Tesla buys RM6b in bitcoin, to accept as car payment

Good news, bitcoin miners and investors. Tesla has just announced that it bought US$1.5 billion (RM6 billion; roughly 8% of its reserves) in bitcoin, sending its value skyrocketing to new heights. The typically volatile cryptocurrency surged nearly 14% to a record high of US$43,625 (RM177,095) shortly after Tesla’s disclosure, Reuters reports.

At current prices, 0.8 bitcoins would be enough to buy an entry-level Tesla Model 3. And you could, because CEO Elon Musk said the company will soon be accepting cryptocurrency as a form of payment for its electric cars, making it the first automaker in the world to do so.

“We expect to 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,” the company said. However, it’s not yet known when Tesla will actually begin accepting bitcoin as payment.

Musk is a known and longtime supporter of cryptocurrencies and said that bitcoin is on the verge of getting broad acceptance. “I do think at this point bitcoin is a good thing. And, so, I am a supporter of bitcoin. Like I said, I was late to the party, but I am a supporter of bitcoin,” he said.

Since the announcement, analysts have said that other companies should look into accepting digital currencies as part of their business scheme. Mike Novogratz, founder of Galaxy Digital said “it’s what customers want, it’s where the world is moving.” Some see this as a step towards legitimising cryptocurrency as a mainstream currency, and it’s only a matter of time before other players follow suit.

The post Tesla buys RM6b in bitcoin, to accept as car payment appeared first on Paul Tan's Automotive News.

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