The White House has endorsed an amendment to the $1 trillion Infrastructure bill that supports proof-of-work over all other consensus mechanisms. However, the crypto community is supporting a different amendment.
White House Takes Stance on Infrastructure Bill’s Crypto Tax Amendment
The White House has endorsed an amendment to the Infrastructure bill sponsored by Senators Mark Warner, Rob Portman, and Kyrsten Sinema who drafted the original tax provision. This amendment competes with another introduced a day prior that has gained much support from the crypto community. It was sponsored by Senators Ron Wyden, Cynthia Lummis, and Pat Toomey.
White House economics reporter for The Washington Post Jeff Stein tweeted late Thursday night:
White House is coming out formally in support of Warner-Portman-Sinema crypto amendment, implicitly against the Toomey-Wyden-Lummis plan.
Andrew Bates, the White House’s deputy press secretary, also issued a statement Thursday night: “The Administration is pleased with the progress that has yielded a compromise sponsored by Senators Warner, Portman, and Sinema to advance the bipartisan infrastructure package and clarify the measure to reduce tax evasion in the cryptocurrency market.”
The statement continues: “The Administration believes this provision will strengthen tax compliance in this emerging area of finance and ensure that high income taxpayers are contributing what they owe under the law … we believe that the alternative amendment put forward by Senators Warner, Portman, and Sinema strikes the right balance and makes an important step forward in promoting tax compliance.”
Many people in the crypto community immediately voiced concerns about the amendment endorsed by the White House.
Jerry Brito, CEO of Coin Center, called the amendment backed by the White House “ridiculous.” Noting that “Sen. Warner and Portman are proposing a last-minute amendment competing with the Wyden-Lummis-Toomey amendment,” he opined:
The White House is endorsing proof-of-work over all other consensus mechanisms to be enshrined in law … It is disastrous. It only excludes proof-of-work mining. And it does nothing for software devs.
Senator Toomey agreed with Brito, tweeting, “He’s right.”
Coin Center’s director of communications, Neeraj K. Agrawal, concurred, tweeting: “The White House is choosing to support proof-of-work over proof-of-stake, in law, in an unrelated infrastructure bill. This is will have huge consequences for how cryptocurrency develops in America.”
Several lawmakers have announced their support for the bipartisan Wyden-Lummis-Toomey amendment, including Rep. Ted Budd, Rep. Tom Emmer, and Rep. Darren Soto.
Senator Wyden tweeted in response to the endorsement by the White House: “The Warner-Portman-Sinema amendment provides a government-sanctioned safe harbor for the most climate-damaging form of crypto tech, called proof-of-work. It would be a mistake for the climate and for innovation to advance this amendment.”
He added: “My bipartisan amendment with Sen. Lummis and Sen. Toomey will ensure Americans pay the taxes they owe on cryptocurrency while also fostering innovation here at home. Our amendment offers a real, commonsense solution to this very real problem.”
MSNBC’s Kyle Griffin reported that Senate Majority Leader Chuck Schumer “has filed a motion tonight to end debate and move toward a final vote on the bipartisan bill. The final vote is likely on Saturday.”
Ripple has launched its first On-Demand Liquidity (ODL) service implementation in Japan in partnership with SBI Remit, a large Japanese money transfer provider, and Philippine crypto exchange Coins.ph.
Ripple, SBI, Coins.ph Collaborate to Launch Ripplenet’s On-Demand Liquidity
Ripple Labs announced Wednesday “the launch of Ripplenet’s first live On-Demand Liquidity (ODL) service implementation in Japan” in collaboration with SBI Remit Co. Ltd. and Coins.ph.
SBI Holdings, an investor and shareholder of Ripple, independently announced Wednesday that SBI Remit and crypto exchange SBI VC Trade have launched “Japan’s first international remittance service using crypto assets” in partnership with Ripple Labs. SBI Remit, a subsidiary of SBI Fintech Solutions, is one of the largest money transfer companies in Japan. It has been using Ripplenet since 2017.
Coins.ph, a product of Betur Inc., is a crypto exchange and a leading mobile wallet service in the Philippines that is regulated by the central bank, Bangko Sentral ng Pilipinas (BSP).
