Tesla and Bitcoin Have Taken The World by Storm

Introduction:

Bitcoin prices touched a record high this year, in early February after the tech giant, and CEO of Tesla, Elon Musk, announced a whopping $1.5 billion investment in the digital currency.

The company also said that it would soon start accepting virtual currency as a mode of payment for its electrical cars. This huge investment in the largest cryptocurrency by a mainstream company like Tesla has taken the world by storm.

Listed below are few reasons why this move by a tech giant, like Tesla, has got the world thinking:-

Tesla's billion-dollar investment in bitcoin indicates the inception of a new era involving the merger of the mainstream business and the cryptocurrency eco-space. Digital tokens will now not only have store value but will also be utilized as a medium of exchange.

Investment from a company like Tesla plays a significant role in legitimising cryptocurrencies. It also exposes cryptocurrency to an all-new world of institutional and retail investors.

Elon Musk's investment in bitcoin also exposes us to the perils of thinking dollars or any other form of fiat currency having any kind of long-term store value. Holding bitcoin is now being seen as a critical part of having a well-diversified portfolio.

This investment by Tesla in BTC also solidifies the fact that cryptos are not only tokens with store value but an asset with infinite untapped potential. For example, this opens up avenues for B2B companies to conduct business with Bitcoins.

Investment in cryptos also brings forward a new asset class to the global financial market. It is also being seen as the very start of industry validation to cryptos much like dollars. However, financial and tech experts are also worried about the safeguarding and custody issues that will arise with these volatile currencies.

Some investors also see Tesla's big move in a negative light. This huge investment has got them thinking if they should carry out the Tesla business anymore. This perception has developed mostly because of bitcoin's volatile, decentralised and deregulatory character. However, experts also picture an increased investment in Tesla in the coming days, due to Bitcoins untapped potential.

Being a tech giant, Tesla is known to have detailed financial track records. Experts suspect this could also mean some form of future regulation and keeping records in the bitcoin market. If not, this could cause complicated accounting of Tesla holdings, hence, shooing away investors.

Did you Know?

In the recent few months, Tesla has been seen playing around with bitcoins on Twitter. Constant buying and selling of bitcoins, supplemented by Musk's witty tweets has set an irregular storm in the bitcoin and overall cryptocurrency market.

The Elon Musk Angle:

Elon Musk, an avid Twitter user, has been criticized all along for his changing stance on cryptocurrencies, in the beginning of 2014, he was found supportive of digital currency, ever since the crypto market has only risen in leaps and bounds. But then later he also gave out hints about withdrawing his investment in bitcoins, for environmental reasons, but then kept some investment anyway. For further details, check bitcoin loophole App

Conclusion:

Bitcoin is one of the most popular and significant digital currencies that is present in the market today. Ever since its introduction to the digital world, experts have foretold its growth. It holds the potential to forever change the financial market system and business situations. With the CEO of the two most successful companies, SpaceX and Tesla entering the crypto market with such pomp and show indicate a lot of changes that the world is destined to see in the coming days. Cryptos are volatile assets, although Musk is not the only player in the market, his actions do bring a lot of changes in the crypto eco-space. However risky, volatility is the key to higher returns of investment.

We hope this article has added to your perception involving Elon Musk and his playing around with cryptocurrencies, bitcoin to be specific.