By Eurasia Business News – March 24, 2021
View on a Tesla fast-charging station “Supercharger” with two Tesla Model 3 – Photo credit : Eurasia Business News, 2020.
The billionaire Elon Musk announced that it is now possible to buy a Tesla car with Bitcoin :
“You can now buy a Tesla with Bitcoin”
The option is currently only available to the company’s US customers and will be introduced in other countries later this year.
The tech tycoon added on Twitter :
“Tesla is using only internal & open source software & operates Bitcoin nodes directly. Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency.”
Following this announcement, the Bitcoin rate began to rise sharply. Over the past hour, the cryptocurrency has risen in price by $ 1.7 thousand, to the current level of USD 55.4 thousand. Bitcoin was priced above USD 52 thousand at 22:29 UTC time on March 24.
Read also : Ethereum jumps by 9% amid Tesla’s purchase of bitcoins for $ 1.5 billion
Tesla announced its intention to add the ability to pay with cryptocurrency to the US Securities and Exchange Commission (SEC) in early February. The company announced this when it disclosed its $ 1.5 billion investment in Bitcoin. The US cryptocurrency exchange platform Coinbase helped the automaker buy the cryptocurrency.
Elon Musk stated that Tesla’s actions do not directly reflect his views, since he considers Bitcoin “simply a less stupid form of liquidity than cash savings.” The founder of Tesla and SpaceX admitted that investing in a $ 1.5 billion cryptocurrency is recklessness for a company from the S&P 500.
Earlier Tesla reported to the US Securities and Exchange Commission (SEC) that it had invested $ 1.5 billion in Bitcoin in January.
Read also : Bitcoin jumped by 14% and rose above $ 44,000 for first time
Bitcoin is likely to continue to rise in value as it is used to hedge against inflation and the consequences of pandemics. This bitcoin rush would be favoured in particular by the status of the cryptocurrency against the depreciation of “classic” currencies, by the interest aroused among an increasingly wide range of institutional investors and the growth of the blockchain industry.
The US Federal Reserve Chairman Jerome Powell called Bitcoin a substitute for gold in his speech at an event hosted by the Bank for International Settlements (BIS) on March 22.
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