The announcement details:
This expanded partnership will see SBI Remit connect with Coins.ph and digital asset exchange platform SBI VC Trade on Ripplenet for faster and more affordable cross-border payments from Japan to the Philippines.
SBI explained that after a remittance request is initiated with SBI Remit, SBI VC Trade sends XRP in real time to Coins.ph, which converts the cryptocurrency to the Philippine peso to pay the remittance recipient.
The price of XRP jumped more than 16% Wednesday following the news. At the time of writing, XRP is trading at $0.7148 based on data from Bitcoin.com Markets.
Ripple explained that “The Filipino diaspora is currently the third largest in Japan,” noting that remittance flows from Japan to the Philippines sent by overseas Filipino workers in 2020 totaled approximately $1.8 billion. In addition, Japan has one of the highest cross-border payment fees in the world. The company detailed:
This is Ripple’s first On-Demand Liquidity (ODL) service implementation in Japan, setting the stage to drive more adoption of crypto-enabled services in the region. By leveraging the digital asset XRP to eliminate pre-funding, the two companies can also free up capital and accelerate the expansion of their own payments businesses.
Nobuo Ando, Representative Director of SBI Remit, commented: “The launch of ODL in Japan is just the start, and we look forward to continuing to push into the next frontier of financial innovation, beyond real-time payments in just the Philippines, but to other parts of the region as well.”
Meanwhile, the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against Ripple Labs and its executives is still ongoing. Ripple CEO Brad Garlinghouse has revealed, however, that the company could go public after the SEC lawsuit is resolved.
A promoter of the cryptocurrency scheme previously touted by famous martial artist and actor Steven Seagal has pleaded guilty for his participation. The scheme falsely claimed that it “could generate an 8,000% return for investors within one year.”
Crypto Scheme Promoter Pleads Guilty
The U.S. Department of Justice (DOJ) announced Friday that John DeMarr, 55, has pleaded guilty “for his participation in a coordinated cryptocurrency and securities fraud scheme through purported digital currency platforms and foreign-based financial accounts.”
DeMarr admitted to conspiring with others “to defraud investor victims by inducing them to invest in their companies, ‘Start Options’ and ‘B2G,’ based on materially false and misleading representations.” He was charged in February. The DOJ stated that both schemes were fraudulent.
Start Options purported to be a cryptocurrency mining and trading platform while B2G, also known as Bitcoiin2gen, was purportedly an “ecosystem” for its native B2G token where users could trade digital and fiat currencies.
DeMarr and others began offering securities through the Start Options website in approximately December 2017. Investors had to deposit their funds in bitcoin, U.S. dollars, or euros. The funds were locked in for a specified period of time and investors were promised they would earn “massive profit.”
However, instead of using the money to invest in cryptocurrency as advertised, DeMarr and others diverted the funds to accounts controlled by them “and used for various personal expenditures, including the purchase of a Porsche, jewelry, and to remodel DeMarr’s home in California.”
Start Options also falsely claimed to feature celebrity endorsements to promote its securities offerings. The DOJ noted:
Based on this and other fraudulent promotional materials, investors sent millions of dollars’ worth of bitcoin, ethereum, and fiat currency to financial accounts, including cryptowallets, controlled by DeMarr and others in the U.S. and abroad.
In late January 2018, instead of letting investors withdraw their funds after the locked-in period ended, DeMarr and others required them to roll over their accounts into an unregistered initial coin offering (ICO) of B2G, the token which they falsely promoted. “In truth, investors never actually received any digital tokens, and funds from the offering were not used to develop the B2G platform,” the Department of Justice described, adding:
As part of the conspiracy, DeMarr and others also paid various promoters, including an actor famous for martial arts films made in the 1980s and 1990s, to serve as a promoter and celebrity spokesperson, falsely claiming that B2G could generate an ‘8000%’ return for investors within one year, and that he was a participant in the ICO.
