Bitcoin soared nearly 20% in the past week, and it’s no secret what happened. Tesla – the world’s premier electric vehicle producer and 124th Fortune 500 company jumped in with both feet.
With a 1.5$ Billion Bitcoin purchase, it was a kick in the pants Bitcoin was likely to receive sooner or later. Bitcoin has been turning the heads of many Fortune 500 CEOs, not just Mr. Elon Musk’s. PayPal, Amazon, and many others have said Bitcoin is in their future, not only as an asset owned by the company. They are speaking of plans to use it as a method of payment.
With a 1.5$ Billion Bitcoin purchase, it was a kick in the pants Bitcoin was likely to receive sooner or later.
Tesla said what this writer – and many other Bitcoin enthusiasts – say: they used a little extra cash that wasn’t in use to maximize returns. Simply put: they had some extra money not being used, and they invested in Bitcoin by way of growing it.
Elon Musk seems to have been preoccupied with cryptocurrency recently: he added “#bitcoin” to his Twitter bio days before announcing the purchase. He removed it a few days later but mentioned various cryptocurrencies in conversation multiple times since. Another cryptocurrency whose value he spiked by endorsing is Dogecoin. It jumped 50% thanks to Musk supporting it.
And, more importantly:
Will this massive purchase lead to any notable changes in conduct or policy in the Tesla corporation? Tesla says yes.
According to the Tesla stock market filing, it is likely to acquire more digital assets – cryptocurrencies – in the future. Tesla also announced it would be accepting Bitcoin as payment in the near future.
Good or bad?
Will this purchase contribute to Tesla’s growth and the constant rise of Bitcoin? That’s a question for the ages. Opinions on the matter a many and varied. Some analysts say it’s only the start of another meteoric rise as more Fortune 500 companies and investors jump in. In general, it appears Tesla’s endorsement of this and other cryptocurrencies is nothing short of a guarantee of success.
Other analysts warn about this cryptocurrency’s volatility and the severe crash that could often follow such a big jump. It is a massive risk which worries some of the more conservative investors.
Tesla also announced it would be accepting Bitcoin as payment in the near future.
Tesla isn’t alone – or first – in endorsing Bitcoin among large companies. Several major financial establishments have shown support for this cryptocurrency this past year. Blackrock – the world’s biggest money manager – recently changed some of its investment policies to allow Bitcoin investment.
Despite all this endorsement, some institutions remain timid, such as many central banks. For example, Bank of England governor expressed concerns about using Bitcoin as a payment mode, citing its lack of intrinsic value and high volatility as the cause.
Do you think Tesla’s step will lead to growth, or loss? Do you believe in Elon Musk’s decision? If you do, you might want to invest in Bitcoin before it continues to soar.
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