SpaceX and Tesla CEO Elon Musk has had an interesting year so far.

In January he overtook Amazon founder Jeff Bezos for the first time in the horse race for hoarding wealth. Then he got himself mixed up in the r/wallstreetbet Gamestop insanity, boosting the movement with his "Gamestonk!!" tweet, and has remained a part of the similarly strange speculation around the meme "currency" known as Dogecoin.


Then in early February Musk announced that he was taking a (short-lived) break from Twitter following a major recall of Tesla vehicles and the explosive landing of SpaceX's SN9 rocket — the second test to end in flames in a matter of weeks. But now there are once again some positive headlines for Musk to bask in, as Tesla has turned some impressive profits in February — not from its car sales, but from a major investment in bitcoin.

Just two weeks after Tesla filed paperwork on its January purchase of $1.5 billion in bitcoin — as well as their decision to accept the cryptocurrency as payment — the price of bitcoin has risen by more than 50%, reaching an all-time high of more than $58,000 on Sunday. It has since waned from that peak, but the highly volatile digital currency is still valued well above the price at which the car company bought in.

Depending on when in January the car maker made their purchase, they might have nearly doubled their money. One analyst noted that, if Tesla had sold their bitcoin at the peak price, they would have realized around a billion dollars in profit — more than they netted in the entirety of 2021 from the sale of elctric vehicles and solar energy equipment. With that said, why would a company that ostensibly exists to make cars be investing in cryptocurrency in the first place?

Responsible Investment or Shady Business?

According to their filing with the Securities and Exchange Commission, they made the purchase in pursuit of "more flexibility to further diversify and maximize returns on our cash." But is that really what investors gave them that cash for?

If Tesla shareholders wanted to invest in bitcoin, they might have done so directly. And if they wanted someone to be using their money to make prudent investments, they could have given it to an investment firm. Surely they invested in Tesla because they believed in the company itself and in the future of the solar energy and electric vehicle industries.

So why mess with something like bitcoin, which is so far outside their supposed field? One answer is in the increasing financialization of the economy at large.

Noam Chomsky - Financialization of the Economy www.youtube.com

The value of publicly traded companies is increasingly divorced from any product they make or any service they provide to customers. Instead, their stock becomes their true product, and they boost the value of that product by buying it back from investors, leveraging their assets to receive loans, and pumping as much money as they can into profitable investments.

While those profitable investments can include expenditures for new equipment, factories, and employees, there is a limit. There are only so many people looking to buy electric vehicles and solar roofs. If the value of Tesla stock has risen so much that investing that money in manufacturing would outpace the market, then they owe it to their investors to find somewhere else to turn a profit.

This opens the question of whether they should still be considered a car company, or if they're now just an investment firm with heavy ties to the solar sector. But apart from that, there's still the question of why they chose bitcoin above other investments —especially when Musk has staked his claim on a more environmentally friendly future, and bitcoin mining wastes as much energy a large country.

Considering the currency's general upward trend — despite dramatic shifts — part of the reasoning might have to do with providing some cushion now that they're accepting bitcoin as payment. If a bitcoin millionaire buys a fleet of Teslas when the currency is at a peak, Tesla could end up losing a lot of that value by the time the cars are delivered. But if that's folded into a larger bitcoin investment that can (probably...maybe) be expected to continue increasing in value in the long term, it's not a big deal.

That would make a certain amount of sense. But if we were being less charitable, we could look at Elon Musk's personal history of using his social media to influence investment and the price of cryptocurrency, in particular.

In 2018 Musk was sued by the SEC, who alleged fraud over a series of false tweets in which Musk said he had secured funding to take Tesla private at a price of $420 per share. At the time, Tesla was valued at closer to $350 per share, and Musk later acknowledged that he chose the figure of $420 as a "funny" reference to cannabis.

That dumb joke led to a 14% jump in Tesla stock, amounting to hundreds of millions in value for Musk. But even that doesn't compare to what Elon Musk has been able to do with the value of cryptocurrency and meme stocks.

Over and over his tweets have sent their values soaring. And Tesla and SpaceX, there is no concrete output of cryptocurrency. There are no cars that can be recalled and no rockets that can blow up.

Pure Hype

While Tesla and other companies can put some distance between their profits and their actual productive output — relying more on investments, stock value, and hype — there are still real-world products at the core of the operation. When sales are down or one part among thousands is revealed as faulty, the company can take a major hit. That's not an issue with bitcoin.

While some cryptocurrencies have a value tied to a recognized asset, bitcoins only value lies in its perceived worth. And, unlike the dollar and other fiat currencies, it's not even tied toward a government's ability to collect taxes.

When more people want to buy it, the price goes up, when fewer are willing, the price drops, and there are no quarterly earnings or product reviews attached to it. Short of an undiscovered fault in the blockchain technology at bitcoin's core, the price is purely subject to hype. And that is an area where Elon Musk thrives.

With more than 47 million followers on Twitter — in the top 25 of individual users on the platform — musks often inane, memeified thoughts are guaranteed a wide audience. And when he sends some of that attention toward a meme stock like Gamestock, or toward a cryptocurrency like dogecoin, he can be sure that the value will see a spike.

Lately, however, he has been casting doubt on dogecoin and shifting his attention toward bitcoin. Perhaps he wants to see how far he can push the power of his hype.

