Tesla and SpaceX founder Elon Musk just sent the cryptoverse into a meltdown by finally greenlighting the purchase of Tesla cars with Bitcoin:
“You can now buy a Tesla with Bitcoin.”
Within 45 mins, the tweet has already gotten >23,000 retweets and over 110,000 likes.
Tesla Won't Convert BTC To Fiat
The Tesla CEO also clarified that the Bitcoin used to purchase the cars will not be converted to Bitcoin but will instead be stored as BTC.
“Tesla is using only internal & open source software & operates Bitcoin nodes directly. Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency.”
It will be interesting to see how Tesla deals with this situation since the exchange between BTC and USD would have had capital gains tax implications.
Also, Musk stated that people outside the US will get to avail this service next year:
“Pay by Bitcoin capability available outside US later this year”
Tesla has also opened a Bitcoin support page on their website, giving a small primer on how to work with cryptocurrencies. Here are some of the questions asked in the section – "How do I pay with Bitcoin?" and "How long does it take to process my Bitcoin payment?"
Reactions From Twitter
“Tesla has officially launched bitcoin transactions. Earlier, Tesla announced the purchase of $1.5 billion in Bitcoin. Currently, transactions outside the U.S. and other currencies are not supported.”
“Ok the Bitcoin logo on the Tesla website looks amazing. Mainstream adoption here we come. $BTC”
"Current value of $1000 invested a year ago in
S&P 500 $1,761
10-year US Treasury $953"
“Autopilot is now on the blockchain. HODL the wheel.”
Tesla’s History With Bitcoin
On February 8, 2021, Carl Quintanilla from CNBC broke the news that Tesla had purchased $1.5 billion worth of BTC.
“TESLA 10-K: ".. we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future .."
The market reacted to this news back then, regaining the $40,000 psychological level.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.