Elon Musk understands how money works and while many in crypto do not, money needs to have certain properties.
First of all, it has to be divisible, then a store of value, a representation of wealth, and also it has to be efficient. Cheap, if possible free of fees, and fast as lightning. All this in a secure environment and decentralized. Separated from State control, or the private banks reach.
Elon Musk recently found fairness in the point made by Kim DotCom on Twitter a few weeks ago.
Source: Twitter
Kim Dotcom explained that Bitcoin Cash works. As one pioneer to another, Kim DotCom gave a piece of perfect advice to Musk, that found correspondence.
Why Should Musk Adopt Bitcoin Cash
With this post, I will try to make a convincing case for Elon Musk to begin the adoption of Bitcoin Cash in his companies. Not just to accept BCH for Tesla car payment, but to fully integrate Bitcoin Cash as a financial network in Tesla and SpaceX.
Musk should consider adopting Bitcoin Cash:
for Tesla cars purchases
for corporate payments
inside the company ecosystemÂ
Accept Bitcoin Cash for Tesla car purchases
The first recommendation is something many are pushing lately, and if this happens it will be great news, however, I think that we should be targeting something more than that.
The most important features of Bitcoin Cash is that it is cheap and fast. For the time being it doesn't matter if someone buys a Tesla and pays $50 fees. However, Bitcoin fees have this tendency of increasing on average every year, and the network doesn't scale at all. This means that fees could rise astronomically in the future making it an inefficient method of payments even for high-cost purchases.
Bitcoin Cash has stable low fees and according to recent network usage, it scales to accommodate mass adoption. It is a better solution than Bitcoin for any payment.
Use of Bitcoin Cash for corporate payments and accounting
A company of the level of Tesla or SpaceX has huge logistics and proceeds with millions of cash transactions each month, both internal and external to the company. These payments can be to suppliers, marketers, lobbying specialists, or different departments inside the company. The established bank payment systems have been milking the companies for decades while providing minimum services and outdated systems.
The cost of these payments will be reduced using Bitcoin Cash and the profitability of Tesla and SpaceX will be increased. Each payment will be instant, very cheap, and transparent, having being recorded permanently in a public ledger (the blockchain). No action can tamper with the data recorded in the secure Bitcoin Cash blockchain.
Since Tesla is a globalized economy of its own, having recorded every payment permanently in an immutable and secure blockchain, will reduce funds misappropriation or thefts and increase financial oversight on the various company departments.
The cost of running a business in a globalized environment will be reduced greatly with the use of Bitcoin Cash.
Increased transparency of payments
Low cost of transactions (~$0.002)
Virtually instant payments
No third-party risk involved
Wages can be also optionally or partially paid in Bitcoin Cash. For all Musk's companies, it will bring the same benefits of lowering costs.
With Bitcoin Cash the above is achievable. It should be seriously considered by Elon Musk to begin research on more efficient payment networks.
We all love Musk and his vision for humanity. Expansion in space is of utmost importance for our race and any financial network that can help us achieve just one more step in this direction, is important to at least taken into consideration.
Adopt Bitcoin Cash in the Tesla/SpaceX ecosystems
Musk could promote the adoption of Bitcoin Cash in company vending machines and shops or extra services offered to Tesla and SpaceX employees. Adopting Bitcoin Cash for this kind of microtransactions will be of benefit to both employees and companies.
Most Tesla employees will be probably using debit/credit cards, or contactless bank wallets connected to mobile apps. The use of bank services comes with huge charges by the banks. These charges are not paid by the consumer but the receiver ( the merchant) and they vary between 0,10-0,50% for each transaction.
The fees are displayed in the merchant's account the following working day. This is the cost of the third party (banks) that Bitcoin Cash eliminates.
This cost can be reduced to a minimum of less than one cent for each microtransaction performed inside Musk's corporations.
This reduced cost represents opportunities for better deals with these side-services offered for Tesla and SpaceX employees and will increase employee satisfaction which is consequently improving productivity.
Any kind of reduction of unnecessary cost created by a third party helps a company in the long term. The organization that a company represents needs to exclude any added cost to operate more efficiently. Vendors, shops inside the huge company buildings, and any other services offered to employees and visitors, can be offered at less prices by cutting down the cost of payment processors. Introducing Bitcoin Cash will result in improving this condition.
SpaceX - StarBase
Image Source: Memory Alpha
Tesla for Elon Musk is not the main event. It is only a stepping point that helps him proceed with his main dream, which is SpaceX.
SpaceX is going to be huge. It will become the most valued company for the next decades and Musk has plans to create a whole city around the SpaceX launching site in Texas, calling it "Starbase".
Inside Starbase, there will be a whole ecosystem and will require an efficient economy, to be productive and focused on the common goal.
With Bitcoin Cash, we achieve lower costs and high transaction speeds. The network has proven it can scale to cover any kind of adoption. It is decentralized and autonomous, with consensus at the core for the decision-making process.
Problems that Musk identifies with Cryptocurrencies
Elon Musk doesn't like the scarcity of Bitcoin. However, he added Bitcoin as payment and had Tesla invest in it, possibly thinking that a part of Tesla's economy could test new financial technologies. He keeps insisting on his Doge tweets, no matter if he never owned any. I think that Bitcoin Cash is closer to what Musk wants and understands as a method of transferring value. It is scarce and as Bitcoin has an infinite supply but this is no obstacle to scaling in global adoption levels.
A major drawback in most cryptocurrencies is the centralization of wealth by whales. A very large proportion of every cryptocurrency is owned by just a few individuals. It is like that with many cryptocurrencies that could have had utility like Doge and Nano.
This is what a few projects have understood early and wanted to have a better distribution of supply. Stellar, for example, was planning to distribute 50 billion XLM with airdrops and campaigns, but failed massively, as the marketing management was inefficient. Stellar later abandoned this plan and decided to burn the 50 billion supply which was a dubious decision that didn't bring results to increase adoption of this coin. The distribution was better, but the marketing failed and this resulted in Stellar having limited network growth.
Doge would not be perfect for Musk either though, even if the supply was scattered in billions of wallets belonging to different users. Security in Doge is a problem worth considering. While there was never any 51% attack on Doge, it still has a weak hash rate, just 250 TH/s, which probably isn't enough to avoid big problems if an attacker with enough rented hash power decided to reorg transactions.
Final Thoughts
Bitcoin has reached recently 200 EH/s hash rate, but fallen sharply the last few days causing concerns over the centralization of mining in certain locations in China (Xinjiang). This has also created a spiral of events, with transactions getting stuck in the mempool, fees reaching an all-time high, and blocks taking hours to be mined.
Image Source
This is the example we have seen again and again with Bitcoin, and Musk knows that this network can't scale. This is the reason he is always looking for a better financial network that could become the basis of the economy in his enterprises.
I think that Bitcoin Cash can become a catalyst in Musk's enterprises that can effectively change its economic model. Bitcoin Cash is able to become an example of decentralized cash used in a private economy that has plans for human expansion in the solar system.
We may be thinking big, but this is our nature as humans. We have endless possibilities and Musk is a visionary that is asking the right questions and taking brave decisions. I hope to see one day Tesla and SpaceX adopting modern and decentralized financial solutions and that one of them will be Bitcoin Cash.
Lead Image from Unsplash (free image from Beat Jau)
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I agree on your statements, I hope that one day, Elon Musk will surprise us with his tweet saying that Bitcoin Cash is accepted on Tesla. Looking forward to it!