The celebrity the DOJ referred to was Steven Seagal who was charged by the U.S. Securities and Exchange Commission (SEC) in February last year for unlawfully promoting the cryptocurrency investment scheme that claimed to be “the next generation of bitcoin.” Seagal failed to disclose that he was being compensated in cash and cryptocurrencies by B2G for marketing its token offering, such as on Twitter and Facebook.
DeMarr and others also created false press releases and whitepapers about B2G, fabricated its account statements, and refused to let investors to withdraw their money. He “pleaded guilty to one count of conspiracy to commit securities fraud,” the DOJ said, noting that “DeMarr faces a maximum sentence of five years in prison.”
Born four years ago as a result of the disagreement between two groups over scaling issues, Bitcoin Cash has grown to be so much more. Offering a full suite of solutions for cryptocurrency users, having support from thousands of merchants at a worldwide level, and recently introducing Smartbch, a project that aims to tether smart contracts functions to the protocol, Bitcoin Cash is now more mature than ever. However, mishaps have also happened along the way.
Welcome to the World, Shuya Yang!
On August 1, 2017, in the midst of a big scaling debate that shook the cryptocurrency world to its core, Bitcoin Cash (BCH) was the result of a series of disagreements among developers and Bitcoin influencers about how to achieve blockchain scaling in the best way possible. Some supporters opted to scale onchain by increasing the block size, and that idea transformed into what Bitcoin Cash is today.
However, since that time, and thanks to the contributions of several people and organizations, but not without difficulties and forks along the way, Bitcoin Cash has become now a robust blockchain with an established upgrade path that seeks to minimize the drama that’s associated with upgrades and forks in the past. This has been especially important because most of the upgrades that have affected the chain have derived from the planning, standards, and the inclusion of improvements into the protocol every six months.
Even with a few bumps along the way, and being a minority chain, Bitcoin Cash has managed to move forward with its principal goal, which is providing more economic freedom to those who need it in the world. From technical achievements like Schnorr Signatures, the implementation of a token standard called SLP, and a new difficulty algorithm, to focus on the social part of the cryptocurrency spectrum by supporting communities in countries like Venezuela, South Sudan, and Argentina, Bitcoin Cash covers the whole spectrum of action of what a cryptocurrency represents.
Bitcoin Cash is considered the most successful Bitcoin fork in the whole cryptocurrency market: it is present in most of the leading exchanges at a worldwide level, Including, Binance, Huobi, Upbit, Coinbase, Okex, and even Paypal. And is accepted by millions of cryptocurrency users at a worldwide level.
Bitcoin Cash Year Four: Highlights
This has been another interesting year for the Bitcoin Cash community, which sadly, experienced yet another blockchain split last November 15 that gave birth to another chain, denominated Bitcoin Cash ABC. The event had its origin in the discussion around the infrastructure development fund that Bitcoin ABC, the leading node implementation at the time, wanted to adopt, and a new DAA (Difficulty Adjustment Algorithm).
However, most of the community rejected the plan that proposed miners concede a part of their block rewards to a central authority of developers to help subsidize development expenses and chose to stay with the original chain’s ruleset. This split resulted in the separation of Bitcoin ABC, led by Amaury Sechet, who was one of the original collaborators of the currency, from the Bitcoin Cash project.
The debate over funding projects also gave birth to one of the fundamental projects for Bitcoin Cash this year: Flipstarter. Flipstarter, which is a noncustodial crowdfunding tool that uses BCH, showed that the BCH community could thrive using its own means to fund valuable projects for the environment. More than 12 projects have collected over $1 million for last August, and that amount has only grown exponentially since that time.
On the institutional side of things, BCH also had some interesting victories. Grayscale was greenlighted to offer shares of its Bitcoin Cash Trust to institutions last August, meaning that now institutional investors could get exposure to the asset without having to worry about custody, a big concern for many investors interested. Privacy also experienced a big jump, with Cashfusion, a fungibility protocol directed at obscuring cryptocurrency transactions in the Bitcoin Cash chain, reaching a milestone of $3.2 billion anonymized.
