Elon Musk hit an all-time “Bitcoin slam dunk” a few days ago, channeling $1.5 billion in Bitcoin. The richest person on the planet at the moment is not shying away from dictating trends and from sending a strong signal, that Bitcoin is a currency worth investing in. Just a look at the best Bitcoin news sites out there shows us that cryptocurrency investors who have not sold their Bitcoins will stand to gain a lot during the next few months, even years.
Soon after the actual news of the purchase hit the market, the price of Bitcoin has surged dramatically, reaching an all-time $48k point. Compared to February 2019, when one Bitcoin was worth $3,800, its value has increased by over 12x within just two years. That’s some amazing news for any trader or investor who is mining bitcoins at the moment.
What Elon Musk did was simply unbelievable, especially as $1.5 billion actually represents 15% of Tesla’s value. Additionally, Elon also said that his company will start to accept Bitcoin as a form of payment. This means that Bitcoin owners can finally purchase their dream Tesla cars with actual Bitcoins.
What does this all mean?
In terms of bitcoin and cryptocurrency news, the thing that Elon Musk did is
something that will trigger a huge response from the market. Basically, his buying of Bitcoin will entice other CEOs on Wall Street to hop into the “bitcoin boat” and become trendsetters instead of laggers. Now, in terms of what’s going to happen with the price of the bitcoin, many bitcoin blog news owners are thinking that it will continue to skyrocket during the following weeks and months.
Of course, when talking about the bitcoin price, we’re probably going to see some peaks and valleys, which is something normal for any type of currency. However, there are other aspects related to this news that will have a tremendous impact on us.
First of all, Tesla’s stock price will continue to skyrocket, just like it has over the course of 2020. This year, the stock price is already up 2%, which equals around $15 billion in terms of market capitalization. At a deeper look, we can notice that Musk’s $1.5 billion purchase of bitcoins has already been recouped in the form of 10x value for his company.
Second, we can notice that Tesla’s main goal, which is to help humanity to move forward in a way that is sustainable, and to create a greener world, is accomplished in front of our eyes. We can conclude that Elon Musk would have never invested in bitcoin in the first place unless he would have known for sure that it was sustainable in some way, or could be sustainable in the future.
Today, the bitcoin bad news includes a lot of articles which all state that this concept of mining is a waste of energy. However, the naked truth is that those people who are criticizing bitcoin are not actually keeping up with the changes in technology. If they would, this group of people would probably know that most of bitcoin’s mining energy comes from renewable sources.
Third and last, the domino effect Elon Musk triggered by investing in bitcoin is going to become very real. Soon enough, we’re probably going to have a lot of Fortune 500 CEOs following in Elon’s footsteps, not because he is a great guy and a renowned mentor, but because all of these top CEOs have to face an identical problem, which is the Federal Reserve’s Printing Press.
What About the Federal Reserve Printing Dollars in 2020?
What these guys have done is printing huge amounts of dollars and injecting them into the economy. One of the most basic pieces of financial advice that you’ll ever get when researching for bitcoin cash price news is to have most of your cash invested and working for you, otherwise you’re going to lose your purchasing power.
For most of us, we’ll be able to save tens of thousands, maybe hundreds of thousands of dollars, over the course of our lifetime. However, for a corporation that has billions of dollars, losing one or two percent of purchasing power becomes a very real problem, because that represents tens of millions of dollars per year. This huge problem companies have can be tackled with a very simple solution, one that Elon Musk has just uncovered.
Converting cash reserves into bitcoin is a very smart thing to do, not just for large corporations, but also for regular people just like you and me. Elon Musk’s investment in bitcoin will probably make the price of bitcoin soar even higher in the near future, so people who want to secure their financial freedom with cryptocurrencies should hurry up.
Going More in Depth About this
Some of the best websites for bitcoin news out there are all pointing out the huge growth of bitcoin and its potential to reach a whopping $500,000 in the near future. Elon Musk declared in a press release that Tesla may or may not liquidate upon receipt. This can be translated into “we might hold on to bitcoin and continue to accumulate more as deemed necessary”.
In terms of legal implications, Elon’s action to invest in bitcoin involves strong phrases, such as “volatility of the market”, “growth of bitcoin price”, and “surge in investment”. However, he is also mindful of the cyber threat to bitcoins and the volatility of this cryptocurrency. Additionally, he states that “it is unclear how laws and regulations might change in the future”.
What’s interesting is, despite the fact that Elon acknowledges the possibility of the price of bitcoin going down, which may negatively affect Tesla’s cashflow, he also stresses the benefits his company would get if the price of this cryptocurrency would go up. One of the most major benefits is that he won’t have to pay any taxes for the profit his company makes out of bitcoin’s price surge until he actually sells some of those bitcoins.
Another interesting aspect about Elon Musk’s investment in bitcoin is the level of free marketing his company gets. If his company even whispers about getting into a new market or buying a new cryptocurrency, every major news outlet is hopping into the news thread. Additionally, their stock price is going up, and the social media channels are buzzing with the news.
For Tesla, all of this is free publicity, not to mention the mere act of buying bitcoin causing the actual price of this crypto asset to spike by 20%. That’s the brilliancy of what they are doing. Not only they are benefitting of free marketing, but they’re also getting paid for free publicity. However, this is only the tip of the iceberg. Things start getting even more interesting the more we dig deeper.
What Should Be Your Take on This?
This is not the first time in history that big companies have embraced bitcoin. For instance, Paypal announced back in October 2020 that they enabled their users to utilize bitcoin. After this announcement, PayPal users started logging into their accounts twice as often. Another example comes from Venmo, a famous money transfer app, which added crypto to their budgeting scheme. Third, Microstrategy, the reputable analytics company, has declared that they are keeping a significant amount of their cash reserves into Bitcoin.
These are just three of the tens of examples of big companies and hedge funds investing in bitcoin. What all of this means for you is that bitcoin is becoming a legit way of making and storing money. If a growing number of private and public companies will begin investing in bitcoin, this will drive the price up to over $500k. That’s more than 10x the value bitcoin has at the moment.
Now, what you can practically do is invest in bitcoin and other cryptocurrencies. To do that, you need to use a secure platform that can guarantee your investment and can enable you to fully leverage the benefits of crypto investing. One of the best platforms you can use for this is Coinbase.
Coinbase is the leading cryptocurrency investment platform in the United States, offering a wide range of investment opportunities to traders and cryptocurrency fans from all across the globe. This company has been founded back in 2012 and is licensed in the United States, being fully regulated for bitcoin investment.
In addition to bitcoin, this platform also allows you to trade Litecoin, Ethereum, and XRP, among others. The interface is super simple to use and the liquidity of the platform is extremely high. Additionally, new investors can gain access to certain perks and benefits, earning up to $40 worth of crypto.
Coinbase allows you to seamlessly create and manage your cryptocurrency portfolio, set up recurring buys, store your funds in high-security vaults, and gain the peace of mind that your crypto funds are protected by several insurance policies.
Open up your Coinbase account by following this link and hop into the bitcoin train that Elon Musk has just sped up this month.