Because its supply is fixed and predetermined, Bitcoin is often viewed as a hedge against inflation.
Inflation has started to hit the headlines hard over the past couple months, meaning Tesla was well ahead of the game when it became the largest company in the world to hold Bitcoin on its balance sheet in February.
At the time of Tesla’s $1.5 billion Bitcoin buy, it also started accepting Bitcoin for car purchases. The combined news caused the flagship crypto’s price to rise $8,000 in a single day.
Surprisingly, Tesla backtracked its plans in May, pausing Bitcoin payments until the majority of mining came from renewable energy.
When Tesla put Bitcoin on hold, Bitcoin’s price tanked under a predictable avalanche of media FUD. From the start, however, there were signs that Tesla was planning several moves ahead, and thinking bigger than just Bitcoin.
The first clue came the day before the pause announcement
, when Elon tweeted a poll to ask if Tesla should accept Doge.