Tesla CEO Elon Musk Buys $1.5 Billion in Bitcoin and Invested in Digital Currency

Advertisement

Tesla CEO Elon Musk makes no secret of his enthusiasm for cryptocurrencies. In the past few days, his tweets have given some currencies a boost. Now it is known: The carmaker has invested itself and wants to accept Bitcoin payments soon. The course takes off.

The US electric car manufacturer Tesla is relying on the cryptocurrency Bitcoin on a large scale. As announced by CEO Elon Musk, Tesla invests $1.5 billion (1.25 billion euros) in the digital currency. The value of Bitcoin had risen sharply in recent months – at the beginning of January, it climbed to over 40,000 dollars.

Elon Musk

Tesla’s commitment to Bitcoin has given the oldest cyber motto a tailwind. It rose by more than 15 per cent to a record high of $43,744.43 and headed for the most considerable daily profit in barely a year. Musk had already made his stance on the currency clear on Twitter a few days ago.

“That Tesla boss Elon Musk is a friend of the cryptocurrency should be known,” said analyst Timo Emden from Emden Research. “The fact that Tesla is now investing on a large scale in the number one cryptocurrency leaves investors on cloud nine.” Musk had given both Bitcoin and other internet currencies a boost with positive tweets in the past few weeks.

“Nothing can stop the rise of Bitcoin now,” said Naeem Aslam, chief market analyst at brokerage firm AvaTrade. “The next stop is at $50,000; then it’s toward $65,000.” However, some Tesla investors could be concerned about disclosing the Bitcoin investment, warned Neil Wilson, chief analyst of the online broker Markets.com. After all, the cyber motto is very susceptible to fluctuations. The electric car builder is thus adding risks to its balance sheet.

An important reason for the upswing in recent months was the payment service PayPal announcement in autumn that it would allow account holders to use cryptocurrency. The idea behind the digital currency is a currency that exists independently of states, central banks and monetary policy. Unlike traditional currencies, digital means of payment are not controlled from a central point, and bookings do not have to be confirmed by a central point.

Advertisement

Leave a Comment