Undoubtedly the biggest economic news yesterday was Elon Musk and Tesla pumping $1.5 billion into Bitcoin, and announcing you can buy Tesla products with it. 2 weeks after the WallStreetBets subreddit exposed Wall Street’s corruption through Gamestop stock, there is less trust than ever in financial institutions and the U.S. dollar. Musk is the richest person in the world, an advocate for free markets, and recently a populist hero. This move is a turning point in mainstream acceptance of cryptocurrency. Other large companies and organizations now have the go ahead to invest as well.
There were many discussions about the news yesterday, and I think the best one is this YouTube video by Digital Asset News. In it, the host Rob shares reporting by CNBC (whose reputation is trash after the Gamestop drama), and properly critiques it. He then gives good reasoning why other corporations will move into Bitcoin. Rob calls it a flywheel effect.