Yes, it is now possible to buy a Tesla in Bitcoin! Elon Musk, the boss of Tesla, announced on Tuesday 24 March on his Twitter account that it was now possible to buy the cream of electric cars in Bitcoin! The cryptocurrency behemoth needs no introduction. In fact, it has been enjoying a veritable bull run since the third quarter of 2020. Its economic prowess is attracting more and more major companies, who are starting to bet on it, unless it's their confidence in Bitcoin that's driving its share price insanely high. Either way, Tesla is the latest in a growing list of companies that see Bitcoin as a major economic player for the future.
Tesla offers Bitcoin exclusivity for cryptocurrency purchases!
The news was announced by Elon Musk in all simplicity on his Twitter account on Tuesday 24 March: "You can now buy a Tesla in Bitcoin".
The rapprochement between Tesla and Bitcoin began back in February, when Tesla bought $1.5 billion worth of Bitcoins, representing around 8% of its liquid assets (since its cash reserves total $19 billion). This investment already demonstrated the confidence that Tesla boss Elon Musk had in Bitcoin!
A confidence in Bitcoin that Elon Musk reiterated in a second tweet by announcing that the Bitcoins received from the proceeds of sales would not be converted into dollars, but stored by the company. So the electric car giant is investing in Bitcoin on a massive scale!
"Tesla uses only internal and open source software and operates Bitcoin nodes directly. Bitcoins paid to Tesla will be stored as Bitcoins and will not be converted into fiat currency. "
Elon Musk also announced that Bitcoin would be the one and only cryptocurrency accepted to buy Tesla cars. An exclusivity that will only reinforce the supremacy of Bitcoin, which is already in full bull run.
Bitcoin in full bull run since late 2020
Bitcoin has been the talk of the town since the third quarter of 2020. The cryptocurrency behemoth, which has been the market leader since its launch, is now in the midst of a bull run.
Bitcoin's price has literally been soaring since the end of 2020. After starting the month of October at around 9,000 euros, the price of Bitcoin rose phenomenally to reach around 49,360 euros (58,274.257 US dollars) on 19 March this year. One Bitcoin is currently selling for €45,032.53 ($53,028.74).
Bitcoin has, of course, dragged other cryptocurrencies along with it in this uptrend. Nevertheless, it remains well ahead of the pack, with a total market capitalisation of €841,350,259,975. It now dominates the market at 59.15%.
By way of comparison, Ethereum, which is second on the market, remains far behind, with its token currently priced at €1,384.81 and its market capitalisation at €159,541,368,792.
Bitcoin's price influenced by its big investors?
Some believe that the incredible rise in Bitcoin's price is due to the growing investment in the cryptocurrency by major companies and business leaders. This theory seems to be borne out by the effect of Elon Musk's tweets on the price of Bitcoin. A single #bitcoin on his Twitter account in January was enough to push the Bitcoin price up by $8,000! When the possibility of buying a Tesla in Bitcoin was announced, the price rose by 3%.
Bitcoin remains extremely volatile, a characteristic common to all crypto-currencies. The slightest announcement about it can cause its price to soar or plummet.
So Elon Musk will have to be extremely careful with his tweets in future! This is not the first time that his words have had such a considerable influence on a stock. The SEC (Securities and Exchange Commission), the US stock market watchdog, has warned him in the past to be careful what he says on Twitter. Now that a large part of Tesla's capital is in Bitcoin, any comment that causes the Bitcoin price to rise could result in him being accused of attempting to manipulate its price. He could then have his Twitter account deleted.
Bitcoin is not, however, the only cryptocurrency promoted by Elon Musk. The Tesla boss has shared several tweets about Dogecoin, including polls for his followers.
"Earth's future currency: Dogecoin on luuuuuuune: 71.3%. All other cryptos combined: 28.7"
So Elon Musk is very optimistic about the future of cryptocurrencies, and he's far from alone.
Payments in Bitcoin are becoming increasingly widespread
Today, Bitcoin is accepted as a means of payment at many companies other than Tesla:
Microsoft Xbox
Windows Store
Virgin Galatic
Reddit
Subway
Playboy
Pornhub
Badoo
Fancy.com
WordPress
Wikipedia
And many more besides.
This growing recognition is having a positive impact on its price. The investment of many companies and businessmen in Bitcoin is seen as a sign of quality by the public. Now, the growing possibility of paying in Bitcoin is only adding to its popularity. Bitcoin is gradually becoming part of everyday life, setting itself apart from other cryptocurrencies and their sometimes closed and obscure appearance in the eyes of the general public. Many people saw no point in investing in a virtual currency. Now that it is possible to make purchases in Bitcoin from well-known brands such as Tesla, the general public is taking a fresh look at Bitcoin. This possibility also gives it a secure character that reassures consumers.
So what are the forecasts for the Bitcoin price?
Bitcoin's bull run is bound to come to an end, and its price will eventually fall back. Nonetheless, the uptrend is likely to extend a little further into the future. According to analysts, 2021 should be a good year for the Bitcoin price.
In any case, Bitcoin's growing presence in our daily lives is a good omen not only for the future of the behemoth, but also for that of all the cryptocurrencies that follow it. Now in the spotlight, this market is set to become even more dynamic than it already is.
