Tencent Technology News reported on July 22 that three bitcoin advocates, Elon Musk, CEO of Tesla and CEO of SpaceX, Jack Dorsey, CEO of square and CEO of twitter, and Cathie wood, CEO of Fangzhou investment, which is known as “sister wood”, On Wednesday, they jointly participated in the online conference “the B word” sponsored by crypto Council for innovation.
According to the website of the event, “the B word” aims to uncover the mystery of bitcoin and eliminate its stigma. Bitcoin and other cryptocurrencies were intended to be decentralized digital currencies, but in recent years they have become an investment. Prices can also be extremely volatile. Before the onset of novel coronavirus pneumonia, bitcoin prices were slightly below $9000. It peaked in April, almost $65000.
Musk, Dorsey and wood jointly participated in the sub forum of “bitcoin as an economic enabling tool” at 14:00 EDT on July 21 (2:00 Beijing time on July 22), talking about their views and support for cryptocurrency. The moderator of this sub forum is Steve Lee, the head of square crypto, the square encryption business.
The online conference, proposed by Dorsey, aims to promote and increase the adoption rate of bitcoin and encryption assets. Although musk and Dorsey sometimes have conflicting views on the future of bitcoin and bitcoin mining, they still agreed to hold the event at the end of last month and received a positive response from wood.
Musk’s comments have made bitcoin investors go through a crazy journey this year. He initially expressed strong support for bitcoin and briefly added the bitcoin tag to his twitter profile in January. Tesla then announced in February that it had purchased $1.5 billion worth of bitcoin and would begin to accept it as a payment method for car purchase. However, musk then changed his view of bitcoin and announced in May that Tesla would stop accepting bitcoin payment because of the huge energy consumption of bitcoin mining. He also released an expression pack, suggesting that he no longer liked bitcoin. However, in early June, Musk’s attitude toward bitcoin reversed, saying that Tesla would accept bitcoin payment again when at least half of bitcoin mining was confirmed to be powered by clean energy. In response to Musk’s reversal, South African billionaire Magda wierzycka, chief executive of financial services company sygnia, believes that he has been manipulating the bitcoin market for his own benefit.
Compared with musk, dorsebut’s support is more firm. Dorsey has provided personal and professional support for bitcoin in the past. At the bitcoin 2021 conference in June, he explained that he thought bitcoin was a way to prevent currency depreciation and speed up cross-border capital transfer. “Bitcoin has absolutely changed everything,” he added. I don’t think there’s anything more important to do in my life. ” In 2018, Dorsey said that bitcoin will eventually become the only currency in the world, and everyone will use bitcoin in the next decade or less. Square, the mobile payment company he runs, has allowed consumers to buy and sell bitcoin on its cash app since the end of 2017. In addition, the company has bought bitcoin worth about $50 million. Not long ago, square also announced that it was creating a new business focusing on “decentralized financial services” around bitcoin.
Like Dorsey, wood is a strong supporter of bitcoin. When bitcoin plummeted in May, wood stood up and yelled, “I still think the price of bitcoin will reach $500000. Bitcoin is currently experiencing a short run, but not necessarily at the bottom. ” However, she said at that time that the current bitcoin market is very emotional, and the market will be very unstable, and even have a significant impact on the stock market. So it may not be a good investment opportunity in the near future. Although musk has avoided bitcoin because of its environmental impact, wood believes that once renewable energy is integrated into bitcoin mining technology as she expected, “Musk will come back and become a part of the ecosystem.”
The following is a summary of the speeches made by musk, Dorsey and wood at the Forum:
Buy a car with bitcoin again
Musk said Tesla may once again begin to accept bitcoin as a way of payment. Once due diligence is conducted on the amount of renewable energy used to mine bitcoin, Tesla is likely to re accept bitcoin as a payment method. “It looks like bitcoin is moving more towards renewable energy, and the mines of a number of heavy-duty coal-fired power plants in use have been shut down,” he said. I would like to do more research to confirm that the utilization rate of renewable energy is likely to reach or exceed 50%, and the proportion is on the rise. If so, Tesla will resume accepting bitcoin. ”
In March, he tweeted that Tesla now accepts bitcoin payments. However, in the face of strong protests from some environmentalists and investors, Musk’s position has changed. In May, musk tweeted that Tesla would stop accepting bitcoin payments for environmental reasons. However, in mid June this year, musk tweeted that if bitcoin mining business relies on about 50% of clean energy, Tesla will once again accept bitcoin trading as the payment method for the company’s products.
Despite the potential environmental risks, musk reiterated his overall support for cryptocurrencies. “One thing to note when using cryptocurrency, especially bitcoin, is that using a little too much energy is not necessarily good for the environment,” he said “In the long run, renewable energy will be the cheapest energy, but it won’t happen overnight,” Musk said. But as long as the mining industry makes conscious, determined and practical efforts to turn to renewable energy, it is clear that Tesla can support this. ”
Individuals hold cryptocurrency
Musk also said that the only publicly traded stock he owns is Tesla stock. In addition, he also owns some bitcoin, dogcoin and ethereal coins“ The only meaningful thing I have outside Tesla is SpaceX.
Musk also said he has long held bitcoin“ If the price of bitcoin falls, I will lose money. I may sell some bitcoin, but I won’t clear it completely, “Musk said“ I absolutely don’t believe in selling at a high price or anything like that. I want to see bitcoin succeed. ”
Musk also confirmed that both Tesla and SpaceX currently hold bitcoin, but there are no other cryptocurrencies. Musk did not disclose how many shares SpaceX holds. However, according to his comments, SpaceX may be further involved in the field of cryptocurrency. “Bitcoin itself can’t be a world monetary system at the base level, but at the second level, it’s possible, depending on how it’s implemented,” Musk said. He said SpaceX was “playing a role” in bitcoin’s vision for the future, although he did not further clarify how the company would advance that mission.
