The year has started favorably for cryptocurrencies, especially for Bitcoin, which has increased its interest and has been re-evaluated thanks to the confidence that many institutional investors have shown, especially investment funds, which have in common clients familiar with cryptocurrencies, is the case of Tesla and its CEO Elon Musk.
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Tesla Investment
In recent days Tesla announced a purchase of $1.500 million in Bitcoin, which automatically generated the increase in the price of this currency by 17% of its value, reaching $44.200 per unit and whose value exceeded $52.000 per unit in less than a week.
Why has this type of investment made?
This investment has been made by Tesla due to that they intend to maximize the profitability of the cash that is not used in the daily operation of the company, in this way even when the price of the bitcoin has shown to be volatile, Tesla sees in bitcoin a way to protect its assets since they are diversifying the risk in their portfolios. We can say that they are having in bitcoin, as with gold, a safe haven asset.
Tesla and its new investment policy
In January, Tesla had released an update in its investment policy, and its projection is based on investing capital on assets as is the current case of cryptocurrency, as well as they also want to invest in funds quoted in gold-exchange- traded funds or even in gold bullion. Tesla has already made the investment in digital assets and plans to continue acquiring and maintaining digital assets, and soon will even accept bitcoins as payment to acquire its products.
A new boost for bitcoin
While it is true that bitcoin is the most valuable and accepted coin worldwide, this and all cryptocurrencies still have a long way to go to become the preferred form of payment worldwide. However, this move made by Tesla has been considered a great boost for bitcoin, first with a millionaire investment to get bitcoins and second with the acceptance of this cryptocurrency as a payment to acquire products of Tesla, it will definitely be the point where its value will continue to grow, as well as its confidence for other companies and investors and finally, we will see how this means of payment will spread around the world since undoubtedly, transactions with cryptocurrencies have a lot of advantages compared to transactions in FIAT money and currencies. An example of this advancement is the new released by another of the companies created by Elon Musk, Paypal, which says that throughout 2021 it will allow the use of cryptocurrencies as a means of payment in all businesses that work with said platform.
Do you have any opinion on this topic? Do you think Bitcoin will be the asset of the future? Is this Tesla’s investment positive for cryptocurrencies?
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Image by Brandon Martinez via Pixabay.com under Creative Commons license.
