The value of Bitcoin has soared record high after Tesla invested 41.5 billion recently. The cryptocurrency has increased over 10% after Tesla’s announcement. The founder of the car company Elon Musk has declared that the company will be accepting Bitcoin as a form of payment for all of its products very soon.
After the news of the investment hit the market Bitcoin increased by 13% to over $43,000, in Monday trading.
As the electric car-maker giant will soon be accepting Bitcoin as payment, one can afford its lowest-priced electric vehicle in the US with one Bitcoin. The cars at Tesla start at less than $40,000.
Only 10 days ago, the value of the global electronic currency boosted with Tesla chief executive Elon Musk’s tweet with a tag ‘#bitcoin’.
Though he deleted the tag after a few days from his Twitter, he mentioned Bitcoin and other cryptocurrencies such as dogecoin in his social media. They became a sensation to his millions of followers online.
Only a week ago Elon Musk predicted that Bitcoin was ‘on the verge’ of being used and approved by investors worldwide.
Regarding the move, Tesla revealed that the decision was taken as per the board investment policy to diversify and increase its returns on cash.
Tesla said that the company has invested $1.5 billion in total in Bitcoin and are open to ‘acquire and hold digital assets from time to time or long-term’.
Tesla revealed the news after it recently reported about its annual profit after years of losses. This is the first time in years the company has been able to gain profit from their products.
According to market analysts, the recent move by the biggest electronic car maker can make a huge impact on Bitcoin. Only a year ago, the company overtook its rivals becoming the largest by value with its share price skyrocketing in no time.
The vice president of market intelligence of cryptocurrency research firm Messari, Eric Turner said that the world will be noticing many companies trying to invest in Bitcoin following the path that Tesla has paved.
He explained that one of the biggest companies in the entire world, Tesla has now invested in Bitcoin. Hence, all the investors of the company are also exposed to the cryptocurrency to some extent.
After experiencing several low points in the last decades, Bitcoin has finally been gaining at the speed of light since the beginning of this year with top companies now investing in it.
Even after the biggest financial columns of the world investing in it, the central banks like the Bank of England still express their doubt about the cryptocurrency. Experts suggest that it needs more store value in order to get accepted by everyone.
Glenda Bozeman – Business and Services
Glenda Bozeman writes Business articles for industries that want to see their Google search rankings surge. Her articles have appeared in a number of sites. Her articles focus on enlightening with informative Services sector needs. She holds the degree of Masters in Business and Marketing. Before she started writing, she experimented with various professions: computer programming, assistant marker, and others. But her favorite job is writing that she is now doing full-time.