Tesla is coming with an advance with one of the cryptocurrencies, bitcoin. The electronic vehicle automaker now accepts bitcoin for payments. Tesla’s advance brings a notable improvement in cryptocurrency’s use in commerce.
Tesla’s CEO, Elon Musk, is a renowned big fan of bitcoin. Despite the raging market and skyrocketing price, Tesla bought $1.5 billion worth of bitcoin last month. The news surely further boosted bitcoin’s valuation.
Tesla’s decision to invest in bitcoin also triggered more companies into jumping on the bandwagon. Among them are Mastercard Inc and Bank of New York Mellon Corp. According to both companies, it might be possible for bitcoin and other cryptocurrencies to be a part of investment portfolios.
Bitcoin payment option will be available soon, but for limited access
On Wednesday, Elon Musk also shared the news through a series of tweets starting with “You can now buy a Tesla with bitcoin”. The following tweets mentioned that Tesla will make the payment option available only in the United States. Customers residing outside the United States would need to wait until sometime later this year.
Additionally, Musk also explained that Tesla will retain the bitcoin as bitcoin, meaning the company will not convert the cryptocurrency into traditional currency. Upon the process, Tesla uses “internal & open source software”, his tweet reads.
In comparison to Tesla, AT&T Inc and Microsoft Corp utilize specialist payment processors for payment. This method allows the company to convert the cryptocurrency into dollars, which later is sent to the companies, Reuters notes.
Bitcoin’s usage in the major economy itself is still very limited. Its volatility, relatively expensive price and slow processing times contribute to bitcoin‘s narrow application in commercial use.
Following Tesla, talks about Uber and General Motors plan to accept cryptocurrency as payment circulate. While Uber remained silent, General Motors co said to be evaluating bitcoin as payment.
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