Tuesday Feb 09, 2021
The price of Bitcoin surged by over 22% after tech billionaire Elon Musk invested a whopping $1.5bn in the cryptocurrency, taking it to an all-time high on Tuesday.
The price of a single Bitcoin increased after news of the billionaire's investment broke to reach $47,787.54, its highest in 24 hours.
After announcing his latest investment move, Tesla said that it will accept Bitcoin as payment for its high-end cars soon.
Tesla's Bitcoin announcement came amid interest shown by Musk in the cryptocurrency, with various Tesla customers requesting the carmaker to accept Bitcoin as payment for vehicles.
Bitcoin has intrigued people since it is scarce but it has not been widely used in the trade of goods and services. It’s mostly been a store of value, like gold, with some limited merchants like Overstock accepting bitcoin for payment.
It remains unclear whether other companies will follow suit in accepting Bitcoin as a digital currency. However, the cryptocurrency may be appropriate in buying a car since it is an expensive item.
However, some fear the volatile nature of the currency will have adverse impacts on the products and their prices.
"Tesla is in a unique position to accept digital currencies for payment, since the automaker does not rely on a network of independently owned dealerships to sell its vehicles unlike traditional car companies such as General Motors and Ford," read a post on The Statesman.