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Good news for Bitcoin lovers. You can now buy your next electric car from Tesla using Bitcoin as Elon Musk, CEO of Tesla aka TechnoKing of Tesla said in his recent tweet. Musk said that the Bitcoin paid to Tesla will not be converted into regular currency by the company. Moreover, the option for paying in Bitcoin will be available outside the United States later in 2021.
Musk’s social media activity has been impacting the price of bitcoin. Shortly after Musk’s tweet, the price of bitcoin surged by approximately 3 percent and hit $56,242. Woah! That much money can buy you an entry-level Tesla Model 3, costing around $40,000. Slightly more than two bitcoins and voila, your Model X Plaid (starting at around $120,000) is ready to take you on a drive!
“This is a seminal moment for Tesla and for the crypto world,” acknowledged an analyst from Wedbush Securities, Dan Ives. He further added that although fewer than 5% of transactions are expected using Bitcoin keeping in mind the coming 12 to 18 months. However, this could potentially increase as acceptance of cryptocurrency increases in the future. Hmmm, interesting! Tesla had revealed its plans regarding the acceptance of digital currency as payments earlier. Last month, the company in its annual filing with the Securities and Exchange Commission (SEC), signaled that it intended to commence accepting bitcoin as payment for Tesla products initially. The giant itself has invested as much as $1.5 billion in bitcoin. The motive behind the investment was to convert some of the company’s cash into an alternative reserve asset.
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After these recent developments, the company’s chief financial officer, Zach Kirkhorn, has been given the title, “Master of Coin.” Musk, during one of his interviews given earlier this year, said that he thinks that bitcoin is now gaining “broad acceptance by conventional finance people.” He also added that he should have bought cryptocurrency eight years ago. As of now, TechnoKing has not shared its strategies in detail regarding the processing of bitcoin payments. But Musk mentioned that the company will be making use of “internal and open-source software.”