Today is a huge day for Bitcoin. Maybe the biggest day ever. Today, Tesla bought $1.5 Billion of the cryptocurrency and also said it plans to accept it as payment.
Tesla’s move into bitcoin represents an investment of a significant percentage of its cash in the investment. The company had more than $19 billion in cash and cash equivalents on hand at the end of 2020, according to its most recent filing.
Elon has been rather vocal lately about Bitcoin and other cryptocurrencies on Twitter and Clubhouse saying, “I do at this point think bitcoin is a good thing, and I am a supporter of bitcoin.”
Given Elon’s influence, this is the biggest endorsement the currency has gotten to date and this propelled its price nearly 14% to a new record high of $44,900.
What might be the biggest deal of this announcement is the fact they will accept it as a form of payment. This challenges many ideals around the currency as it being a store of value that we should HODL vs a medium of exchange for goods or services. Either way, this will create liquidity in some way shape or form for Telsa and maybe the broader market as more follow in Tesla’s footsteps.
A secondary effect of this is we should start to see more fortune 500 companies add Bitcoin to their balance sheet out of fear of missing the boat. The scarce nature of Bitocin will force people’s hand faster than they might have imagined so we are going to be seeing news like this more frequently.
CONGRATS TO THOSE OF YOU THAT HAVE BEEN BELIEVERS! This is a day for the history books. Take a look below to see what people are saying.