It has only been about ten weeks since Tesla – the electric car company developed by South African entrepreneur Elon Musk – first purchased more than $1.5 billion in BTC units, and already the purchase appears to be making a serious dent in the country’s finances. Thus far, the company has managed to rake in more than $1 billion in profit thanks to its newfound love of the world’s number one digital currency by market cap.
Tesla Is Raking in the Dough
Last February, the world was shocked when Tesla – a leading institutional firms – announced that it had purchased such a heavy amount of BTC. Elon Musk had claimed to like bitcoin in the past, though he seemed to jump back and forth and rarely made any serious moves in the crypto space, often being more friendly to Dogecoin than he was towards BTC. He changed his Twitter bio to #bitcoin, only to remove this just a few days later and replace it.
Musk had provided “loving words” towards BTC and crypto before, though nothing had ever been set in stone. Now, however, things appear to have really changed. Tesla has purchased quite a bit of bitcoin and is raking in the rewards.
In addition, Musk made it clear to investors and analysts alike that the company was eager to get its hands on more. Thus, customers could potentially utilize bitcoin in the future to purchase vehicles and other products through the company, just as though it were a fiat currency or a credit card. Tesla is now one of the companies that appears to be making the initial goals of bitcoin a reality, and the asset has moved up in price.
One of the big problems that comes with bitcoin is its volatility. Its vulnerability to price swings has caused many retailers and companies to get in the way of the asset’s dream to potentially serve as a method of payment. While bitcoin was designed to replace fiat currencies and credit cards and be used to buy goods and services, many retailers have said “no” and reverted to old methods to garner profit.
More Institutions Are Jumping In
However, Tesla is one of the few major institutions to now say that bitcoin can be used to purchase items. In addition, the company has announced that any bitcoin used to purchase cars in the future will not be converted into fiat. The firm will simply hold onto whatever digital units it garners and hold them in a separate account.
For the most part, these last eight months have seen several institutions suddenly begin to show real respect and love towards the world’s primary form of digital currency. Software firm MicroStrategy, for example, has outdone Tesla’s BTC buy and purchased more than $2 billion worth of the cryptocurrency at the time of writing.