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Tesla, the American electric vehicle and clean energy company co-founded by Elon Musk, made an announcement on Monday in a filing with the Securities and Exchange Commission, that they have bought $1.5 billion worth of bitcoin and are now accepting bitcoin as a payment option. This makes Tesla the first major automaker to accept bitcoin.
- Tesla announces Bitcoin investment and the company now allows bitcoin payment.
- The price of bitcoin skyrocketed to about $44,200, just hours after the announcement.
- “But when the richest man in the world does it everyone has to take a second look there’s no question about it.” Robert Pavlik- Senior Portfolio Manager.
For some this move by Tesla, comes as no surprise, since Elon Musk has always expressed positive commentary when asked about the legitimacy of Bitcoin. Some would even say that he endorsed Bitcoin in its early stages. In recent weeks, Musk has been very vocal about cryptocurrency on Twitter, adding hashtags such as #bitcoin to his bio and stating that he thinks that “bitcoin is a good thing, and I am a supporter of bitcoin”, on social media.
Some financial analysts predict that Tesla’s investment in bitcoin could be a gamechanger for the cryptocurrency market.
Of course, these endorsements added to the increasing interest in cryptocurrency investment, so much so that the price of bitcoin skyrocketed to about $44,200, just hours after the announcement. Tesla also benefited as its shares went up by more than 2% on Monday morning. However, Tesla did warn its clients that cryptocurrency, particularly Bitcoin is volatile.
Tesla, may be one of the first heavyweights to embrace bitcoin, but it certainly won’t be the last. Bitcoin interest is at an all time high, with companies like PayPal, Fidelity Investments and Square now allowing their clients to be involved in the digital asset.
Further Predictions as Tesla Invests $1.5 Billion in Bitcoin:
“I think we will see an acceleration of companies looking to allocate to Bitcoin now that Tesla has made the first move,”
“One of the largest companies in the world now owns Bitcoin and by extension, every investor that owns Tesla, or even just an S&P 500 fund, has exposure to it as well.”
Eric Turner- VP of market intelligence at Messari.
Bitcoin has the potential to open up the world and put all (at least virtual) workers on the same platform. Where one Bitcoin is always one Bitcoin, and if people are paid in Bitcoin, they know what that means…”
Justin Sun, Founder of and CEO of TRON and CEO of BitTorrent and Peiwo