Elon Musk’s recent tweet
Tesla announced that it would begin receiving Bitcoin payments after investing $1.5 billion in the cryptocurrency in February. That being said, it was unclear how they will achieve it.
You can also use Bitcoin to purchase a brand-new electric car from Tesla in the United States. Elon Musk, Tesla’s co-founder, revealed on Twitter that the Bitcoin payment alternative is now available. Also, the company would not exchange Bitcoin for fiat currency.
Musk announced on Twitter shortly after 7 a.m. UK time on Wednesday, “You could now acquire a Tesla with Cryptocurrency.” Immediately after the tweet, Bitcoin was up 3% against the dollar, to $55,444.21 (BTC-USD).
The reason behind Tesla’s bitcoin investments
Tesla disclosed in its SEC filing that it had spent $1.5 billion in Bitcoin, money that it did not need right away. The electric vehicle manufacturer said in its filing that its investment in Bitcoin was made to “maximize returns.”
Tesla employs both internal and open-source applications, according to Musk. Furthermore, the firm is actively running Bitcoin nodes. He also mentioned that Tesla would not turn the Bitcoin it gets into fiat currency. It is noteworthy given that they have invested entirely from surplus cash reserves.
Musk’s long-term interest in cryptocurrency
Musk has been getting attention with his growing interest in cryptocurrencies for a few months already.
Elon Musk’s statement about payments in the bitcoin company is unsurprising. He has been outspoken about his belief in cryptocurrencies such as bitcoin. He preferred the meme-based Dogecoin over bitcoin at first, converted to the blockchain in January.
Since then, he has made some amazing forecasts and assertions that have roiled the cryptocurrency world and the bitcoin sector. He recently proclaimed bitcoin to be the world’s future currency and confirmed that he would never hesitate to be compensated in bitcoin in the end.
The two-way opinion of Musk on bitcoin
Musk, who promotes cryptocurrencies on Twitter, recently chastised traditional money. He claimes that it “has bad real interest, only a fool does not search elsewhere.”
He also said that the disparity between cryptocurrencies and cash made it “ambitious enough” for the S&P 500 firm to retain it.
How would it affect the cryptocurrency market?
If enough Tesla consumers opt to Bitcoin as a payment form, it could be a landmark moment for cryptocurrency as a viable payment choice.
According to some Twitter users, Bitcoin has been introduced as a payment option alongside card and Apple Pay on March 24. We have been unable to locate the alternative on Tesla’s website at this time.
How this payment method works, and what Mus have to say about this?
Elon stated, “Tesla uses only internal and open source applications and runs bitcoin nodes explicitly.” “Bitcoins charged to Tesla will remain bitcoins and will not be transformed to fiat currency.”
It is a significant commitment because it ensures Tesla will be paid a decent sum at the outset. These fees, though, would be meaningless if the economy falls or even crashes. However, because Tesla has already purchased bitcoin, these will most likely be seen as additional bitcoin deposits.
What other companies have to say about Bitcoin as a payment option?
Tesla wasn’t the first business to invest any of its cash in cryptocurrencies. MicroStrategy, a US-based business analytics firm, bought $250 million worth of Bitcoin earlier in 2020 and revealed intentions to raise $400 million more to purchase more of the cryptocurrency.
Square, a New York-based financial technology firm led by Twitter CEO Jack Dorsey, has entered the party by purchasing $50 million in Bitcoin.
Following Tesla’s Bitcoin acquisition, several firms, including Uber and Twitter, expressed their opinions on the digital currency.
Tesla’s founder and CEO Elon Musk would now be known as the Technoking of Tesla, according to a legal report to the US Securities and Exchange Commission earlier this month.