Tesla Has Invested $1.25 Billion In Bitcoin And Will Accept Password Visa Payments
2021-02-08 | by CusiGO
Tesla, the US car company, announced on Monday that it had invested $1.5 billion (about 1.25 billion euros) in bitcoin. The company, which is managed by Elon Musk, the world’s richest man, has accumulated a controversial asset and has been debating its true value for years. In addition, according to the text submitted to the US regulator sec, Tesla plans to allow customers to buy their vehicles “in the near future” by paying for bitcoin.
The news immediately reverberated in the market. Bitcoin prices began to rise vertically, reaching an all-time high of more than $44000 after rising more than 14%.
Tesla reported last month that it decided to update its investment policy to make it more diversified and maximize the cash return needed for its short-term business. Under this strategy, they are considering investing in bullion, cryptocurrency and other alternative reserve assets.
According to Forbes, Elon Musk’s wealth is estimated at US $182.9 billion (about 152 billion euros), which is as high as his ability to disrupt the market from the sofa. Ten days ago, when he replaced the biographical information on twitter with the word “bitcoin”, he already hinted at his love for bitcoin, This led to an immediate rise in their prices. His twitter support for dogecoin, another little cipher, has also boosted its value.
Now, however, he has changed from words to deeds. The announcement by the electric car maker helps consolidate bitcoin’s position as a haven of value, which has been rising in recent months as institutional investors enter and payment platforms such as PayPal are willing to accept its use. Regulators don’t like the growing prestige: the European Central Bank last month called for global regulation of bitcoin, which is a “highly speculative” asset.
Elon Musk’s signature does not ignore risk. In a statement to the SEC, he issued a long-standing warning that his decision was risky. He recalled that the price of cryptocurrency fluctuates greatly, and a breakthrough has just appeared recently. “It is unpredictable for investors, consumers and enterprises to adopt cryptocurrency for a long time.”. In addition, they explained that because bitcoin lacks physical support and relies on technology, it faces cyber attacks and outdated technology, and its future regulation may also be affected. “If we have digital assets whose value falls relative to our purchase price, our financial position could be compromised,” they admit
On the contrary, if the value of bitcoin rises, the company with a market value of more than $800 billion may benefit from the investment boom in major cryptocurrencies, which have been protected from the pandemic and have appreciated by more than 250% last year. Investors are not disappointed with Elon Musk’s new bet: Tesla’s shares rose more than 2% in the first round of trading on the NASDAQ index. Meanwhile, on twitter, more than 46 million followers are waiting for signs of Musk’s next move, He seems to see it as a game, with memes and humorous images of his information about multibillion dollar investment decisions.