Tesla Invests $1.5 Billion in Bitcoin
Tesla Invests $1.5 Billion in Bitcoin and Will Accept Cryptocurrency for Purchases
Despite the probability of the market been volatile as said by skeptics, yet the high surge in the value of Bitcoin price to $44,795.20 is second to none. Just 12 years old, it has seen a meteoric rise since March 2020, when it stood at $5,000. Recently, Bitcoin value has risen by about 50 percent this year, despite warnings by regulators over its vulnerability. Below are the highlights:
- Tesla’s move institutionalizes bitcoin as an accepted means of value
- Paypal permits consumers to conduct transactions in cryptocurrency
- Tesla will also begin accepting Bitcoin as a form of payment
Tesla’s $1.5-billion investment in Bitcoin is no doubt one of the reasons behind the surge in the market value of bitcoin. The carmaker announced its $1.5-billion investment in digital money and plans to accept the cryptocurrency from customers buying its electric vehicles. Tesla described its bitcoin purchase as a means to boost company liquidity as stated below;
”In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash,” Tesla said in announcing the $1.5 billion Bitcoin purchase.
As a result “we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds, and other assets as specified in the future.”
Tesla will also “begin accepting bitcoin as a form of payment for our products in the near future,” the company added.
Tesla’s move further to institutionalizes the coin as an accepted means of value in American and global business.
The announcement comes on the high-level display of acceptance of the coin by the world’s richest man, CEO of Tesla Elon Musk on social media and this ever since has marked the latest upgrade of Bitcoin.
Elon Musk, being an iconic expert at disrupting corporate norms as well as economic structures, last week briefly changed his Twitter bio to simply read #bitcoin. He also recently promoted Dogecoin, another digital currency that was launched recently on his social media account, and ever since then, dogecoin has suddenly increased in value.
In October 2020, Paypal announced it would permit consumers to conduct transactions in cryptocurrency, while payments company Square said it would invest $50 million in Bitcoin.
Author : Isaacoed buchi jamie