Tesla Model 3 price was shown above Bitcoin on CoinMarketCap for many days. A few months ago, you needed two Bitcoin to buy one Tesla Model 3. As I look at CoinMarketCap today I can see selling one Bitcoin , buying one Tesla Model 3 for $37,990 and having lots of spare change. Or should I HODL Bitcoin and delay gratification on Tesla?Bitcoin bulls such as myself think you will be able to buy two Tesla Model 3 cars with a single Bitcoin in the near future.
So we hoard rather than spend.
Bitcoin bulls who hoard Bitcoin maybe wrong. Maybe we should sell. However there are enough Bitcoin hoarders for this to be a real force in the market that prevents Bitcoin becoming a medium of exchange.
Sure I can buy a Tesla Model 3 with one Bitcoin today. Why do that if I think I can buy two Tesla Model 3 cars with that same Bitcoin in the near future?
If I hoarded Fiat currency rather than spending the economy would crash. That is the deflationary nightmare of those reviled central bankers and why they try so hard to create a little bit of inflation.
I believe that the market will create a solution to this problem via Bitcoin lending. This is the next big crypto opportunity. This is simple lending based on assets under control of the lender. It works with other assets, where it got by names such as Lombard Loans. Combining this with decentralised storage/custody is a problem to br solved. Lets say you have some Bitcoin and want to buy a Tesla Model 3 andy don’t want to sell your Bitcoin. If you could borrow $37,990 using you Bitcoin as collateral you problem is solved.
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