Tesla invests $1.5Bn in Bitcoin, to allow payment in cryptocurrency

Tesla invests $1.5Bn in Bitcoin, to allow payment in cryptocurrency

U.S. electric automaker, Tesla has recently made headlines after the firm announced its decision to invest USD 1.5 billion in Bitcoin and hinted its intent to accept cryptocurrency as a form of payment. Following this news, Bitcoin prices recorded an all-time high, crossing USD 44,000 for the first time.

As per report, Elon Musk, CEO of Tesla, made the bet on Bitcoin soon after updating its investment policy in January 2021 that allowed the company to buy digital assets.

As per a statement by the company, the firm expects to begin accepting cryptocurrency as a payment mode to buy cars subject to applicable laws and initially on a limited basis.

Notably, the company’s trust in Bitcoin extends increased legitimacy to the electronic currencies, which have become a mainstream asset in the past few years despite certain disbelief. Moreover, the move also fits the eccentric image of Elon Musk, who introduced advanced battery-led vehicles and disrupted the equities market through the stock’s ascension to the blue-chip S&P 500 Index in the year 2020.

It is worth mentioning that other notable organizations have made alike investments in Bitcoin. For instance, MicroStrategy Inc. has spent over USD 1.1 billion on the token. In October 2020, Square Inc. led by crypto expert Jack Dorsey declared that it converted nearly USD 50 million of its total assets into tokens in the second quarter of 2020.

Seemingly, Bitcoin has witnessed big swings in the last couple of years which has raised uncertainty regarding its outlook. Investments like the ones made by Tesla will ensure a mode durable rally.

Citing reliable sources, the predictions regarding Bitcoin’s long-term price range from USD 40,000 and more to zero. This token has been designed to ensure a fixed supply of 21 million coins which is supported by a digital ledger that is distributed across various computer networks.

Reportedly, Tesla ended 2020 with over USD 19 billion in cash on hand after raising USD 12 billion in stock sales, taking benefit of a nearly 750% increase in its share price.

Source Credit: https://www.ndtv.com/world-news/bitcoin-surges-to-all-time-high-as-elon-musks-tesla-invests-1-5-billion-2365959