Elon Musk’s company has once again heated up digital money quotes. Experts explained why the news of the automaker adding a new payment option is a significant step for the entire crypto industry.
Few days ago Tesla added the ability to pay for its products in bitcoins. Now this method is available only for customers from the U.S., in other countries the company promises to introduce it later this year. The automaker has no plans to convert the cryptocurrency received as payment into fiat.
Against the backdrop of this announcement, bitcoin quotes began to rise sharply, rising to $57,200 at their peak. For a few hours, the asset rose in price by almost 7%.
The public company has officially announced that its products can now be bought for cryptocurrency. This is really significant news not only for the crypto market, but also for the whole society. This event is a significant step towards expanding the boundaries of cryptocurrency use. Cryptocurrencies are getting even closer, they are already part of everyday life.
Nikolay Klenov, a financial analyst at the investment company Raison Asset Management, also called this news a landmark event that should have a positive impact on the bitcoin exchange rate. However, in his opinion, the effect may be short-lived if Tesla is not followed by other major companies. The market should confirm that this is not just an eccentric move by Elon Musk.
“There is a possibility that in the short term, bitcoin will renew its historic high of $61,800 on this news. However, one cannot say for sure,” Klenov added.
Elon Musk is a cult figure, and his actions add confidence to investors. Tesla announced plans to add cryptocurrency payment options back in February. At that time, the company reported to the SEC that it had purchased $1.5 billion worth of bitcoins. Therefore, the current rise in quotations may be short-lived because nothing fundamentally new has happened.
The more companies will start to accept bitcoin as a means of payment, the more positive this will be for its exchange rate. At the same time, the main catalyst for the current price growth is the fact that the funds in the cryptocurrency will be saved in bitcoins and not converted into fiat currency.