Elon Musk CEO of Tesla
Elon Musk, the world’s second richest man and CEO of Tesla (NASDAQ: TSLA), announced Tuesday that people can now buy the EV cars in the US with Bitcoin. The announcement comes a month after the company bought $ 1.5 billion worth of Bitcoin.
Musk tweeted, “You can now buy a Tesla with Bitcoin.” Bitcoin is a decentralized cryptocurrency and not tied to banks. The incomprehensible digital token is traded via blockchain instead of the mainstream financial system. Since last year, Bitcoin has risen from $ 17,000 to an all-time high of $ 60,000, turning ordinary people into millionaires overnight.
You can now buy a Tesla with Bitcoin
– Elon Musk (@elonmusk) March 24, 2021
Tesla’s move is the first of its kind. Last month, the Bank of New York and MasterCard announced that they would be accepting the digital currency. However, the decision to allow vehicles to be purchased in the cryptocurrency gives Bitcoin more trustworthiness compared to other altcoins.
Tesla sets its own bitcoin refund policy
According to a support page on Tesla’s website, customers can use Bitcoin to buy a car. Meanwhile, shoppers outside the US could use bitcoin to pay for a bitcoin car with bitcoin “later this year,” Musk said.
Musk said Tesla uses “in-house” and “open source software”. The billionaire and CEO of SpaceX concluded that the company “operates Bitcoin nodes directly”. Installed nodes on a Bitcoin network verify transactions and avoid double crypto spending. The electric automaker’s cars cost between $ 38,000 and $ 124,000.
Tesla’s refund policy warned people that returning electric cars and getting refunds give them two options. Buyers can receive a refund in either Bitcoin or US dollars. The company added that it reserves the right to repay customers the exact price Bitcoin is worth at the time the deal is closed.
As a result, Tesla will benefit from the volatility and rise in the price of Bitcoin in both digital currency and fiat currency.
Wedbush analyst Daniel Ives, mentioned in a research report on Wednesday, didn’t expect his firm to see Tesla accept bitcoin payments until the second half of this year.
“This is a defining moment for Tesla and the crypto world as Musk is now severing the red ribbon for bitcoin transactions within the broader Tesla ecosystem,” said Ives. “We estimate that less than 5% of transactions will be processed through Bitcoin in the next 12 to 18 months. However, this could increase over time as the adoption of crypto increases in the years to come.”