Elon Musk and Tesla just gave Bitcoin a Major Boost | Tesla Buys Bitcoin

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Tesla Buys Bitcoin
Tesla Buys Bitcoin

Tesla Buys Bitcoin

According to multiple reports, Tesla has purchased $1.5 billion worth of bitcoin. The company has also moved to make it possible to pay for Tesla’s cars with Bitcoin. This is a big move by Tesla, which further pushes bitcoin into the mainstream marketplace.

 Elon Musk is a known disruptor, so this move should come as no surprise. Elon Musk has a vision of the future he would like to see become a reality, and this is just another move in that direction. Elon Musk is currently disrupting the transportation and energy industry as well as the space flight industry. Think of this move as disrupting the financial sector as well as a good investment.

Tesla Has Faith in Bitcoin as The Future of Money?

This move by Tesla represents a sizeable portion of its cash at hand in its investment into Bitcoin. The company had over 19 billion dollars in cash on its balance sheet, according to its filings. So to invest $1.5 billion into bitcoin means Tesla sees it as a valuable investment. Tesla might have also seen a significant return already, as one Twitter user pointed out: 

“Assuming that Tesla and Elon Musk bought Bitcoin over the last couple of weeks, we can use an estimated purchase price of $35,000. If that is the case, they would already be up about 25% on the $1.5 billion purchase. It is smart business for corporations to own Bitcoin.”

The price of Bitcoin will continue to rise as it becomes more mainstream, and more institutions and companies pour capital into the cryptocurrency. With Tesla also accepting payments for its cars in Bitcoin, this might cause competition to do the same, which would further increase the value of bitcoin.

Why Bitcoin is a Good Investment for Companies?

The two main reasons Bitcoin is a good investment for Tesla, as well as for other companies are liquidity and its ability to increase in value.

Bitcoin Liquidity

Bitcoin is a currency, which means that it can freely move around the market without losing much of its value. In other words, if companies like Tesla hold on to their shares of bitcoin and accept payments in bitcoin, which means they can buy and sell and even pay their workers with bitcoin. They are operating liquid transactions without losing the value of Bitcoin.

Bitcoins Ability to Increase in Value

Bitcoin is a finite resource or currency. There is a 21 million bitcoin supply. This means that the more demand for Bitcoin goes up, the more its values go up due to its limited supply, simple supply, and demand at work. Bitcoin’s limited supply is also why it’s a better investment than holding cash. The Dollar supply is always increasing, which also increases inflation. The inflation in the dollar means you will need more to buy goods and services each year.

Bitcoin’s limited supply and increasing demand, coupled with its liquidity as a currency, make it the perfect investment for companies. If any company was skeptical, Tesla’s investment in Bitcoin should be all you need to know that Bitcoin is here to stay and is a good investment.

Tesla Buys Bitcoin

By Yaad Finance

Yaad Finance is here to educate and expose as much Jamaicans Yaad and a broad, about financial literacy, investment, real estate and much more.

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