2021-03-24 17:25:09

Bitcoin price – live: Elon Musk says Tesla is selling cars for cryptocurrency

Elon Musk has announced that customers will be able to purchase a Tesla car using bitcoin.

In a series of tweets, the Tesla boss revealed that the electric car maker will be keeping the money received from customers as bitcoin, rather than storing it in a traditional currency like dollars.

“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,” he said in another tweet. “Pay by Bitcoin capability available outside US later this year.”

However, this news comes amid warnings that bitcoin’s record-breaking run will likely end in a massive crash – though nobody knows quite when. Bobby Lee, founder of cryptocurrency exchange BTCC, has predicted that the cryptocurrency will lose 90 per cent from its value, causing it to stagnate in a “crypto winter” that could last for years.


Losing a car’s worth of bitcoin?

Tesla has revealed more information about how bitcoin purchases will work, urging customers to be very careful about entering the exact address for Tesla’s digital wallet.

The firm’s terms and conditions warn in capital letters that it is “YOUR RESPONSIBILITY TO CONFIRM AND VERIFY” that the code is entered correctly – or risk losing an entire car’s worth of bitcoin.

You can read the full story here:

Anthony Cuthbertson24 March 2021 17:25


The CEO of Binance, one of the world’s largest cryptocurrency exchanges, has been reminded of his 2018 pledge to Elon Musk that he would buy a Tesla if the car company accepted bitcoin payments.

Posting to Twitter following Musk’s announcement, CZ suggested he might go ahead with it – despite not actually having a driving license.

Anthony Cuthbertson24 March 2021 14:39


Market analysts react to Tesla news

We’ve reached out to some market analysts and cryptocurrency experts to hear their views on Elon Musk’s latest announcement.

Here’s what they have to say:

Tesla’s move into bitcoin represents a growing recognition that there may be a means of exchange beyond traditional currencies. This follows a string of major companies integrating bitcoin into payments, including the likes of Mastercard, and we expect more to follow.

Like many, Tesla sense the imminent market turmoil on the horizon… However, bitcoin isn’t the only option, with Tesla themselves diversifying into gold as well. It’s the safest place to protect your wealth in these increasingly uncertain times.

Jai Bifulco, chief commercial officer at Kinesis

Tesla‘s decision to both accept payment for its cars in bitcoin and hold that bitcoin on its balance sheet rather than convert it to dollars will likely build more momentum for the cryptoasset.

Tesla and other companies are showing that crypto is here to stay, and its mainstream adoption is only going to increase. In terms of market dynamics, as more companies hold bitcoin on their balance sheet, so the finite supply is depleted even more, and this is likely to cause a supply-side squeeze and boost prices over the longer-term.

Simon Peters, analyst at eToro

Anthony Cuthbertson24 March 2021 13:32


More profit from bitcoin than cars?

Every payment made in bitcoin will remain in bitcoin, adding to Tesla’s already considerable cryptocurrency holdings.

The firm announced a $1.5 billion investment announced in February, though it is understood the purchase took place through Coinbase at some point in January. At the time, bitcoin was worth around $30,000 and $40,000, and is currently worth $57,000.

That means Tesla has already made anywhere between $630 million and $1.35bn from its investment.

According to some estimates, this puts Tesla on a trajectory to make more from bitcoin that from the profits it makes from selling cars.

Anthony Cuthbertson24 March 2021 12:30


The bitcoin payment button is live on Tesla’s website in the US.

Elon Musk said today that customers outside the US will be able to pay with bitcoin “later this year”.


Anthony Cuthbertson24 March 2021 11:57


As a pioneer in electric vehicles, Tesla’s green credentials have been called into question by some crypto-cynics and environmentalists, who claim offering bitcoin payments could ultimately churn out more carbon into an already heavily-polluted atmosphere.

We’ve asked experts and analysed data to see how bad bitcoin is for the environment really.

You can read the piece here:

Anthony Cuthbertson24 March 2021 11:10


It’s been a few hours now since Elon Musk announced that Tesla will accept bitcoin payments, so how has the market reacted?


The cryptocurrency shot up by $2,500 immediately following Musk’s tweet, representing a jump of around 5 per cent.

When the Tesla boss first announced the plan to introduce bitcoin payments last month, the price eventually rose by 17 per cent in the space of a day, so more gains may be on their way.

Anthony Cuthbertson24 March 2021 10:32


Bitcoin’s price has risen by more than 1,000 per cent since last March, and market analysts believe it could keep climbing – at least in the short term.

The cryptocurrency is currently trading at around $56,000, with price predictions generally ranging from $100,000 to $300,000 by the end of the year.

What comes after bitcoin’s record-breaking price run is anyone’s guess, though industry insider Bobby Lee said this week that he believes it could lose up to 90 per cent of its value and enter a “crypto winter”.

Read the full story here:

Anthony Cuthbertson24 March 2021 10:13


In the early hours of the morning on the east coast, and the middle of the night for the west, Tesla CEO Elon Musk announced that payments for electric vehicles can now be taken in bitcoin.

In February, Tesla announced that it had invested $1.5bn into the cryptocurrency. The company said that it would “begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt.”

Adam Smith24 March 2021 09:30

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