Tesla Invests $1.5B in Bitcoin - Signs That Bitcoin Will Soon Be Accepted as A Payment Method

Tesla plans to change its investment policy in January 2021. According to the changed investment policies in January, Tesla will buy digital currencies or gold for its reserve assets to provide “more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity.” Also, according to a report submitted to the Securities and Exchange Commission, bitcoin has been bought by Tesla for about $ 1.5 billion.

Bitcoin price from 02/07/2021 to 02/08/2021 (Image: Coindesk)

The price of Bitcoin has been on the rise since the beginning of 2021, with a growing number of companies and average buyers, but with the news of Tesla’s investment, Bitcoin has now surpassed its all-time high of $46,000.

In the past, Tesla’s customers have told its founder, Elon Musk, to accept Bitcoin as a payment method when buying Tesla vehicles. Now, Tesla hope to start accepting Bitcoin in the near future as a payment method for their products, subject to the relevant products and on a limited basis.

Elon Musk also wrote #bitcoin in his Twitter account profile bio, which led to a 7% increase in the price of bitcoin. According to the marketcap.com website, bitcoin, which is the oldest and biggest cryptocurrency, currently has a market value of $818 billion, just behind Tesla’s $823 billion but ahead of Facebook’s $757 billion.

This sudden surge in prices has affected many cryptocurrency exchanges and even partially deactivated websites trading on Binance, Coinbase, Gemini and Kraken.

The investment in bitcoin also follows news of Tesla’s revised Model S. Since introducing the electric sedan in 2012, Tesla has just announced its first major redesign of the Model S. In March, the revamped vehicle will be available and includes a revised design, new interior, and a 520-mile range option.