Bitcoin is hitting new highs today as a 10-K filed by Tesla (NASDAQ:TSLA) revealed that the company had purchased $1.5 billion in Bitcoin and may be purchasing other digital assets in the future. Simultaneously, Tesla said they expect to commence accepting Bitcoin as a method of payment for its products. Elon Musk, Tesla founder and CEO, has long been engaged with the crypto sector frequently commenting on Bitcoin and other digital assets on Twitter. Musk, a true entrepreneur and never one to worry about sharing his opinion, has emerged as one of the most prominent advocates of cryptocurrency.
As the news filtered out that Tesla had purchased Bitcoin shares in the company moved higher but Bitcoin was the bigger beneficiary trading at almost $44,000 – a new all-time high.
Crowdfund Insider received a couple of comments on the Bitcoin acquisition by Tesla with crypto insiders seeing the news of growing validation of crypto.
Leah Jonas, Head of Partnerships at Celsius Network, shared the following thoughts about Tesla buying Bitcoin:
“Tesla’s investment into Bitcoin cements crypto into both history and the future as not only a fundamentally safe store of value but an asset with an infinite amount of applications yet to be discovered. I see this as the door opening wide for crypto companies with B2B services, like my companies, to put their products to the test and usher in the next wave of adoption in partnership with Tesla.”
The CEO of Celsius Network Alex Mashinsky, added:
“The richest person in the world just told you he does not believe in holding dollars as a long term store of value. Tesla buying BTC is another step on the road to mass adoption of Bitcoin as the main non-correlated store of value. We have heard from the smartest investors in the world and now we have heard from the richest people in the world, they all agree that having 5-10% of your net worth in BTC is a critical part of a well diversified portfolio. “
Jean-Michel Pailhon, Vice President Business Solutions at Ledger, called the news a seal of approval that crypto is a serious asset class:
“Tesla’s move further gives the industry validation and shows crypto’s resiliency as an asset class. The battle of custody and safeguarding these volatile assets will be the next thing to watch. Tesla could either pull it off with an in-house solution though they may suffer from inflexibility compared to other infrastructures.”
Of course, if Bitcoin continues to move higher as some pundits predict, Tesla and Musk will be lauded as brilliant investors. If Bitcoin moves lower, well then, not so much. The filing with the SEC acknowledges the volatility of Bitcoin, and digital assets in general, but if inflation starts to rear its ugly head Bitcoin holders could end up being big winners. Let’s wait and see.