In one of the most bullish signals for Bitcoin, Tesla has announced that it would be opening up the use of Bitcoin as a payment option for its U.S clients. This was announced by the CEO, Elon Musk, on Twitter. This means that customers of the electric car maker can now buy the cars by paying on the company’s official website using Bitcoin directly. Musk added that Bitcoin-based payments to the rest of the world would start at some point in the year.
You can now buy a Tesla with Bitcoin
— Elon Musk (@elonmusk) March 24, 2021
This is a huge move for the company and comes a month after it invested $1.5 billion into Bitcoin, marking a huge leap for Bitcoin as a payment method. Even more interesting is Elon Musk’s announcement that the company would not be converting the crypto asset received as payment into fiat currency.
Tesla would be delinking itself from third-party BTC payment services, by setting up its own Bitcoin node. Musk stated that they are using open-source software for BTC transactions and that all of the holdings in its node wallet will not be turned into cash.
This sets up both the company and Bitcoin for some interesting times ahead. For Tesla, investors will be watching to see how it will deal with the volatility of the crypto asset. If its share price becomes correlated to that of Bitcoin, then it could be up for some wild price swings.
On the other hand, Bitcoin just gained massive validation as a payment method. This could be the first step in mainstream adoption and could see it get adopted by other companies as an additional payment method.