Theres a clear advantage to welcoming Bitcoin– Tesla can court recently minted cryptocurrency millionaires itching to invest their fortunes on a brand-new Model S. The financial investment is something of a gamble. The $1.5 billion represents a significant portion of Teslas roughly $19.4 billion in cash, and its entirely possible that money could vaporize if Bitcoin rates plunge. The car manufacturer clearly hopes Bitcoin has an intense future, which committing to the format helps legitimize it.
Elon Musks cryptocurrency buzz was more than simply idle talk. Its the very first significant automobile maker to take Bitcoin for purchases.
Tesla fasted to alert financiers that cryptocurrencies like Bitcoin tended to be “highly violatile,” with quick rate changes and theoretical vulnerability to regulatory modifications, “malicious attacks” and “technological obsolescence” that doesnt exist with physical formats. Musk understood his own result on Bitcoin, cautioning in a Clubhouse chat that he might “move the market” if he wasnt careful.
Not surprisingly, Teslas move simply did that, triggering a Bitcoin price rise to over $44,000 as of this writing.