Bitcoin Cash is also making a big leap to decentralized finance. Last year, General Protocols, a company dedicated to building decentralized finance (defi) protocols on top of BCH, raised $3 million from strategic investors after launching Anyhedge and Detoken, the first two defi instances of tools designed to operate on top of the BCH protocol. And just recently, a new sidechain called Smartbch that uses Bitcoin Cash as its main token was launched, with the ability to run EVM compatible content. This would give Bitcoin Cash, in theory, an equivalent functionality to Ethereum and compatibility.
As all of this happened, the development of the currency didn’t stop. A number of node implementations joined a new node called Bitcoin Cash Node and the devs collectively took over the development tasks of the protocol. On May 15, 2021, a new update was applied to the BCH chain with success. This update brought a number of important improvements, including the inclusion of an unlimited number of unconfirmed chained transactions. Also, new measures to add transparency and standards to control what gets upgraded and when, like CHIPs (Cash Improvement Proposals), are designed to avoid new confrontations like the ones that happened in the past.
Adoption, Adoption, Adoption
Bitcoin Cash has one of the few chains that has presented adoption as one of its first priorities since its beginning. The whole objective of scaling was to allow more people to transact using Bitcoin Cash with low fees. And this last trait has made it especially interesting for third-world countries where users can’t pay high fees to use crypto as currency.
Many people are asking me why I’m supporting Bitcoin Cash and why I think it has the biggest upside potential. Good question.
Throughout this last year, there have been important efforts to bring bitcoin cash to the hands of the underserved. Bitcoin Cash Argentina, a new Bitcoin Cash nonprofit, has onboarded more than 100 merchants in the area and has hosted meetups to promote the knowledge and use of cryptocurrencies in the region. The organization operated with its own funds until last May when it successfully crowdfunded a Flipstarter campaign that allowed it to expand its objectives.
Other groups are also doing the same in Venezuela and Colombia: Led by George Donnelly, former Dash supporter, Bitcoin Cash Latam has been onboarding merchants and users, showing the benefits of using cryptocurrencies in inflationary and devaluation-based economies. The organization has been targeting the Venezuelan capital heavily, and now hundreds of merchants already know how to use cryptocurrency for their benefit.
Satoshi’s Angels is another group that has been consistently running merchant adoption campaigns since December 2020, arming a strong ambassador team that has successfully onboarded 300+ merchants so far. According to one of its founders, Akane Yokoo, the team has been organizing three monthly virtual meetups for two regions in English and one in Spanish, which are both open for everyone to join globally.
The Community Celebrates
While this year’s celebration will be affected by the Covid-19 related measures that are still affecting mobility and operations in some countries, Satoshi’s Angels will host a live stream to commemorate this milestone. Users could get free BCH airdrop every day before the event if they follow the hosts and retweet the airdrop posts with CCTip. There will also be an airdrop during the event for the present users in the chat. There will be also other regional live streams and discussions throughout the day.
While dogecoin and the ERC20 token shiba inu have surprised the masses with phenomenal gains this year, another dog token has entered the fray. A coin project called “Baby Doge” has risen 228.3% during the last 24 hours and even more so after Tesla’s CEO Elon Musk tweeted about the crypto asset.
Another Canine Crypto Coin Sees Its Value Surge
Just when you thought there were plenty of dog meme tokens flooding the market, another canine coin has broken free from the kennel. A new token called baby doge (BABYDOGE) has been the talk of the crypto community the last few days, and Elon Musk decided to tweet about the token on Thursday. Musk’s tweet wasn’t very coherent and he simply said:
Of course, Musk’s tweet sent the baby doge token skyrocketing as the digital currency has risen 228.3% over the last 24 hours. Seven-day stats against the U.S. dollar show baby doge is up 53% this week, and across the last two weeks the coin has jumped 716.9%.
Information about baby doge can be found on the Binance Smart Chain (BSC) token tracker bscscan.com and the crypto asset has a website called babydogecoin.com.
“Baby Doge Coin has learned a few tricks and lessons from his meme father, Doge,” the web portal says. “A new crypto birthed by fans [and] members of the Dogecoin online community. Baby Doge seeks to impress his father by showing his new improved transaction speeds [and] adorableness,” the website adds. Furthermore, the website notes:
[Baby doge] is Hyper-deflationary with an integrated smart staking system built in to reward you, so more baby doge coins are being automatically added to your wallet each transaction. Simply Love, pet, and watch your baby doge grow.
