Elon Musk’s Announcement of Tesla Accepting Bitcoin Payments Pushes BTC North

Elon Musk’s Announcement of Tesla Accepting Bitcoin Payments Pushes BTC North
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The announcement fueled a short rally in BTC price despite its losing strength against the USD. Accepting Bitcoin payment is a major step in getting it into the mainstream financial ecosystem.

Bitcoin (BTC) which seemed under pressure earlier today has now reversed its trajectory northwards. Thanks to Elon Musk who once again came to the rescue of the Bitcoin investors. Earlier today, Musk announced that automobile giant Tesla Inc (NASDAQ: TSLA) has now started accepting Bitcoin (BTC) payments against its car purchases.

Musk’s official announcement was enough to add fuel to the Bitcoin price.Even with the Dollar strengthening, the Bitcoin surging 5% overshadowed these concerns.At press time, Bitcoin (BTC) is trading at $57,023 with a market cap of $1.067 trillion.

Apart from just announcing that Tesla will accept Bitcoin payments, Musk made further disclosures.In his words, Tesla will run Bitcoin nodes directly by using its internal and open-source software.Furthermore, he added that Tesla will continue to hold all the payments that it received in BTC.

Musk’s announcement has created a major buzz in the crypto space.The move has been called a significant step in the evolution of Bitcoin payments.Popular crypto market Alex Kruger writes:

“Nothing like good old fashioned bullish news to reverse a short-term downtrend. Yes, Tesla accepting Bitcoin payments and running its own Bitcoin nodes is massively bullish. Others will follow”.

Tesla and BTC

Tesla’s adventure with Bitcoin is nothing new.This makes up one of the biggest corporate Bitcoin investments, as the company announced last month that it purchased half a billion dollars of Bitcoin.Tesla is still now the only top-ten company in the world to have put its reserve cash in Bitcoin.

So far, Tesla’s Bitcoin bet has paid the company pretty well. During its S1-form filing with the US SEC, Tesla said that it purchased Bitcoins at a price of around $33,000.The current Bitcoin rate means that Tesla's profits are nearly $1billion.Although the company hasn’t yet booked its profits, Tesla’s Bitcoin earnings are more than Tesla’s profit for the entire 2020.

This has led to a rise in corporate adoption of Bitcoin.But Tesla is not the only company to accept Bitcoin as payments. recently, a report emerged that even Microsoft is accepting Bitcoin as an in-game payment option for its Xbox ecosystem.

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Bhushan Akolkar
Author Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets.He was drawn to the new emerging Blockchain Technology and Cryptocurrency markets because of his interest in economics and finance.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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