Michael Saylor and Max Keiser believe Elon Musk should cash in some of his Tesla stock and buy bitcoin instead.
Elon Musk has asked his millions of Twitter followers whether to sell 10% of his Tesla stock. The question is what to do with the proceeds, and bitcoin proponents, such as Michael Saylor and Max Keiser, have explained the benefits if he decided to buy BTC with the money.
Musk to Sell 10% of His Tesla Stock?
The CEO of the world’s largest EV maker took a rather unorthodox approach in regards to his financial future. He asked his multi-million fan base on Twitter whether he should sell 10% of his personal Tesla shares.
While many in the comments have speculated on what could be the real reason behind his contemplation, Musk argued that it’s because of the recent discussion about tax avoidance and unrealized gains.
With just a few hours left until the poll’s deadline (as of writing these lines), the majority of answers are in favor of Musk indeed selling 10% of his Tesla stock, which is estimated to be worth around $25 billion
Moreover, Musk later added that he will “abide by the results of this poll, whichever way it goes.”
Saylor and Keiser: Buy Bitcoin
Regardless of personal opinions on Musk, he’s a polarizing figure that attracts attention whatever he does. And, such a post that can decide the faith of $25 billion definitely garnered people’s attention.
The propositions below the poll on what he should do with the funds if sold ranged wildly. One of the most liked ones, though, came from MicroStrategy’s CEO – Michael Saylor.
The prominent BTC bull, staying true to his nature, advised Musk to consider purchasing $25 billion in bitcoin and also convert Tesla’s entire balance sheet to the cryptocurrency. Saylor, whose company already owns more than $7 billion in BTC, believes this move would “deliver diversification, inflation protection, and more upside for all investors in a tax-efficient manner.”
If the goal is diversification, an alternate strategy to consider is converting the $TSLA balance sheet to a #Bitcoin Standard and purchasing $25 billion in $BTC. That would deliver diversification, inflation protection, & more upside for all investors in a tax efficient manner.— Michael Saylor⚡️ (@saylor) November 6, 2021
CryptoPotato also reached out to Max Keiser, the host of Keiser TV and long-term bitcoin proponent, who has spoken against some of Musk’s decisions in regards to bitcoin in the past.
Keiser reiterated his belief that “you don’t change bitcoin, bitcoin changes you” and added that Musk has learned from his previous mistakes and “given up his dalliance with shitcoins” – referring to Musk’s love affair with Dogecoin.
Furthermore, Keiser added that Tesla’s CEO seems “ready to let Satoshi do to this decrepit, decayed, corrupt financial and political system what we have been unable to do ourselves: Pull the plug.”
Although the chances of Musk indeed buying BTC with all of his proceeds seem rather slim, to say the least, Keiser asserted that the billionaire could become the “new Dr. Kevorkian of finance” if he indeed does this.
“Let’s pray Elon follows up, sells his TSLA stock, moves the proceeds into bitcoin, and kicks off a global rout in these Potemkin stock and bond markets that are killing us with malfeasance, kleptocracy, and hyperinflation.” – Keiser noted.
Bitcoin Senator Rallies For Support Against Powell’s Renomination As Federal Reserve Chair, Here’s Why
Popular Bitcoin Senator, Senator Cynthia Lummis is reportedly soliciting for the support of her fellow Republicans in her stance against Jay Powell after the latter got renominated to chair the Federal Reserve.
Bitcoin Senator Wary of Crypto-unfriendly Nominees
As reported by Decrypt who first broke the news, a source in Lummis’ office says her reasons border on her belief that there is an unlawful treatment of crypto-based institutions in her home state, Wyoming.
Meanwhile, the Bitcoin senator is not only against the nomination of Powell. The source still claims that Senator Lummis is also asking her Republican colleagues to help block Leal Brainard’s nomination as well. Brainard is another nominee of President Biden’s for the Fed positions.
Lummis’ skepticism might be as a result of the Special Purpose Depository Institutions or SPDIs as they are otherwise called. They are a new type of crypto-based bank that Wyoming lawmakers granted a special operational license to, just last year.
Two crypto-based companies that received the license in 2020 include Kraken exchange and Avanti — the stablecoin issuer. However, the Federal Reserve’s decision to not approve their applications for central bank-issued accounts has placed a hold on their banking ambitions.
