Bitcoin (BTC) recently saw one of the most significant developments in its history. The EV giant Tesla announced that it bought $1.5 billion in bitcoin. This investment is a powerful sign that the future for Bitcoin is bright, as more and more big companies and investors are starting to see that the digital currency is a game-changer.
Tesla invests $1.5 billion, Elon Musk is a Bitcoiner
In a recent document filed with the Securities and Exchange Commission (SEC), Tesla announced that it bought $1.5 billion in bitcoin. The investment is part of a new treasury policy that states the company will invest some of its treasury in bitcoin or other alternative investments from time to time. But that is not all. In the document, the company states the following:
“We invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or longterm. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt.”
This is BIG news; not only did Tesla buy an enormous amount of bitcoins, but the company will also start to accept the cryptocurrency as a payment method for its electric vehicles. It goes without saying that this will be a significant boost for the adoption of Bitcoin. The developments are not just good for Tesla, though.
As Tesla announced it bought bitcoin, all mainstream media were talking about Tesla and Bitcoin. And as Tesla is a famous brand, many new people were exposed to Bitcoin and now consider buying bitcoin or buying their new Tesla car with bitcoins! The bitcoin price, of course, immediately saw a positive move. On the same day of the announcement, the BTC price rose 25% and now trades close to $50.000.
Bitcoin is here to stay; miners see increased profitability
As bitcoin rose in value, of course, the profitability for bitcoin miners increased. Their mined bitcoins are now worth more, increasing their profits. That bitcoin mining has become more and more popular, especially during the past couple of months, becomes clear when we look at the hash rate. The hash rate, or computing power of the network, reached a new all-time high (ATH) of 165 million terahashes per second. This indicates that more miners have entered the market.
Tesla’s investment is likely convincing other companies to also invest in bitcoin. Where we already saw MicroStrategy buy bitcoin, the investment of Tesla likely has a more significant impact as it is such a big and famous brand worldwide. Will we see a wave of companies and investors buying and using bitcoin? The Bitcoin miners are buckling up for what is to come!