars are based on, Tesla has to hold some in order to pay the bills. "Speculative" means that Tesla has no current plans to actually use their Bitcoin holdings; the only purpose of buying them was to bet that they'll go up.
- johnyzee 6y ago> the only purpose of buying them was to bet that they'll go up. Which seems a good bet, when the government is increasing the fiat money supply by 40% per year [1]. [1] https://seekingalpha.com/article/4392716-in-october-money-supply-growth-remained-near-all-time-highs https://seekingalpha.com/article/4392716-in-october-money-su...
- robjan 6y agoYou could use that same argument for anything you can buy with dollars, including the metal used to mint them.
- johnyzee 6y agoYes? The point is that there is nothing strange about Tesla putting some of their cash reserves into assets that retain their value better ("speculating" as the GP put it).
- SpicyLemonZest 6y agoEvidence from March strongly suggests that Bitcoin isn't actually uncorrelated with other financial assets. So if Tesla's concerned about a large decrease in the value of a dollar, there's not much reason to believe bitcoin will protect them from this, at least not any more than a $1.5B pile of steel would.