Rather than using that power to manipulate Tesla's stock — which got him in trouble before — he could be using his considerable corporate control (with minimal personal liability) to shift his company's value into an area where he has more freedom to comment, speculate, and drive interest under the cover of "humor." That would certainly explain some of his bizarre, s***posting of late.

If so, the experiment has already paid off. Along with recent developments like the addition of bitcoin to Apple Pay, Tesla's bitcoin announcements on February 8th — along with a lot of dumb tweets — have contributed to the currency's steep rise.

Of course the alternative is that the richest man in the world is genuinely about as smart as the average redditor...which is as upsetting as it is plausible. Tough call.

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When you are newly hitched and learning how to combine your essential legal and financial information as well as your accounts, it can be confusing.

Many people live together before getting married and have begun the process of combining accounts and sharing responsibilities. However, some people wait to do this only after marriage, and others wait until they're married to live together. Whichever path you've chosen, it's still crucial to know a few tips to manage money together as newlyweds to determine where you should begin and how you can remain on the same page.

Discussing Money Motivations

As we begin to share money with our significant other, we soon find out what one person may rank as a priority regarding money and the other may not. As such, sitting down and discussing money motivations is important. Two people who cannot agree on how to handle money may cause serious issues. This should include:

  • How to deal with money following payday. Is a percentage put into savings? Is that the day to splurge on dinner, drinks, and more?
  • The frequency and size of payments made to debts. Some people like to pay minimums, whereas others pay in full or make double payments.
  • What do you each consider money well spent? Is it a new 70" 4K television? Is it an investment? Is it paying as much debt off as possible?
  • How do you go about consulting each other before making purchases over a certain amount?

Establishing Financial Goals

After you evaluate the motivations behind your money and how it should be spent, you'll need to spend time together hashing out financial goals. As newlyweds, there are certain things on your list that you're going to want to save for. How do you go about that? How much of each paycheck will you dedicate to a particular fund?

Some things in the future worth making a financial plan for include savings and paying down debts. This is the time to be honest about your current financial standing. If you're looking to buy a home, you'll want to assemble a first-time homeowner financial checklist to begin to develop topics of conversation. Some of the things to consider setting goals for are:

  • Student loans
  • Car loans
  • Future children
  • A house
  • Medical bills
  • Delinquencies on credit reports
  • Vacation and rainy-day funds
  • Emergency funds

Budgeting Together

The more honest and open you can be with each other about the money you have and now the debts you share, the better. Implementing plans for the best ways to have the things that you both desire while still taking care of existing demands is important. These can be uncomfortable things to talk about; however, these conversations are necessary.

Following these tips to manage money together as newlyweds will allow you to have a starting point for conversations that can be tough to start. The sooner you and your partner get on the same page with finances and the responsibilities that come with them, the easier the transition will be and the sooner you'll find success.

It's the dream: money you can count on to keep rolling in, even while you sleep.

Passive income isn't entirely passive, of course. You'll put in work up-front to get the profits rolling, so don't relax in your recliner just yet. But with so many potential sources of passive income available to you, picking one or several will mean that the day you can finally kick back will draw steadily closer.

Rental Properties

Real estate is a tried-and-true wealth builder for a simple reason: people will always need somewhere to live. Research the market in a growing community until you know a good deal when you see it. You can maximize rent by fixing up a deteriorating property or upgrading a mediocre one. The key is to hire a property manager to do all the day-to-day landlord duties for you—and you'll need a good one. Smart investors put their profits in another property and repeat the process until they have a diverse portfolio.

A YouTube Channel

You can start a blog if you're more comfortable hiding behind a computer, but consumers are more likely to prefer video content. Post a series of “how-to" videos to answer questions about whatever you're an expert in.

You can put up any content you want, but if you don't want to commit to regularly updating it, focus on “evergreen" topics that will draw clicks for eternity. Ads will create your income, especially if your channel grows in popularity. Better yet, sign up for affiliate marketing. If you recommend a product and provide a link to buy it, you'll get a small percentage of those transactions.

Auto Advertising

If you don't mind vinyl-wrapping your car with an ad for a company, you can get cash just driving around and running your errands. Make sure you contact a reputable company that doesn't ask for any money from you; if they're the real deal, they'll evaluate your car, your driving habits, your area, and more. Bonus: the brighter the ad, the easier it'll be to find your vehicle in the parking lot.

Digital Products

What's something that people will pay for but doesn't require shipping on your part? Finding that item is what can supplement your income indefinitely. Write an e-book, charge for your cross-stitching patterns, design prints that people can digitally download, invent an app, record a “masterclass," or whatever else you want. Every time someone new discovers it, the cash register rings. With a little more effort, this is a potential source of passive income for you that can continue to grow. Once you build up a customer base, they might want more products. The good part is that it's up to you whether you wish to give it to them.

Airbnb is a great option while traveling, but you should protect yourself from damage charges from unscrupulous hosts.

Airbnb offers an affordable option for people looking to be more comfortable as they travel.

However, there are downsides to staying in a host's home rather than a hotel. Whereas hotels are designed for constant streams of visitors and often have furniture built to last, at an Airbnb, you may be staying on old or cheap furniture that a host is using in order to maximize their profits.

And while most reputable hotels will have regular room inspections from staff to check for any wear and tear, Airbnb damage disputes are oftentimes he said, she said situations. If you are in an Airbnb and something breaks, there are a few steps you should take in order to ensure that you are not on the hook for damages out of your control.

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