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- TESLA begins its plan to invest $1.5 billion in leading cryptocurrency, Bitcoin
- Move marks a big push for crypto as several companies expected to follow
- Bitcoin shatters stock records as it reaches all-time high levels following the announcement.
Revolutionary electric-car manufacturer, Tesla, stoked enthusiasm among crypto fans as Elon Musk announced plans to invest $1.5 billion in Bitcoin. Tesla’s CEO, Elon Musk, known for his uncanny investment choices, is credited with this recent decision. This may send ripples through the market and may spell good-news for cryptocurrencies in the days to come.
Reason behind Tesla’s investment
There may be several reasons behind this move. Certain reports speculate that this sudden investment choice is to shift focus away from Tesla’s Chinese troubles. Consumers are questioning Tesla products about its quality. However, this move may not be unprecedented at all, as Elon Musk had been mentioning Bitcoin in several instances for quite some time now. Musk may also have foreseen the potential of cryptocurrency to revolutionize the payments sector, thus leading to Tesla announcing that it will accept payments for Tesla products in Bitcoin in the foreseeable future.
Bitcoin’s stock market rally
Shortly after the announcement, the stock price of Bitcoin rose 20% to a peak of $48,216.09, an all-time high. Rival cryptocurrencies such as Ethereum and DogeCoin also posted strong gains. This was backed by the wave of enthusiasm surrounding Tesla’s announcement. Given Bitcoin’s history of volatility, the current trend is pleasantly surprising, which is good news for all the Bitcoin owners..
Long-term impact
One can buy a Tesla Model Y SUV for 1 Bitcoin. Tesla’s decision is initially for its suppliers and customers who are enthusiastic to invest in Bitcoin. With the rise of Bitcoin, rival cryptocurrencies will also gain value and be in greater demand. Governments all over the world will be forced to review their positions on cryptocurrency as legal tender. They will be required to regulate its use. Gradually, all sectors of the market will be forced to adapt to the normalized use of cryptocurrency. However, for all this to occur, the issue with Bitcoin’s liquidity has to be tackled first. The flow of bitcoin has to be maintained in such a way that it meets the demand, which is bound to increase in the coming months. Moreover, several other companies will be enticed to follow in Tesla’s footsteps. They are expected to invest in either Bitcoin or any other cryptocurrency.
One will have to wait and watch if Bitcoin will finally shed its volatility leading to people thinking that Bitcoin is a safe investment choice.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