Speaking about the Federal Reserve’s delay in a Wall Street Journal feature article by Lummis on Wednesday, she says it is an intentional and unlawful obstruction. She added that the Fed’s reasons are ambiguous at best. According to the Bitcoin Senator, Lummis claimed that the Wyoming entities have met all requirements for being a bank under the Federal Reserve Act.
Lummis insists that Powell and Brainard are only avoiding their legal obligations in their continued treatment of SPDIs and like many other U.S lawmakers, she wants to know why.
Could Lummis’ Pressure Affect Powell’s Confirmation?
As Lummis continues to apply even more pressure on her colleagues, the possible extent to which this pressure can truly go in affecting the confirmation process of both Powell and Brainard, remains to be seen.
But with the chair of the Senate Banking Committee, Sherrod Brown, reportedly holding a vote on the pair sometime this month, both of them could be confirmed.
Also, there’s a possibility of a potential tight vote now that some progressive Democrats — most notably Elizabeth Warren — are saying they will not be voting for Powell.
PlanB’s Floor Model First Miss: Bitcoin Price Closed Way Below $98K In November
PlanB’s floor model was wrong about BTC’s November closing price. The stock-to-flow model, though, is still on track.
Bitcoin’s closing price for November below $60,000 meant that PlanB’s floor model, which was particularly accurate until now, was finally broken.
At the same time, though, the analyst confirmed that the more popular stock-to-flow model was still valid as BTC is on track towards $100,000.
PlanB’s Floor Model Fails
PlanB is among the most popular analysts in the cryptocurrency space, predominantly known for the Bitcoin stock-to-flow model, which he published in early 2019. However, he also posted another model, which he referred to as the “worst-case scenario,” in July this year.
Also known as the floor model, it’s based on technical aspects, such as the 200-day moving average, and saw BTC closing August at $47,000, September at $43,000, and October at $63,000.
The first two months were spot on. BTC closed in October at $61,000, which was still very near to the model’s predicted price, and PlanB said it was “good enough” for him.
However, November’s closing actual closing price of way below $60,000 was quite different from what the model envisioned – $98,000. As such, the analyst admitted that this was the model’s first miss after nailing the previous few months.
Floor model first miss (after nailing Aug,Sep,Oct). No model is perfect, but this is a big miss and the first in 10y! Outlier/black swan? I will give Floor model 1 more month.
S2F model unaffected and on track to $100K.
Watch out for trolls confusing Floor and S2F model! https://t.co/tj6SSwSzKR— PlanB (@100trillionUSD) December 1, 2021
S2F on Track
As mentioned above, the floor model works separately from the stock-to-flow model, which sees the stock as the size of existing reserves (or stockpiles) and the flow as the annual supply of new bitcoins to the market.
It’s actually even more bullish as the original version sees bitcoin tapping $100,000 by the end of the year. The upgraded stock-to-flow cross-asset model, which introduced different phases of bitcoin’s development, predicted a price tag of $288,000 until 2024.
Although bitcoin still struggles below $60,000 at the time of this writing, PlanB believes that the original S2F hasn’t been broken as the asset is on its way towards $100,000. If BTC is indeed to go into a six-digit price territory, it would have to increase its USD value by more than 66% in the next 30 days.
CashApp Added Bitcoin Taproot Support, Here’s Why It Is Important
CashApp now supports the updated version of Bitcoin
The widely known Cash App mobile payment service developed by Square, which is being used to transfer money with the usage of a mobile app, now fully supports the Bitcoin taproot update.
The mobile payments service is currently available in the U.S. and the U.K. but is still reporting 70 million annual transactions between users and generating $1.8 billion in gross profit.
The taproot upgrade was highly anticipated by the Bitcoin network and the cryptocurrency community in general. Previously, the update went into effect on Nov. 14, 2021, at block 709,632.
Previously, the announcement appeared on the app’s website that has described numerous benefits that users will experience after the implementation of the update. One of the main advantages is increased privacy and reduced transaction fees.
The two-week period has been chosen to confirm the functionality of the updated version of the currency. As for now, the update has been activated for all customers. Taproot-enabled wallets are now available for both receiving and sending.