LATOKEN Blog
Home » Tesla started accepting Bitcoin for purchases, will other companies follow

Tesla started accepting Bitcoin for purchases, will other companies follow

Tesla, owned by Elon Musk, a famous business magnate, has already started accepting Bitcoin to buy its cars. This happened just a few weeks after investing $ 1.5 billion in BTC.

Tesla announced last month that it changed its investment policy and began adding cryptocurrency and gold to its holding company. In particular, the company confirmed that the policy change included investments in Bitcoins for $ 1.5 billion.

The Bitcoin price rose after Tesla’s investments and Elon Musk’s tweets, and after this announcement, the price increased by another $ 1000. Elon Musk has already been criticized for going against his mission with this cryptocurrency investment due to the high energy consumption associated with mining, maintaining the blockchain, and executing transactions.

Bitcoin is currently the only digital asset that Tesla accepts to pay for its electric cars. It will not be possible to make purchases using other digital assets, including Bitcoin Cash and Bitcoin SV. The digital Bitcoin wallet is not yet designed to receive other digital assets, except for Bitcoin.

Why did Elon Musk make such a decision? This is a moot point. Wedbush analysts said they did not expect Tesla to start accepting Bitcoin payments until the second half of this year.

This event can be called significant for Tesla and the whole crypto world. Many expect less than 5% of transactions to be made through Bitcoins over the next 12-18 months, but it could rise over time as cryptocurrency adoption begins to grow in the coming years.

Tesla’s image as a green car company goes against the colossal carbon footprint of the Bitcoin network. Cambridge researchers found that it consumes more electricity annually than Argentina. A 2018 article in “Nature,” one of the most prestigious academic magazines globally, found that Bitcoin emissions alone could lead to global warming up to 2 degrees Celsius.

Despite its poor environmental record, Musk has embraced Bitcoin more than any other major CEO in the world. In the past few months, he has been tweeting about cryptocurrency, which has caused alarm in some corners of the world. He also tweeted about other coins such as Ether and Dogecoin.

Besides, it should be noted that Tesla’s share price is now directly linked to the value of Bitcoin.

Musk is now tied to Bitcoin in the eyes of Wall Street, and while Tesla made a billion in paper profits in its first month of owning digital gold, that may also come with additional risks.

What will other major companies do? Will they follow Musk? Is there a snag for buyers that they play his game and take the bloated asset?

These questions are also controversial. As all of us can see, the crypto world is extremely changeable and unpredictable. But no matter what, we can confidently inform you about the “crypto interest” of the following companies:

Visa

Payment giant Visa announced the release of its own system (API) to purchase cryptocurrencies, which banks will integrate. The product launch is scheduled for the end of 2021. Digital bank First Boulevard will probably become the first user of its service.

Mastercard

In 2021, Mastercard will start working with several cryptocurrencies as part of its international payment system. First of all, they are talking about supporting stablecoins. The company believes digital assets should provide stability.

Morgan Stanley

“Counterpoint Global,” a part of Morgan Stanley, is also about to invest in cryptocurrency. The investment division with assets under management for $ 150 billion is awaiting approval from management and regulators.

Bank of New York Mellon

The oldest USA and the world’s largest depository bank, Bank of New York Mellon, will store and conduct cryptocurrency transactions to benefit its clients. The company is developing a platform that will allow transactions with digital money in the same way as traditional assets.

Twitter

Twitter CEO Jack Dorsey and rapper Jay-Z are also going to transfer 500 Bitcoins to a fund that will expand the first cryptocurrency. The investors are already looking for developers. Their mission is to turn Bitcoin into the “web currency.”

Who else? Maybe Amazon?

Who will be next among the major firms to jump aboard this Bitcoin train? There are many speculations that it could be Amazon. When CEO Jeff Bezos announces his departure and crypto fanatic Andy Yassi takes his place, it could very well be possible.

It could be great for bitcoin; if Amazon starts accepting it, it will open the floodgates to everyone who puts off the cryptocurrency for the lack of places to spend it. If people can spend Bitcoin on Amazon, they can buy almost anything they want in one place. 

Are you going to invest in Bitcoin? Or maybe you think it’s better to rely on other cryptocurrencies? However, keep in mind that this can be easily done on the LATOKEN exchange page. Start trading Bitcoin (BTC) or other cryptocurrencies right away!