How Does Baby Doge Compare to the Dogefather and Sibling Shiba Inu?
The dog meme token may be somewhat deflationary by its design as holders of baby doge earn them simply by holding. “Watch the amount of baby doge grow in your wallet as all holders automatically receive a 5% fee from every transaction that happens on the Baby Doge network,” the web portal details.
However, there is an abundant supply of baby doge as bscscan.com and other coin market cap aggregation sites show there are four hundred twenty quadrillion baby doge. That’s very different from the Bitcoin (BTC) network’s max supply of 21 million.
The coin trades today for less than a U.S. penny at $0.000000001910 per baby doge. It touched an all-time high (ATH) recently, at $0.000000002014 and it’s only down 5% from the ATH. Similar to the shiba inu (SHIB) coin, it’s got a ways to go before it reaches a U.S. penny in value.
SHIB, on the other hand, is much closer than baby doge, at $0.00000839 per SHIB token. The circulating supply of SHIB is a lot less too, with only four hundred ninety-seven trillion SHIB in circulation today.
The one thing baby doge (BABY DOGE) has that outshines its father dogecoin (DOGE) and its sibling shiba inu (SHIB) is lower transaction fees. SHIB, for example, is an ERC20 token and is forced to deal with fees associated with Ethereum, while dogecoin costs over 2 DOGE to send as the average transaction fee on Thursday is around $0.491 per transaction.
Transacting with BSC and baby doge gives users fees as low as 1 gwei (an Ethereum gas measurement), or around 0.000000001 BNB. There’s no fee data on the baby doge token, but a transaction should cost less than a U.S. penny.
Two brothers have shared the story of how they became millionaires after investing in Shiba Inu, the cryptocurrency nicknamed “dogecoin killer,” for just under two months. Before the investment, the covid-19 pandemic almost killed their business, and the government’s stimulus checks did not last long.
Shiba Inu Crypto Investors Become Millionaires
Two brothers from Westchester, New York, have shared their story of how they went from nearly jobless, and relying on the government’s stimulus checks, to becoming multimillionaires by investing in cryptocurrency, CNN reported Friday.
Tommy, 38, and James, 42, put $200 each into Shiba Inu (SHIB), the ERC-20 token nicknamed “dogecoin killer,” in late February. One Shiba Inu coin was worth a fraction of a cent at the time but one of their friends, whom they called “a crypto expert,” told them that the coin could be a big moneymaker. In just two months, the brothers became millionaires.
Before investing, Tommy said:
I kind of thought about bitcoin — that was once a fraction of a penny and now it’s tens of thousands of dollars, and this happens to people, it’s possible. I trusted my friend and I figured if it went to zero, that’s OK. I thought of it as a lotto ticket that wouldn’t expire.
The brothers also presented their investment idea to their mom, dad, sister, and a few other family members.
“My mother and sister were skeptical but they each put in $100, too. After a few weeks when it was up about 300% they put another $100 in each, and then it kept going up,” Tommy recalled. He added that in total they invested about $7,900 altogether and as of Thursday, their investment was worth almost $9 million.
Prior to the coronavirus pandemic, the brothers made a living by filming weddings. However, the Covid-19 outbreak nearly shuttered their business. Instead of booking 30-40 weddings that year, James said they only did eight weddings.
We kind of fell through the cracks. The government stimulus checks weren’t enough to sustain us. I’m a positive person but it was really tough, and not knowing the future was kind of scary.
Their Shiba Inu crypto investment, however, kept rising. After it shot up to $100K, it kept climbing, Tommy described, elaborating:
We woke up the next morning and it doubled. We were like, ‘Oh my god.’ Then it went up to $700,000 and I told my brother it’s going to hit a million. I kept refreshing my phone.
The next day, their investment hit a million dollars. “The day it hit a million — my mom and sister, they didn’t think it was real,” he recalled.
