On Monday, Bitcoin surged to an all-time high after Tesla buys $1.5 billion in bitcoin, becoming the most prominent company yet to back the controversial cryptocurrency.
Bitcoin soared to as much as 15% following Tesla’s declaration in a regulatory filing, with prices surpassing $44,000 for the first time. Tesla additionally stated that it would start accepting the cryptocurrency as a payment method for its electric cars. That would make Tesla the very first major automaker to do so. The 1.5 dollar billion in bitcoin purchase will offer Tesla liquidity in the cryptocurrency once it begins taking the cryptocurrency for payments.
Tesla Invests $1.5 Billion in Bitcoin
The recent investment from billionaire Elon Musk in the most popular cryptocurrency shows a huge sign of support for the cryptocurrency, which has been criticized several times by policymakers for facilitating money laundering and fraud.
Antoni Trenchev, managing partner and co-founder of Nexo in London, stated that a $1.5 billion investment in bitcoin from the globe’s richest man explains the volumes about the extent to which crypto gets institutional adoption.
Trenchev stated that by the end of 2022, he anticipates that at least 10% of S&P 500 companies will be investing in the cryptocurrency.
ElonSeveral other companies have invested in the crypto token: MicroStrategy Inc. has invested around $1.1 billion on the token. In October, last year Square Inc., founder and crypto advocate Jack Dorsey, declared that it had converted around $50 million of the total assets as of the second quarter of 2020 into bitcoin. Proselytizers like Bill Miller of Miller Value Partners have stated this was just the beginning of what was sure to be a trend across Main Street.
On December 17, bitcoin surpassed $23,000 mark to hit all-time high. Since then its unstoppable
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