Telsa CEO, Elon Musk has confirmed that the electric car company will now accept Bitcoin as a form of payment – news that has caused the price of Bitcoin to rise 5%.
In a tweet, Musk says “You can now buy a Tesla with Bitcoin” and then goes on to reveal that Tesla is only using internal and open-source software and operates Bitcoin nodes directly. And that Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency.
You can now buy a Tesla with Bitcoin
— Elon Musk (@elonmusk) March 24, 2021
According to Simon Peters, crypto analyst at eToro, the decision for Tesla to accept Bitcoin as a form of payment “will likely build more momentum for the cryptoasset“.
“Tesla and other companies are showing that crypto is here to stay, and its mainstream adoption is only going to increase. In terms of market dynamics, as more companies hold bitcoin on their balance sheet, so the finite supply is depleted even more, and this is likely to cause a supply-side squeeze and boost prices over the longer-term.”
Bitcoin reached a new high of $47,000 after Tesla invested $1.5 billion into the cryptocurrency. The electric car manufacturer revealed that “in January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. As part of the policy, we may invest a portion of such cash in certain specified alternative reserve assets.”
“Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt.”
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