“You can now buy a Tesla with bitcoin”: Elon Musk takes another step in his (risky) bet on the cryptocurrency
Elon Musk has long demonstrated his interest in cryptocurrencies. Your messages and memes on Twitter in support of bitcoin and dogecoin son already famous and cause notable climbs of the value of these cryptocurrencies, and Tesla invested $ 1.5 billion in bitcoin in February 2021.
Now that support is consolidated with another movement in favor of the use of bitcoin as a means of payment. Elon musk has indicated on Twitter what It is now possible to buy a Tesla car with bitcoin.
A bet subject to bitcoin volatility
We are not likely to handle bitcoins for small short-term transactions: its design does not allow it. Even so, there are already movements that show that it can be accepted as a payment method in larger and less frequent transactions, such as those used to buy a car.
Elon Musk’s announcement shows that this payment method is also feasible when buying a Tesla car, and he wanted to give guarantees that this type of operation is safe because he says, Tesla is in charge of operating its own bitcoin nodes.
Tesla is using only internal & open source software & operates Bitcoin nodes directly.
Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency.
— Elon Musk (@elonmusk) March 24, 2021
The decision is certainly risky, especially when the value of bitcoin is tremendously volatile. It is true that it has been going up for months and it does not stop achieving records, but buying a Tesla with bitcoin has the same advantages and disadvantages as investing in bitcoin and other cryptocurrencies right now: it can be very cheap in the long run (if the value of bitcoin keeps going up) but also very expensive if the cryptocurrency ends up going down.
It is the same problem that Tesla faces. Elon Musk claims that the bitcoins used to pay for these cars will not be converted into fiat money (dollars, for example), but will instead be stored as bitcoins in Tesla wallets. If those bitcoins end up going down in value, the economic resources of the company will also be exposed.
The movement is therefore singular, and it now remains to be seen whether drag other companies and markets to accept payments with bitcoin and other cryptocurrencies in the future. Buying a Tesla with bitcoin is therefore already possible in the United States, and Musk has indicated that It will also be possible to pay a Tesla outside the United States in bitcoin before the end of the year.