Elon Musk’s luxurious automotive model Tesla depends on Bitcoin

The richest man in the world, the outsider SpaceX and Elon Musk, CEO of Tesla, has more than significantly influenced the market for cryptocurrencies.

Musk, who overtook Amazon mogul Jeff Bezos as the world’s most valuable individual in January, has long been seen by crypto enthusiasts as having a keen interest in digital currencies, with a number of reference tweets on coins like bitcoin and meme currency Dogecoin appeared on his timeline in the last quarter alone.

This is Musk’s influence on social media among tech enthusiasts. A simple tweet about Dogecoin – a “joke currency” developed in 2013 that bears the trademark of the infamous Shiba Inu dog – saw the currency rush, causing it to appreciate exponentially.

As more services are developed for the casual crypto trader like https://btcrevolution.io, the actions of influential figures like Musk can have a massive impact on the sentiment behind certain currencies. Because of this, Bitcoin hit an all-time high on its final move.

Elon Musk, CEO of Tesla, is apparently a big fan of Bitcoin. Photo credit: kathclick / Bigstock.com

Centibillionaire Musk’s luxury electric vehicle brand, Tesla, filed a $ 1.5 billion investment in Bitcoin with the Securities Exchange Commission (SEC) while also confirming that customers will soon be able to buy their own Tesla vehicles using the cryptocurrency .

Tesla said, “We expect to be accepting Bitcoin as a means of payment for our products in the near future, subject to applicable laws and initially to a limited extent.”

The company stated that the motivation behind the move is “to allow more flexibility to further diversify and maximize the returns on our cash,” and many crypto enthusiasts see the Silicon Valley company’s move as just another example for the gradual acceptance and acceptance of cryptocurrency in the mainstream.

Eric Turner, a senior executive at crypto research firm Messari, said, “I think we’ll see an acceleration in companies looking to allocate bitcoin after Tesla takes the first step.

“One of the largest companies in the world now owns bitcoin, and in a broader sense, every investor who owns Tesla, or even an S and P 500 fund, is also involved in bitcoin.”

With Elon Musk’s luxury electric vehicle brand, Tesla, customers will soon be able to buy their own Tesla vehicles using Bitcoin. Photo credit: classy / Bigstock.com

While investor engagement is an important pillar of the entire cryptocurrency ecosystem, another pillar is adoption – and Bitcoin continues to find its way into more and more markets as a medium of exchange. More recently, PayPal has risen aboard the train, while crypto is also making its way into luxury homes and rentals.

It’s not just on Twitter that Musk advocates the virtues of all things crypto, but a few weeks ago he shared his views on the decentralized currency in the chat app Clubhouse by invitation only.

He is reported to have said: “I am a supporter of Bitcoin. I’m late for the party but a supporter. I think Bitcoin is about to be widely adopted by conventional finance professionals. “

Of course, not everyone is as optimistic about blockchain as Musk is, and the motivation for Tesla’s decision to accept Bitcoin could simply be a long-term business strategy.

Thousands of people are using cryptocurrencies to improve their standard of living

After all, the emerging cryptocurrency elite don’t share the same cultural DNA and demographics as traditional, high-quality individuals – they’re typically a tech-savvy, younger crowd. By making Tesla products available for purchase via Bitcoin, the company presents itself as an attractive offer for wealthy cryptocurrency investors.

Gambling is also not as important as it might seem at first glance. With an enterprise value of over $ 800 billion, a $ 1.5 billion investment in Bitcoin could prove to be an easy loss guide in the medium to long term. If things go well and the price of Bitcoin stays stable, it may not be long before Tesla sells enough products to the crypto market to recoup their initial investment.

In the short term, Tesla’s investment is already in the black. As of Tuesday, the vehicle manufacturer’s $ 1.5 billion has already raised $ 561 million as the value has increased. Of course, the value of the cryptocurrency tends to fluctuate quite a lot and the evidence will be long term.

One thing is certain, however, the debate about cryptocurrency as an investment will not be lost – and the market value will continue to rise for the time being.

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