Elon Musk came out with the news that he would allow Tesla purchases to be made in BTC. He also stated that BTC would not be converted into fiat, but would remain BTC.
All I heard after that were these fucking stupid #numbergoup idiots saying, "If you buy your Tesla with bitcoin, you're stupid. The way bitcoin is going up, you're eventually buying a $250,000 car." These morons are the same fools who will be overpaying on taxes, completely oblivious to the larger implications of bitcoin and crypto in general. These fucks actually think they are smarter than Elon FUCKING Musk.
First of all, let's debunk these idiots in terms of actually paying too much for the Tesla. These fucking morons are so fucking stupid. If you're here, you're in the right place.
Paying for Your Tesla
So let's say you want a Model 3 that costs $35k USD. You have more crypto than that, $50k worth, $100k, whatever. You put that crypto in one of the many protocols that allows for overcollateralized loans — Cream, Aave, Compound, Yield.app — I mean, take your pick.
You then borrow a stablecoin. You don't borrow fuckin BTC. So take out $35k worth of USDT or BUSD or UST or whatever.
You then swap that $35k USDT/BUSD/UST for BTC. Let's just say it's 0.5 BTC. Use that 0.5 BTC to pay your Tesla bill.
You PAID in BTC, but since you BORROWED in USDT, you're paying back USDT. You're not paying back BTC. Your loan balance remains fixed at $35k USDT (plus interest). If bitcoin goes up to $500k, you still only pay $35k USDT back to the protocol. Get it? (Plus you still own the BTC! You get the benefit of the gains there!)
Let's say you don't have $35k worth of crypto. Let's say you only have $20k.
You need like $7k for the down payment and $524/month for the payment if you stretch out the loan 60 months.
Split your $20k into 2 $10k stacks. The first part is the same. Take the first $10k and put it into an overcollateralized loan platform and borrow $7k from it. (If you're worried about volatility on crypto, change the $10k into USDT before you put it in.) Important part is that you borrow $7k USDT, swap it into BTC, and pay with that. Again, you're paying IN bitcoin, not WITH bitcoin. Your borrow balance is still denominated in USDT!
With the other $10k, you need to find a yield farm that pays out $17.46/day. That's a 0.17% interest rate per day or 5.24% per month, and it's very doable in crypto. Read my shit to find numerous ways to do that. Swap your monthly rewards into BTC and pay Elon. This means your monthly payment is free. You may have to manage the farms a bit, move them around, but hey, it's a free Tesla. Do the work.
Here's the larger point. You're not buying a Tesla with fucking bitcoin. You're buying the Tesla with USDT that you SWAPPED into bitcoin to pay Elon in the denomination he requires. Fucking dipshit fucks don't understand shit. And these are people who claim to be expert crypto traders and have hundreds of thousands of followers!!!!
The Bigger Picture
Here's the bigger point. Musk is trying to give you idiots a wink and a nod and a way to create a system outside of the failing US fiat system.
Right now, the only way that the US government can tax your crypto is when it is exchanged back into central bank fiat for your purchases. In most cases, until Elon did his big brain move, you would get taxed when you turned your BTC back into fiat to buy coffee or whatever. Elon is trying to help you get around this.
By putting BTC on his ledger, saying you can pay in BTC and not turning that BTC back into fiat, Musk is creating a system outside of US fiat. It can and should be argued that your BTC value is never returned to US fiat, and therefore, the US government has no right to tax it. He's setting this up for us all, but he can't just come out and say that shit out loud. There must be a groundswell of people who understand and fight for this, professionals and consumers alike. If there is enough intellectual and political force behind that movement, then the government will have no choice but to set the precedent that purchases made in BTC that are not converted into fiat cannot be taxed.
The government does not have the means to tax crypto. They are taxing your citizenship. I'll say this until you idiots get it.
And you fucking faggits who think you're so smart, you can miss my comment section with that bullshit you think you know about tax law. Unless you're an accountant or a lawyer, I don't want to hear shit from you about this. Even if you are, don't come in with what you think you know. Bottom line is this market is brand new. It HAS no precedent. The government is putting forth a bunch of scary regulations to make you believe you have to pay taxes that you don't have to. But if you just pay, pay, pay, then they WILL have precedent.
The only comments I want are from professionals who are using their intellect and expertise to FIND A WAY TO MAKE THIS PRECEDENT. Why the fuck are you an accountant or an attorney if you just bend over to the government's interpretation? Isn't that the entire point of being a financial or legal professional — it gives you the intellectual resources to back up the opinion/interpretation that BENEFITS YOUR CLIENTS? Fuckin man up! BE somebody, goddammit!
We can MAKE this market. This is something we can build. We do not have to sit back and accept regulation from a bunch of pencil pushers. When are people going to stand up to the corruption of pieces of shit like Jay Clayton who make regulations, then turn right around and make millions helping rich people avoid those regulations? Are you going to sit back and take it? What's more — are you going to spit in the face of folks like Musk who are trying to give you morons a way out? Time will tell, and I think I know the answer for most of you, but I'm reading between the lines here. And I'm going to take full advantage of every piece of leverage I have to make sure my money goes to my family, not to making bombs and killing children.
You fucking idiots who just bend the fuck over and get assfucked make me sick. Especially when your shit doesn't even make any sense. If you use crypto properly, you don't pay bitcoin for a Tesla. You just pay IN bitcoin. AND you get to possibly avoid being taxed on it. Dumb fucks.
And let me also just say, I'm not a legal or financial professional. (Or I might be. Who knows.) But if I was reading this, I'd say that the questions raised here at least deserve to be looked into. So why wouldn't you call your properly accredited legal or financial professional and put these issues to them if you're in crypto?
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