Bitcoin: Elon Musk’s company bought $ 1.5 billion of the cryptocurrency, which jumped 15% to reach a new record

Bitcoin: Elon Musk’s Company bought $1.5 billion of the Cryptocurrency, which jumped 15% to reach a New Record

Elon Musk, the richest businessman in the world, continues to lead the movements of financial markets. And this Monday he did so through an announcement made before the opening of the New York stock exchanges: Tesla, its flagship company, acquired $ 1.5 billion in Bitcoin, as reported to the US SEC (US Securities and Exchange Commission), the regulatory body.

Immediately after the announcement was made, the price of Bitcoin soared 15% in electronic business, to a new all-time high at $ 44,112. In the afternoon it cut the rise to 13%, just below $ 43.00. The virtual currency accumulates a profit of 50% so far in 2021.

The electric car maker also plans start accepting payments with this currency.

In the last twelve months, the value of a single unit of Bitcoin increased from less than $ 10,000 to more than $ 40,000. In addition to the interest of Tesla, companies like Square e IBM They are using blockchain, the technology behind cryptocurrency, to design and improve digital payment methods, making the most important “crypto” increasingly widespread.

The price of the digital asset soared above $ 43,000 after Tesla’s bet was known

The founder and largest shareholder of Tesla, the South African businessman Elon Musk, is a firm defender of the use of this type of asset, which aims to replace the conventional money printed by central banks.

“I know I am a bit late for this movement, but I strongly believe in Bitcoin“Elon Musk himself explained last week in an interview.

10 days ago, Musk already gave clues about this movement to change the description of your status on the social network Twitter, to include only the Bitcoin logo.

The announcement indicates that Tesla has the option to place cash funds in “certain alternative reserve assets” which include “digital assets, gold, gold funds that are traded in the markets and other specified assets going forward”.

The acceptance by Tesla for the sale of its products will help Bitcoin to retain both value and volume

Tesla’s acceptance of transactions denominated in Bitcoin may help the crypto emblem retain both its value and volume exchange, according to analysts.

The investment made in the last month converts Tesla in one of the largest companies with investments in Bitcoin and that allows payments through the digital asset created just twelve years ago.

Other large companies have shown their interest in Bitcoin and payment through virtual assets as part of their financial operations. In November PayPal opened its cryptocurrency platform to all consumers in the United States after a trial period restricted to certain investors.

In addition, Musk also contributed last week to the valuation of another virtual currency soaring, Dogecoin, after starting to joke on Twitter about it.

The Tesla boss’s tweets about certain companies and cryptocurrencies pushed their prices up in recent weeks. The actions of GameStop, Etsy and CD Project jumped after comments on his Twitter account about them.

In the world of cryptocurrencies, he put the tag “#bitcoin” in your bio from Twitter and sent the most popular cryptocurrency skyrocketing on Friday. Then he removed the tag.

Automaker Tesla also plans to start accepting payments with the cryptocurrency

Meanwhile, rival cryptocurrency Ethereum is also advancing at a record pace, as investors are buying it ahead of the launch of Ethereum futures on the Chicago Mercantile Exchange (CME). Ethereum surged 6%, above $ 1,700, a record high.

Cryptocurrencies are gaining traction among traditional investors. The euphoria boosted the total market value of all cryptocurrencies over 1 trillion dollars for the first time in early January.

Samuel Edwards
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