Tesla has invested about $ 1.5 billion in bitcoin and expects to start accepting payments for its cars and other products with it in the near future, raising more than 10 percent in electronic currency has leaped.
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| Bitcoin price hits record after Tesla invest in it |
Analysts said that one of the world's best-known companies was responsible for being a game changer for bitcoin.
A well-known supporter of bitcoin, chief executive Elon Musk has been regularly trying in retail investment for the past week, also having shares in the digital currency Dogecoin and shares of the US video game chain.
Musk said a week ago that bitcoin is on the verge of becoming more widely accepted among investors and asked in December whether it was possible to conduct large transactions in the currency.
Eric Turner, vice president of market intelligence at cryptocurrency research and data firm Mesari, said, "I think we will see the acceleration of companies allocating bitcoins that Tesla has made the first step."
"One of the world's largest companies now owns bitcoin and by extension, every investor who owns Tesla (or even just has a S&P 500 fund) also has exposure to it."
Bitcoin has set new record highs in recent months following a rollercoaster ride over the past decade, also receiving support from major financial institutions this year. Blackrock, the world's largest wealth manager, recently changed a handful of investment mandates to allow some of its funds to be invested in currency.
Central banks remain skeptical of digital currencies, but analysts say that the more real-world usage Bitcoin has, the more attractive it will prove to be as long-term reserves of value.
Tesla said the decision in the filing was part of its broader investment policy as a company and aimed to diversify and maximize its returns on cash.
It said that it had invested a total of $ 1.5 billion in bitcoin under the changed policy and "could acquire digital assets either periodically or in the long term".
Markets analyst Neil Wilson said, "He is now putting his money (shareholder) where his mouth is."
"But looking at his recent comments - and adding #bitcoin to his Twitter bio on January 29 - it also raises a real question about potential market manipulation."
Bitcoin rose more than 10 percent to a record high of $ 43,625 on Monday after Tesla's disclosures.
Musk has also supported other crypto currency Dogrcoin in recent times. He gave Dogcoin, a popular digital coin, an outcry on Twitter last week that sent its price to record highs on weekends.
Late on Sunday, in a new ad for Cyber Mudra, Musk tweeted "Who Doge Out" - an imitation of the lines of Baha Men 's famous song from the year 2000.
Sikka has also attracted attention from California rapper Snoop Dogg by putting an image of a dog named "Snoop Dog" on his Twitter timeline.
Dogecoin was created as a sarcastic critique of the 2013 crypto mania and is not taken as seriously as Bitcoin or Ethereum. According to data on the blockchain and cryptocurrency website Coindesk, this is almost double since Friday.
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