After expressing his support for Dogecoin on the social network recently, Tesla founder and CEO Elon Musk has been drawing worldwide attention for investing a high amount of money in Bitcoin. According to the current cryptocurrency news, Tesla has invested US$1.5 billion in total in this widely promising currency.
Elon Musk also stated on his twitter that the Tesla company hopes to accept BTC as a payment for the products and services in future. The prediction is, if legislation permits, that customers will be able to use Bitcoin to partially pay for their purchases of certain Tesla cars.
But what does this mean for investors? See our review below:
Bitcoin Price Increase in the Short Term
As many know, after the cryptocurrency news today, Bitcoin was on the rise again and reached US$ 44,000. It’s reasonable to believe that Bitcoin will continue to rise in the near term although small fixes could happen. That’s because Elon Musk’s influence is great. His action always draws everyone’s attention, and this time Tesla’s investment is like free publicity for Bitcoin. More people will quickly be attracted to know Bitcoin, believe in the currency, and finally invest in it. The investment of these new investors will be a driving force for the Bitcoin price to rise further these days.
The Development of the Cryptocurrency Industry
At first, when the Bitcoin project was launched, many people were apprehensive about its reliability thinking it might be a scam. So we’ve been witnessing the investment of big companies like Grayscale and Tesla in the digital asset.
Large institutions invest in Bitcoin because they have seen its value and potential. Increasing confidence in Bitcoin has the potential to spur development across the industry, with many projects either based on BTC or built to solve some existing Bitcoin issues.