Elon Musk launched a pair of potential gamechanging shifts for bitcoin on Monday, promising Tesla Inc would take payment for its electric vehicles in the currency soon and revealing it had already bought $1.5 billion worth of it.
The announcements, buried deep in Tesla’s 2020 annual report, drove a 10 per cent surge in the world’s best-known and most held cryptocurrency and followed several social media posts by Musk that have sent the currency and other assets higher in recent weeks.
Analysts said it could help accelerate a move for bitcoin move towards the mainstream that has seen both Paypal, also co-founded by Musk, and huge global money manager BlackRock move to accept the currency.
‘I think we will see an acceleration of companies looking to allocate to Bitcoin now that Tesla has made the first move,’ said Eric Turner, vice president of market intelligence at cryptocurrency research and data firm Messari.
‘One of the largest companies in the world now owns Bitcoin and by extension, every investor that owns Tesla (or even just an S&P 500 fund) has exposure to it as well.’