March 24, 2021 – Tesla chief and self-proclaimed ‘technoking,’ Elon Musk, released a tweet indicating that the company will now be accepting Bitcoin as a form of payment for its vehicles. Though this option is not available outside the U.S. right now, it highlights the automaker’s growing interest in the famed cryptocurrency.
Additionally, the Bitcoin used as payment will not be converted to hard currency. Instead, it will become a part of the company’s Bitcoin reserves judging by its holding strategy.
Just a month ago, the car manufacturer invested in $1.5 billion worth of Bitcoin, propelling the currency to new heights and briefly making Musk the richest person on the planet when its share price increased to unprecedented levels. Since then, the company has experienced a downward trend, losing approximately a third of its stock price. You can visit https://bitcoin-buyer.app for more details about the bitcoin trading
Musk’s announcement didn’t help much as stock prices increased by only a few percent. Only time will tell if buyers are interested in parting ways with their precious Bitcoin.
How does it work?
In a follow-up tweet, Musk revealed that the company plans to use in-house and open-source software to facilitate payments. Also, interested buyers can view a support page on their website to get additional details, clearly identifying its intent to only use Bitcoin as a form of payment for now and plans to expand in foreign markets later in the year.
Payment can be made via scanning a QR code presented to the buyer or by initiating a transaction through one’s Bitcoin wallet by using the address provided by the company. Buyers should know that the transaction is time-sensitive, causing the payment options to no longer be viable once a certain amount of time passes by. Perhaps this policy is placed to account for the volatile changes in Bitcoin prices. Once the payment is complete, it may take up to 6 hours to process the transaction, at the end of which, buyers are notified of successful payments.
What does this mean for Bitcoin?
Over the past couple of years, Bitcoin has seen turbulent growth, with its current price nearing $60,000. Initially, it was just individual investors and crypto enthusiasts taking an interest in the currency that drove its price to the $20,000 mark in 2013, but now, big institutional investors are joining in too, buying more and more Bitcoin than currently mined. Because of this reason, it would be wrong to call Bitcoin a currency as most people only look at it as an investment tool.
With Tesla leading the front in facilitating Bitcoin transactions, other tech giants like PayPal and Microsoft may soon follow suit. This move may usher in a new era where the asset gets traded like an actual currency rather than getting held in anticipation of price hikes, in turn reducing its volatility.
The power of Musk…
After Musk’s announcement regarding Bitcoin payments, many users on Twitter wanted to know its plan for Dogecoin. Although Tesla has made no clear indications regarding its plan for any other cryptocurrency, it is understandable why many netizens would think that Dogecoin would be Tesla’s next choice.
With his Twitter followers reaching close to 50 million in number, Musk regularly uses the platform to express his views on popular cryptocurrencies. Last week, he tweeted about getting a Shiba Inu – a dog breed native to Japan. Many took this as an indication of the company’s interest in the Shiba Inu (SHIB) token on the Ethereum blockchain, and of course, the meme cryptocurrency Dogecoin with its own decentralized network. Both of these digital assets saw unprecedented highs in their value, with the Shiba Inu token soaring to over 300% of its value after Musk’s tweet.
This goes to show the tremendous power Musk has when influencing investors towards a particular goal. However, how long will it be before the general public realizes that he’s not an expert on the matter but instead abusing his power for his own benefit?