Bitcoin News recently reported on a few other people becoming millionaires by investing in cryptocurrency. In April, a dogecoin investor became a millionaire after investing in DOGE for two months. He got into the meme cryptocurrency after being inspired by Tesla CEO Elon Musk. Last week, a Goldman Sachs executive reportedly left the investment bank after making millions of dollars in dogecoin.
The meme-based crypto asset dogecoin has seen a phenomenal year, capturing a whopping 19,723% against the U.S. dollar during the last 12 months. Dogecoin’s price gains have pushed interest toward the cryptocurrency, quickly making it a recognizable name. A recently published survey from the web portal gamblerspick.com suggests one out of every four Americans “believe dogecoin is the future.”
Dogecoin Survey Shows Meme-Coin Has Been Getting Attention in the US
In mid-April, gamblerspick.com conducted a study with 1,001 American respondents that are “familiar” with cryptocurrencies. The survey team leveraged the Amazon Mechanical Turk survey platform in order to present a series of questions.
59.3% of survey participants identified as men, while 40.7% identified as women. Gamblerspick researchers also detailed that the respondents were Gen Zers (5.9%), millennials (60.8%), Gen Xers (22.6%), and baby boomers (10.7%).
According to the poll statistics, social media is where people are hearing about dogecoin (DOGE) the most, with 33.7% saying they heard about the coin via social media platforms. 21.7% of the survey participants said they heard about DOGE via word of mouth and “friends and family.”
45% of respondents had heard of Dogecoin, and roughly 27.6% had invested in it. Another standout statistic shows that 30% of the surveyed individuals “believe that dogecoin was the new bitcoin.”
Not all survey participants who invested in dogecoin are pleased with their choices. 40% regretted investing in dogecoin. 48.8% regretted investing in “Reddit-hyped stocks”, like the recent Wallstreetbets’ GME stock hype. 15.2% disapprove dogecoin, while 41.1% are indifferent and 43.6% approve of DOGE.
When it came to considering Elon Musk’s part in the dogecoin hype, most respondents liked what he had to say about DOGE or did not care about his dogecoin opinions.
“Most respondents either approved of or didn’t care when it came to Musk’s Doge-related information,” the survey noted.
More Than Half Invested in Dogecoin to ‘Get Rich’
Toward the end of the survey, Gamblerspick researchers highlighted that roughly one out of every four Americans “believe dogecoin is the future.” 23% of survey participants are confident DOGE will reach $1 per unit this year. 46.4% invested in dogecoin “just for fun,” while 53.6% invested because they saw it as an “opportunity to get rich.”
As far as the cryptocurrency ecosystem, in general, Gamblerspick survey respondents believe the “financial industry” will be impacted the most. The financial industry is followed by “retail,” “casino/gambling,” and “cannabis” respectively.
“Most people thought it would be a perk for Amazon to accept Dogecoin as payment,” the Gamblerspick survey notes. “While other stores were considered, 41.1% of respondents said they didn’t really want any stores to accept Dogecoin.”
At the time of writing, dogecoin (DOGE) was down over 4% during the last day and down 25% over the last week. Dogecoin is exchanging hands for $0.47 per coin but is still up 590% during the last month.
Elon Musk, also referred to in social media as the ‘Dogefather,’ due to its affiliation with the Dogecoin currency, has hinted Tesla could start accepting the currency as a payment for its cars. The company, which is now accepting bitcoin as payment for its cars and holds it as part of its reserves, could also include dogecoin as part of its accepted cryptocurrency roster.