Two thirds of personal and professional pain comes from Tesla
On Wednesday, musk said Tesla’s electric car and solar businesses may help bitcoin miners switch to renewable energy, but are currently constrained by tight battery supplies. He also acknowledged that Tesla has yet to make its custom-made 4680 battery designed for use in electric vehicles or energy storage systems.
When forum host Steve Lee asked musk what the energy intensive bitcoin industry could do “to accelerate the transition to renewable energy” and “can Tesla energy play a role”, musk replied, “well, I think Tesla can play a role.” Musk also suggested that the whole reason Tesla exists is to make the world transition to clean energy. “I would say that I’ve had some pretty tough life experiences, and Tesla may be responsible for two-thirds of the personal and professional pain, which gives you a sense of perspective,” he said
Tesla clean energy business
Tesla has been selling commercial and residential solar installations since it acquired SolarCity for about $2.6 billion in 2016. But before entering the solar business, Tesla created and began selling energy storage products in 2015, including a home backup battery called Powerwall, as well as larger batteries that can store intermittently generated solar or wind energy, so that they can be used whenever the utility needs them.
Mr musk said Tesla had installed many of these utility scale energy storage systems, which help utilities “balance the grid load,” including in South Australia and elsewhere. But he pointed out that battery production currently limits production“ In fact, the limiting factor for us at the moment is television production. As a result, we need to produce Tesla’s internal batteries in-house as well as increase the supply from suppliers. ” Musk also reiterated that even if Tesla can make its own batteries, it will still rely on other battery manufacturers. Its current battery suppliers include Panasonic, LG and Ningde times.
“Generally speaking, when I talk to our suppliers, they say,” how many batteries do you want? ” I said, “how many batteries can you make?” You know, because sometimes they worry that Tesla will compete with them in the battery business? I said no, no, we need a lot of batteries“
In the twitter communication with fans after the forum, musk tweeted that Tesla still “has not fully completed” the “mass production” of the custom-designed 4680 battery. He also admitted that Tesla sold Maxwell technologies’ supercapacitor business and other assets to ucap power, a San Diego based start-up. The company is led by Gordon Schenk, a former vice president of sales at Tesla Maxwell. Tesla initially acquired Maxwell technologies in 2019, with a transaction value of more than $200 million. The exact terms of the sale to ucap power have not been disclosed, but may be discussed during Tesla’s second quarter earnings call on Monday, July 26.
Musk also said that energy storage systems that combine solar and wind energy are not the only way for bitcoin to make the transition to cleaner energy. He supports existing hydropower, geothermal and nuclear power to reduce the environmental impact of bitcoin mining“ My expectation is not that energy production must be as pure as snow, but it can’t use the world’s coal either. In this case, it’s hard for Tesla to support. I do think long-term renewable energy will actually be the cheapest form of energy. It will not be achieved overnight. ”
Twitter accepts bitcoin payment
During the forum, musk asked Dorsey whether twitter would consider accepting customers to buy ads with cryptocurrency? Dorsey said “of course,” although that’s not his main concern. “We should be able to accept whatever form of payment customers want,” Dorsey said
Dorsey pointed out that if cryptocurrency had existed at the beginning of the Internet, the advertiser model might not have been so popular in the field of social media. But because advertisers are reality, he focuses on promoting the decentralization of encrypted communities. Dorsey said his “biggest focus” was bluesky, his decentralized social networking project. According to Dorsey, it’s too early.
Dorsey also explained some of the reasons for his love for bitcoin at the event“ What really drives me to think and stimulate my passion is, if the Internet has a chance to acquire a native currency, what will it be? For me, it’s bitcoin because of these principles, because of its resilience, “Dorsey said. He refers to how the bitcoin community sees cryptocurrency as a way to help people without bank accounts and communities with inadequate support services“ But what motivates me most is the community that drives bitcoin, which reminds me of the early Internet, “Dorsey said“ It’s very principled, very strange, and always evolving. It reminds me of the early Internet, “he said.
Dorsey has high hopes for the future of cryptocurrency“ My hope is to create or help create world peace, “he said“ It will be long-term, but my hope is absolutely peace. ”
Square to open source
Dorsey then talked about his payment company square, which is developing solutions for the bitcoin ecosystem. Although square holds $255 million of bitcoin and handles bitcoin transactions on behalf of its users, Dorsey stressed that the financial value of bitcoin is only part of square’s concern.
Dorsey said he wanted square to work with bitcoin without disrupting the community. With that in mind, square hired open source bitcoin developers to develop the projects of their choice. Square has also set up the cryptocurrency open patent alliance (Copa) and opened its patent resources in an attempt to protect developers from patent fraud. Dorsey also mentioned that square’s upcoming hardware wallet, unlike its main applications, will not maintain the custody of users’ funds“ Everything we do in this area will be open source, “he said.
“It’s important for institutions and companies like us to consider entering this field and contribute to the community,” Dorsey said. We can’t just regard it as an asset and an investment vehicle. It’s a thing that could change everything. ”
Inflation hedging tools
“Sister wood” defended bitcoin’s role as a hedge against inflation in a forum on Wednesday. In some cases, she said, bitcoin would be used as a hedge against inflation, taking emerging markets as an example“ Many emerging markets are suffering from severe inflation – in other words, the purchasing power of these populations is declining. So they will turn to bitcoin and other ways to maintain purchasing power, “Wood said. She made the comments when asked what advice she would offer to institutions that want bitcoin on their balance sheets.
“Bitcoin will be more environmentally friendly than gold mining or the traditional financial system,” Wood said（ Compiled by Tencent technology / Wuji)