Do you live in America and you fancy purchasing a Tesla? If so, you can now buy the car utilizing bitcoin, the world’s number one digital currency by market cap. The asset is accepted as a form of payment thanks to the efforts of Elon Musk, who has become a serious bitcoin bull over the past few months.
Elon Musk Permits Bitcoin Payments for Tesla Cars
The move is primarily an effort for the company to get its fingers on a lot more crypto. Last February, the electric vehicle manufacturer made headlines when Elon Musk, the CEO of the firm, decided to spend upwards of $1.5 billion on BTC, making it one of the largest institutional purchases of crypto in the history of the space. However, it doesn’t look like things are stopping there.
Musk is now saying that he wants to garner even more crypto, and he’s hoping to do this by allowing users to purchase his vehicles with the planet’s primary digital currency. He has said that any bitcoin utilized to purchase a car will not be converted to cash, and instead will be stored in the company’s financial reserves.
Not long after the $1.5 billion purchase, Musk had made it clear to fans everywhere that his company was planning to initiate this at some point in the future, though nobody could have predicted it would be so soon. The currency – which had previously been trading for about $54,000 per unit – has reacted positively to the news and has since added another $1,000 onto its dipping price.
As it stands, only Tesla customers in the United States are eligible to purchase cars with BTC in the immediate future, though Musk has stated that customers outside the U.S. should be able to initiate buys with BTC later in the year. He has also stated that Tesla only uses “internal and open-source” software for all its crypto transactions and that it operates its own bitcoin nodes.
A Lot of People Are Quite Happy
Many analysts and industry heads are excited about the news. Simon Peters of e-Toro fame has stated that this is likely to push the currency further towards legitimacy and mainstream territory. He says:
Tesla’s decision to both accept payment for its cars in bitcoin and hold that bitcoin on its balance sheet rather than convert it to dollars will likely build more momentum for the crypto asset. 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 sheets, 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.
Economists like Marion Laboure of Harvard are now confident that bitcoin is likely to hit a turning point within the next two to three years.