The electric car maker, Tesla Inc. announced on 8th February 2021, the largest cryptocurrency investment of $1.5 billion. After the announcement, Bitcoin hit a new record above $47,000 on Tuesday. Tesla also said, “It will start accepting the digital token as a form of payment for its products”, which would mark the company, the first-ever automaker for doing so. Elon Musk, Tesla’s chief executive officer, has commented “The future currency of Earth” on his social media platform about digital coins and soaring their prices. Tesla has started investing in bitcoin for a significant percentage of its cash in the stock. Tesla had over $19 billion in cash at the end of 2020.
The company revelation on Monday raised the price, the token raises as much as 6.3% almost $47,493 in Asian trading. Before the disclosure of Tesla, it was about $46,455 as of 12:22 pm.
Vijay Ayyar, head of Asia-Pacific with cryptocurrency exchange Luno in Singapore said, “One by one, corporations will add Bitcoin to their balance sheets, and it couldn’t get bigger than Tesla, imagine if 100 companies start putting even 1% into Bitcoin, what that is going to do to demand and supply”.
Two weeks ago CEO of Tesla, the world’s richest man, Elon Musk, added the hashtag – #bitcoin to his Twitter bio. This is the reason that helped raise the price of a cryptocurrency (bitcoin and dogecoin) by 20%. Two days later, Musk said on his social media site chat Clubhouse. Elon Musk is a supporter of bitcoin, and just after this statement, the bitcoin price surged, and the share of Tesla was up by over 2%. His tweet encouraged more people to invest in digital currencies.
