In 2021 Elon Musk, CEO of Tesla and SpaceX, moved the latter company to Texas and subsequently tweeted the need for more housing in the Austin, Texas area. Housing prices are booming in Texas, and the demand has surged as engineers are higher for both Telsa and SpaceX. There is a convergence between the two companies and the revenue generated from Tesla coming from sales and surplus renewable credits. While zero-emission vehicles will continue to gain traction worldwide, Tesla will need to produce other revenue streams.
Bitcoin as a Currency on Mars
Tesla announced in 2021 that the company was making a substantial investment in digital coins. In Tesla’s filing with the United States Securities and Exchange Commission, the company reported that it was updating its investment policy to be more flexible in diversifying and maximizing returns. This announcement meant that Telsa was going to investing in alternative assets such as digital coins.
Many speculate that Tesla’s investment in and acceptance of Bitcoin as payment is a significant signal of the company’s direction. Additionally, Musk believes that a digital asset would be the best currency for intergalactic travel. Musk is also the CEO of SpaceX, the company intending to set up a colony on Mars.
Bitcoin offers a better solution than fiat currencies for securely transferring value between planets on a trusted network. SpaceX’s colony on Mars would be able to trade locally using a convenient local medium of exchange without any middlemen or concerns about inflationary monetary policies on Earth. Bitcoin offers people a better way to transact using online trading and integrate economies between planets.
Producing Energy for Bitcoin Using Telsa
Using decentralized micro-energy sources for Bitcoin mining
The process of creating bitcoins requires extreme volumes of electricity, as miners need to use computing power to verify transactions. The process is tireless, and Tesla has found a way to sit in the middle and help the process. Tesla’s other businesses produce and sell solar panels, solar roofs, and batteries. The batteries are used in its cars and store electricity for residential solar systems. One of the benefits of residential solar systems is that they can feed surplus energy into the grid. The local power company can even provide a customer with a rebate based on the energy that they give back to the grid for others to use. The batteries that handle this at Tesla are called Powerwalls. These power walls can store that surplus energy and power various things in your home, including air conditioners, and charge your Tesla electric vehicle.
Additionally, the surplus energy from Tesla’s Powerwalls can be rerouted to run crypto mining operations. Without crypto mining, the surplus energy is either wasted or stored and sold for pennies on the dollar. Tesla and other energy companies can turn excess power into a digital asset, like Bitcoin, that generates revenue.
Making a Base in Texas
Tesla has moved part of its operation to Texas from California during the pandemic, and the move has generated a lot of demand for employment in the Austin, Texas areas. Austin real estate has boomed, in the wake of the movement, causing a housing crisis as companies look to build up or move their headquarters to Texas to avoid the high costs of living and taxes associated with California and New York. Additionally, Texas does not have a state income tax that allows employees to experience savings on their paycheck.
In response to the interest, Austin saw record housing sales in 2020. According to the Austin Board of Realtors, housing prices in the Austin area hit a record in February, leaping over 24% year over year. The Austin area has an average housing price of over $800,000 and a median price of over $500,000. The median housing price in Texas for March was nearly half of Austin’s price at $277,900. SpaceX and Tesla CEO Elon Musk tweeted an urgent need to build more housing in the greater Austin area.
The Bottom Line
Tesla and its CEO Elon Musk are forging a new path that includes energy and alternative investments. The company has moved its manufacturing to Texas to save tax revenue and has helped in creating a housing shortage. Prices are skyrocketing, making it more difficult to hire engineers in the area. At the same time, Tesla is attempting to generate an ecosystem that will allow it to use digital coins when the company eventually colonizes Mars. The concept of using a digital coin instead of a fiat currency to transact in a local environment makes sense. To assist in the process, Tesla has created a Powerwall that will allow residents to sell their electricity back to the grid, which can then be used to create digital coins that are on the blockchain.