Elon Musk’s Tesla Will Accept Bitcoin Payments For Its Electric Cars

Yerevan (CoinChapter.com) — Elon Musk, the CEO of the Tesla company has announced some exciting news for everyone in the cryptocurrency community.

One can now buy a genuine Tesla vehicle, using Bitcoin. As Mr. Musk stated on his Twitter page, Bitcoin paid for products sold by Tesla will not be converted to fiat money. For now, this move is possible only for purchases in the US. In his tweet, Mr. Musk also gave hope to the rest of the world, by opening a window and saying that Bitcoin purchases will be available to other countries later on this year.

Bitcoin Institutionalization

Tesla has previously bought $1.5 billion worth of Bitcoin, which, surely, will raise the currency even higher. 2020 and early 2021 shook the stock market pretty hard, increasing its volatility. But, despite that fact, Tesla is not the only heavy hitter that took interest in Bitcoin this year — a business-intelligence software company MicroStrategy has also invested more than $2 billion, only to see their investments doubling a few months later. 

The active interest of large companies surely inspires a rise in the BTC value and sparks the interest of future investors. Furthermore, Mr. Musk has also announced that all the BTC transactions will be executed using open-source software and via private nodes. In the BTC system, nodes are the computers that contribute to the blockchain and ‘keep track’ of the transaction. Excerpts:

“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.”

As Bitcoin has a tremendous carbon footprint due to the huge energy consumption necessary for mining it, it’s quite contrary to Tesla’s general policy of being eco-friendly. This contradiction raised some eyebrows, of course, but the partnership promises to be a strong one nonetheless.

BTC/USD price jumped more than 5 percent to breach above $57,000. Nevertheless, profit-taking sentiment against the uncertainty around a record $6 billion options expiry this Friday pared those gains. The cryptocurrency was trading below $53,000 on Thursday.

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