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Tesla Invests $1.5 Billion In Bitcoin And Plans To Accept It As Payment For Cars
Musk power to move the market is both admirable and scary.
Elon Musk has invested in $1.5 billion, pushing bitcoin’s price upward by more than $10,000. As of the latest update, Bitcoin was trading at $46,447. Tesla says that ‘in the near future,’ the company will be accepting cryptocurrency as a form of payment when customers purchase from them.
A record-high number was reached after Elon Musk invested $1.5 billion to the cryptocurrency.
Bitcoin is trading at $47,975.
Tesla stock has also gone up by 1.8% by the next morning.
Musk, who openly shows his support towards cryptocurrency, hinted at his actions a few days ago when he added ‘#bitcoin’ to his Twitter profile. Afterward, Bitcoin reacted to Musk’s investment, confirming the $1.5 billion aggregated amount of investment Tesla has put in the cryptocurrency.
Experts, however, are commenting on Musk’s power to move market.
Aside from Bitcoin, Musk has also given dogecoin, a meme-based cryptocurrency, a shoutout. Over the weekend, dogecoin was seeing record-high exchange rates as well. Several tweets were sent out, including an instructional video about the dogecoin that helps promote the cryptocurrency.
Ever heard of the Dogecoin?
Thanks to Musk, dogecoin is seeing a significant movement.
Musk previously said that many investors are close to giving cryptocurrency more attention than anything, suggesting that it can be used as a means to do major transactions. However, Market analyst Neil Wilson shows concerns, “He’s now putting his money (shareholders’) where his mouth is.”
“But given his recent comments – and adding #Bitcoin to his Twitter bio on January 29th – it also raises a real question about possible market manipulation.”
Tesla new 2021 investment policy defines new ways the company can invest long-term in.
To maximize its return on cash, the company has been diversifying its investment into ‘digital assets, gold bullion, gold exchange-traded funds, and other assets.’ Along with this, the company has also opened up about their new payment option to ‘begin accepting bitcoin as a form of payment for our products in the near future.’
This act means that shareholders and people who own any S&P 500 fund are exposed to Bitcoin now.
When Musk asked if it would be possible to rely on Bitcoin for ‘large transactions’ conversion. Microstrategy’s CEO Michael Saylor encouraged Elon Musk to be the first that initiate it. Paypal that Elon Musk co-founded, announced in October that its platform would allow Bitcoin exchange and hold.