Elon Musk Hints at Tesla Accepting Dogecoin
Elon Musk, CEO of Spacex and Tesla, has hinted today at the possibility of the electric car company accepting dogecoin (DOGE), the now-famous meme coin as payment for its cars. Musk asked today in a poll on Twitter to his fans if they would like this to happen. Unsurprisingly, he got a mostly positive answer, with more than 70% of the polled answering they would like it at the time of writing. https://platform.twitter.com/embed/Tweet.html?creatorScreenName=BTCTN&dnt=true&embedId=twitter-widget-0&features=eyJ0ZndfZXhwZXJpbWVudHNfY29va2llX2V4cGlyYXRpb24iOnsiYnVja2V0IjoxMjA5NjAwLCJ2ZXJzaW9uIjpudWxsfSwidGZ3X2hvcml6b25fdHdlZXRfZW1iZWRfOTU1NSI6eyJidWNrZXQiOiJodGUiLCJ2ZXJzaW9uIjpudWxsfSwidGZ3X3R3ZWV0X2VtYmVkX2NsaWNrYWJpbGl0eV8xMjEwMiI6eyJidWNrZXQiOiJjb250cm9sIiwidmVyc2lvbiI6bnVsbH19&frame=false&hideCard=false&hideThread=false&id=1392030108274159619&lang=en&origin=https%3A%2F%2Fnews.bitcoin.com%2Felon-musk-hints-at-tesla-accepting-dogecoin-for-payments%2F&sessionId=92aad7d823316925de235ad43fc377576286542a&siteScreenName=BTCTN&theme=light&widgetsVersion=82e1070%3A1619632193066&width=550px
Musk is has been one of the main proponents of cryptocurrency in the corporate arena. Tesla is already accepting bitcoin (BTC) as payment for its cars directly on its website, but dogecoin is a relatively unstable currency in terms of price compared to the former, and if it indeed received by the company, it’s unclear if it would be sold for fiat money.
The company bought $1.5 billion in bitcoin last February and it has declared it is holding the bitcoin has received as payments vehicle sales in the long term, after acknowledging they sold 10% of its bitcoin holdings to prove the liquidity of bitcoin as an alternative to cash.
Is Musk Serious?
The question is whether or not this is a serious inquiry to the people? Musk is known in internet social media circles as a big troll, going to the limits of making statements that had affected Tesla’s finances on Twitter. Musk declared last year Telsa’s stock price was ‘too high,’ triggering a selloff that took stock prices 12% low, and earning the ire of its shareholders at that time.
But that has not been the only time Musk has messed up big in social media: In August 2018, Musk tweeted he was planning to take Tesla private, and that he had secured funding to do it. Again, this statement earned him a lawsuit from the SEC, which argued these tweets could be seen as a way of manipulating stock prices up, give that the actual stock price was actually less than the $420 price announced.
However, if this idea really gets executed, it would not be the first time a company associated with Musk accepts dogecoin as payment. Last week, Spacex also announced they had approved the launch of the dogecoin-paid DOGE-1 mission, which would carry a commercial payload to the moon.
The “Full Self-Driving” system that Tesla sells as a $10,000 option isn’t available in subscription form yet, but the car company is already using that idea to boost sales. Reported earlier by Electrek and confirmed in a tweet by Elon Musk, “All Tesla cars delivered in the final three days of the year will get three months of the Full Self-Driving option for free.” https://platform.twitter.com/embed/index.html?creatorScreenName=Rjcc&dnt=false&embedId=twitter-widget-0&frame=false&hideCard=false&hideThread=false&id=1340592138829099009&lang=en&origin=https%3A%2F%2Fwww.engadget.com%2Ftesla-fsd-3-month-offer-011341156.html&siteScreenName=engadget&theme=light&widgetsVersion=ed20a2b%3A1601588405575&width=550px
For buyers going all-in at purchase, the option is like about more advanced capabilities that may come in the future, but with just three months new Tesla owners can use the features currently available:
Navigate on Autopilot: automatic driving from highway on-ramp to off-ramp including interchanges and overtaking slower cars.
Auto Lane Change: automatic lane changes while driving on the highway.
Autopark: both parallel and perpendicular spaces.
Summon: your parked car will come find you anywhere in a parking lot. Really.
Traffic Light and Stop Sign Control: assisted stops at traffic controlled intersections.
Not everyone is happy about the offer however, particularly because of how Tesla advertises its Autopilot “advanced safety and convenience feature” and the “Full Self-Driving” tech. As the the Tesla website notes in slightly smaller print “The currently enabled features require active driver supervision and do not make the vehicle autonomous.”
