Bitcoin (BTC) Shoots 4.5% As Tesla Starts Accepting Bitcoin Payments, Won’t Convert to Cash

By Bhushan Akolkar
Published March 24, 2021 Updated March 24, 2021
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Bitcoin (BTC) Shoots 4.5% As Tesla Starts Accepting Bitcoin Payments, Won’t Convert to Cash

By Bhushan Akolkar
Published March 24, 2021 Updated March 24, 2021

World’s largest automobile company Tesla is once again here to rescue Bitcoin (BTC) from falling further. An hour back, Tesla boss Elon Musk tweeted that the company has started accepting Bitcoin payments against the purchase of any Tesla model.

The announcement was enough to push Bitcoin’s (BTC) price 4% northwards. As of writing this story, the BTC price is trading at $56,139 with a market cap of $1.047 billion. Elon Musk said that Tesla will operate the Bitcoin nodes directly while using its internal; and open-source software. Besides, another bullish indicator is that the company plans to retain its Bitcoins received as payments instead of converting them to cash.

This shows how bullish Tesla is on its Bitcoin (BTC) bet and the future of the world’s largest cryptocurrency. Last month in mid-February 2021, Tesla made the official announcement of purchasing $1.5 billion worth of Bitcoins at the price of around $33K.

Tesla Leading the Corporate Bitcoin Movement

Tesla’s entry into the Bitcoin market has also sparked major corporate interest as big companies are mulling to move part of its balance sheet to BTC. Interestingly, Tesla has already made more than $1 billion in returns from its Bitcoin bet in a month’s time, which is more than the company’s total earnings for the last year.

The company has already said that it updated its policy “to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term,” it added.

However, Musk’s love with Bitcoin (BTC) hasn’t been to the moon as expected. A few weeks back, Musk called Bitcoin “as bs (bull-shit) as fiat”. Defending Tesla’s Bitcoin investments, Musk said that it was the collective decision of his entire board of directors. Musk has been vehemently supporting the meme-cryptocurrency Dogecoin for a long-time. Recently, Musk also tried his hands at the NFT craze, but later dropped-off the idea.

As Tesla provides Bitcoin the reason to once again resume the northward journey, here are some on-chain fundamentals supporting the bullish momentum ahead.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan Akolkar
826 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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