Electric car maker Tesla said Monday that it has invested $1.5 billion in bitcoin and has begun accepting the digital currency as a payment method for its Model 3 electric car. CEO Elon Musk said on March 24 that Tesla had officially begun accepting bitcoin as a means of payment for the vehicle. The announcement pushed bitcoin to an all-time high of $48,000 on Monday, meaning it only takes about 0.82 units of cryptocurrency to buy a ride on the Tesla Model 3. Tesla’s bid for Bitcoin has given Bitcoin an extra boost, but some analysts say the bubble could burst. Even with Tesla’s support, it could take some time for those making money from investing in bitcoin to buy a car. Even with Trump’s approval of Bitcoin as a payment method for the Model 3, they may still need some time to use Bitcoin to buy the car, according to a recent Wall Street Journal report.
Even with Tesla’s support, it could take some time for those who have invested money in Bitcoins to use it to buy the cars. Even with Tesla’s support, it could take some time for those who make money investing in Bitcoin to buy the cars. It is also unclear how much of the bitcoin gains will translate into better returns for the company’s loyal shareholders. Even if Trump approves Bitcoin as a payment method for a Model 3, they could still need some time to use Bitcoin to buy the car, according to a recent Wall Street Journal report. While some believe Tesla’s announcement will herald a broader adoption of the cryptocurrency by the general public, it seems to be a niche option, as cryptocurrencies are only a small part of Tesla’s overall business model. Instead, this is an opportunity for the company to thrive, which Tesla seized earlier this year.
In response, Saylor said Musk should “do his shareholders a $100 billion favor” and convert bitcoin into dollars. Tesla boss Elon Musk has been increasingly enthusiastic about several such currencies on his Twitter account, potentially sparking controversy. Over the weekend, he also released a series of cryptocurrencies – related memes, including dogecoin – and appeared to be buying more to drive up his price. Tesla did not specify when it will introduce the bitcoin payment option or in which countries buyers can pay for the car using the cryptocurrency. Tesla also said it expects to accept bitcoin as a means of payment for its products in the near future, without specifying how the cryptobased transaction will work. Sedunov said Tesla is in the process of giving bitcoin more legitimacy in the mainstream, not to mention ease of use.
Tesla’s bitcoin support is likely to boost confidence in the cryptocurrency, and other companies are likely to follow. Analyst Dan Ives called Tesla’s move to shore up the cryptocurrency a “game-changer” for retailers. Tesla accepts bitcoin payments will be the company’s future – to bring the image forward and attract at least a few self-proclaimed visionaries – who will be willing to pay with the currency of the future for the cars of the future. Accepting Bitcoin directly for purchase would be an important milestone for an upstart currency.
If Musk is ever predictably unpredictable, there is no reason to be surprised by his public enthusiasm for bitcoin, which makes it attractive to investors and investors alike. In recent weeks, Musk has used his sizable following to talk about other investments, and he became the world’s richest man last year when his fortune skyrocketed. Ramsey added that while he is confident many people will take up Tesla’s offer to exchange their bitcoin for the car for practical reasons, it would not be a bad marketing move.
The cryptocurrency’s stock jumped as much as 20 percent last month when Musk changed his Twitter bio to “Bitcoin,” and the price of Bitcoin hit an all-time high after Tesla bought Bitcoin for $1.5 billion and announced it would accept Bitcoin as a form of payment in the future. Bitcoin has gained 303% since Musk’s announcement, compared with a 743% rise in Tesla’s stock. The stock has seen its own surge in popularity, which appears to have driven up the price of bitcoin since the purchase was announced. In the filing, Tesla warned that the use of bitcoin poses risks to the company’s financial results because cryptocurrencies are highly volatile as in the past and could and should not continue to be used.
It is worth noting that Tesla has not yet sold any bitcoin, according to documents filed with the Securities and Exchange Commission (SEC). Given Musk’s recent comments about the possible use of Bitcoin as a means of payment, it can be said that the SEC will be looking into the matter. We cannot resist the urge to speculate about Tesla’s future and its relationship with bitcoin and other cryptocurrencies in general.