NTSB member Jennifer Homendy noted the difference in a thread of tweets, saying “‘Full self-driving’ suggests that the vehicle can drive itself right now, without input from a human operator. That’s not true. There should be safeguards in place to prevent such deceptive claims.”
Tesla’s rocketing share price this year has created an army of millionaires – self-named ‘Teslanaires’.
Shares in Elon Musk’s electric car firm have risen more than 700% during 2020 to become the world’s most valuable car company.
But it’s been a roller-coaster ride for long-term investors with wild swings since it joined the stock market a decade ago.
For those who have stuck with Tesla, it has been a very wealthy journey.
This month was a milestone for the car company as it joined the S&P 500, an index of the biggest stocks in the US which includes the likes of Apple, Microsoft and Facebook. Tesla shares rocketed and it became one of the top 10 most valued companies on the index.
Tesla stock is now worth more than the combined valuations of General Motors, Ford, Fiat Chrysler Automobiles and Toyota. Yet, Tesla makes just a fraction of the cars of its more established rivals.
“Tesla is a very polarising stock. It has its fans, many of whom do own Tesla cars, and its fair share of critics, particularly in the financial community, who say the company’s shares are overvalued,” said Will Rhind, chief executive at investment firm GraniteShares.
“Investors that bought shares early on, have done very well and some are now millionaires as a result.”
Much of Tesla’s share price growth has come from its improving car sales, boosted by strong demand from China and hopes of subsidies for electric vehicles. The shift towards electric cars globally has put car companies like Tesla in the sweet spot.
Many investors also believe there is strong growth to come from other parts of Tesla’s business including its self-driving software and battery power storage.
Tesla went public in June 2010 at a price of $17 per share. This week, the price stood at more than $650 – and that’s even after a 5-for-1 stock split earlier this year that boosted the number of shares in circulation.
Given its rapid share price rise this year, even more surprising given it has come during a global pandemic, Tesla critics say it is overvalued.
In a research note earlier this month, analysts at JPMorgan wrote:”Tesla shares are in our view and by virtually every conventional metric not only overvalued, but dramatically so”.
But other investment experts argue not to look at Tesla as just a car company. “Part of the appeal of Tesla for many investors is that it is more than a car company and the success of their batteries will open many revenue streams,” said Edward Moya, a senior market analyst at OANDA.
“Think about the role Tesla is playing in the transition from fossil fuels to electric power and storage. In that sense, the question for investors today is how do you value the technology of tomorrow?” added Mr Rhind.
Tesla also sells solar panels and back-up residential power for homes.
There is an army of fans who believe strongly in Tesla and predict the share price to continue rising, based on a bright future for Elon Musk’s car firm.
Los Angeles-based engineer Jason DeBolt’s first investment in Tesla was 2,500 shares which cost him $19,000. “I first started investing in Tesla in 2013 after purchasing a Tesla Model S and going on a factory tour,” he said. Since then, he has been buying more shares, and the 15,000 he now owns are worth around $10m.
He agreed it has been a roller-coaster ride as a long-term investor and that “it was very difficult seeing the media attack Elon and Tesla. That was worse for me than the share price decline, which I knew would eventually bounce back.”
Mr DeBolt is a member of the Tesla Shareholders Club and regularly chats with other investors via the Facebook group.
New York-based Scott Tisdale began investing in Tesla when he first laid eyes on the Model S back in 2013 and has built up a holding of around 4,000 shares which are currently worth around $2.8m.
“I am not finished investing in them yet because I think their real story is just about to begin and people have been saying the stock is ‘overvalued’ since before the time I began to buy it,” he said.
“As amazing as it is to be included in this growing group of ‘Teslanaires’, it is almost as satisfying to be able to tell all the naysayers ‘I told you so.'”
The road ahead
Experts say it is unlikely Tesla’s share price will see growth of more than 700% again next year, limiting the number of new Teslanaires created.
They also point to growing competition from the likes of Apple which has revitalised plans to build an electric car along with Chinese rivals. “Tesla’s competition has bigger pockets and can afford to take bigger risk,” added OANDA’s Mr Moya.
Investment experts also caution about investing in a single stock and recommend funds that spread your money across a number of companies.