On Twitter, Tesla’s CEO Elon Musk announced that the company can now accept Bitcoin payment in buying Tesla vehicles. Previously, Musk disclosed its plan to include cryptocurrency as part of the future’s mode of payment.
Elon Musk, Tesla’s CEO, made the announcement that the company is now ready to accept Bitcoin payment in the US. Tesla reportedly bought $1.5 billion worth of bitcoin last month and indicated to include cryptocurrency as the future’s mode of payment.
A support page on the official website of Tesla explains how customers can pay using digital currency. Typically, the company’s electric vehicles cost within the range of $37,990 and $124,000 excluding tax, says Sam Shead of CNBC.
Customers outside of the US will be able to buy a Tesla vehicle using Bitcoin payment later this year. Says Musk without mentioning any country. The company is using internal and open-source software to accept the bitcoin payment. He added saying that the company directly operates bitcoin nodes.
Tesla operates on nodes as it accepts bitcoin payment
A node is actually a computer that is connected to other computers within the network that follows rules and sharing of information. It can verify transactions to avoid the double-spending of cryptocurrency.
Musk was criticized for apparently saying that the company is committed to producing environmentally friendly cars. But ironically allows bitcoin payment which has been accused to be environmentally hazardous.
Researchers from the University of Cambridge found out that bitcoin uses more electricity than the whole of Argentina. Last 2018, a paper was published in Nature, a well-respected academic journal in the world. The paper argues that bitcoin emissions alone could accelerate global warming to above 2 degrees Celsius.
Despite this reported argument, Musk still embraced bitcoin more than any other major tech CEO. Every now and then, he has been tweeting about cryptocurrency including ether and dogecoin during the last few months.
Tesla’s share price and bitcoin’s value are tied up
An analyst of Wedbush Daniel Ives said that Tesla’s share price is directly tied up to the bitcoin price. Both Tesla’s share price and bitcoin’s value have experienced a bullish run breaking several all-time-high levels over the past year. Tesla’s share price soared from around $100 to over $600 and even reached almost $900 last January. Bitcoin’s value also soared from almost $7,000 to over $50,000, even reaching over $60,000 last Mar 13.
Some analysts, however, are advising the public not to be carried away by the prospect. Instead, investors are advised to do the due diligence before investing in Tesla or Bitcoin. Some investors even have been shorting on Tesla, which is profiting when the price falls down from the buying price.
Last January 8, Tesla’s price reached its all-time-high level of about $880 and currently down by almost 30% to about $630. Investors are advised to do their due diligence before buying or shorting Tesla or Bitcoin. Trading can be very volatile thus needing a certain level of understanding.
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