Cybernews
  • News
  • Editorial
  • Security
  • Privacy
    • What is a VPN?
    • What is malware?
    • How safe are password managers?
    • Are VPNs legal?
    • More resources
    • Strong password generator
    • Personal data leak checker
    • Antivirus software
    • Best VPN services
    • Password managers
    • Secure email providers
    • Best website builders
  • Follow
    • Twitter
    • Facebook
    • YouTube
    • Linkedin
    • Flipboard
    • Newsletter

© 2021 CyberNews - Latest tech news, product reviews, and analyses.

Our readers help us create quality content. If you purchase via links on our site, we may receive affiliate commissions. Learn more

Home » News » Tesla electrifies bitcoin with $1.5 billion bet, car payments pledge

Tesla electrifies bitcoin with $1.5 billion bet, car payments pledge

by Reuters
8 February 2021
in News
0
Tesla electrifies bitcoin with $1.5 billion bet, car payments pledge
29
SHARES

Tesla Inc said on Monday it had invested around $1.5 billion in bitcoin and expected to begin accepting payment for its cars and other products with it in the near future, prompting a more than 10% jump in the electronic currency.

Analysts said the move by one of the world’s best-known companies was liable to prove a game changer for bitcoin.

A well-known supporter of bitcoin, Chief Executive Officer Elon Musk has been weighing in regularly over the past week to a frenzy in retail investment, also driving up shares in meme-based digital currency dogecoin and shares of U.S. video game chain GameStop

Musk said a week ago that bitcoin was “on the verge” of being more widely accepted among investors and in December asked if it was possible to do large transactions in the currency.

“I think we will see an acceleration of companies looking to allocate to Bitcoin now that Tesla has made the first move,” said Eric Turner, vice president of market intelligence at cryptocurrency research and data firm Messari.

“One of the largest companies in the world now owns Bitcoin and by extension, every investor that owns Tesla (or even just an S&P 500 fund) has exposure to it as well.”

Bitcoin, which has set new record highs in recent months after a rollercoaster ride over the past decade, has also drawn support from major financial institutions this year. The world’s biggest money manager Blackrock recently changed a handful of investment mandates to allow some of its funds to invest in the currency.

Central banks remain sceptical of digital currencies, but analysts say the more real world uses appear for bitcoin, the more attractive it will prove as a long term store of value.

Tesla said in a filing the decision was part of its broad investment policy as a company and was aimed at diversifying and maximizing its returns on cash.

It said it had invested an aggregate $1.5 billion in bitcoin under the changed policy and could “acquire and hold digital assets from time to time or long-term”.

“He’s now putting his money (shareholders’) where his mouth is,” Markets.com analyst Neil Wilson said.

“But given his recent comments – and adding #Bitcoin to his Twitter bio on January 29th – it also raises a real question about possible market manipulation.”

Bitcoin surged more than 10% on Monday to a record high of $43,625 after Tesla’s disclosure.

Musk has also endorsed other crypto currencies in the recent past. He gave dogecoin, the coin based on a popular internet meme, a shoutout on Twitter last week sending its price to record highs over the weekend.

Late on Sunday, in a fresh endorsement for the cypto currency, Musk tweeted “Who let the Doge Out” — mimicking lines from the famous song by Baha Men from the year 2000.

The coin has also received attention from California rapper Snoop Dogg by putting up an image of a dog tagged “Snoop Doge” on his Twitter timeline.

Dogecoin was created largely as a satirical critique of the 2013 crypto frenzy and is not taken as seriously as bitcoin or ethereum. It almost doubled since Friday hitting a record $0.0871, according to data on blockchain and cryptocurrency website Coindesk.

(Reporting by Subrat Patnaik in Bengaluru and Thyagaraju Adinarayan and Anna Irrera in London; Editing by Bernard Orr, Patrick Graham and Saumyadeb Chakrabarty)

Share29TweetShareShare
Next Post
Frustration, worry, but little surprise as Clubhouse app is blocked in China

Frustration, worry, but little surprise as Clubhouse app is blocked in China

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

Editor's choice

COMb data leak - Mother of all breaches
News

COMB: largest breach of all time leaked online with 3.2 billion records

by Bernard Meyer
12 February 2021
37

It's being called the biggest breach of all time and the mother of all breaches: COMB, or the Compilation of...

Read more
14 million Amazon and eBay accounts sold online in new leak

14 million alleged Amazon and eBay account details sold online

17 February 2021
The hype around quantum computing: it’s not too early to get in

The hype around quantum computing: it’s not too early to get in

15 February 2021
Facebook phishing campaign that tricked nearly 450,000 users in Germany is now spreading in the UK

Facebook phishing campaign that tricked nearly 450,000 users in Germany is now spreading in the UK

15 February 2021
Cyberpunk 2077 maker CD Projekt Red has GWENT source code leaked after ransomware attack

Cyberpunk 2077 maker CD Projekt Red has GWENT source code leaked after ransomware attack

10 February 2021
  • Categories
    • News
    • Editorial
    • Security
    • Privacy
  • Reviews
    • Antivirus Software
    • Password Managers
    • Best VPN Services
    • Secure Email Providers
    • Website Builders
  • Tools
    • Password generator
    • Personal data leak checker
  • Engage
    • About Us
    • Send Us a Tip
    • Careers
  • Twitter
  • Facebook
  • YouTube
  • Linkedin
  • Flipboard
  • Newsletter
  • About Us
  • Contact
  • Send Us a Tip
  • Privacy Policy
  • Terms & Conditions
  • Vulnerability Disclosure

© 2021 CyberNews - Latest tech news, product reviews, and analyses.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Policy.

Home

News

Editorial

Security

Privacy

Resources

  • About Us
  • Contact
  • Careers
  • Send Us a Tip

© 2020 CyberNews – Latest tech news, product reviews, and analyses.

Subscribe for Security Tips and CyberNews Updates
Email address is required. Provided email address is not valid. You have been successfully subscribed to our newsletter!