Tesla’s decision to invest in Bitcoin is going to have a widespread impact on other corporate institutions as they also might begin to take interest in the crypto industry, this statement was made by Wedbush Securities, a Los Angeles-based private investment firm.
According to the firm, the entrance of the electric carmaker is a “game-changer” for the crypto industry and blockchain technology. This, they believe, would pave the way for the entrance of more corporate institutions into the field. Wedbush, however, highlighted that due to its current volatility and issues with regulation, less than 5% of the institutions would adopt the asset in the next 12 to 18 months.
Wedbush went on to add that institutions adopting the asset would move “markedly higher as more regulation and acceptance of the cryptocurrency takes hold in the future.” The investment firm also noted that the price surge of BTC is an indication that industry is growing saying that “the trend of transactions, bitcoin investments, and blockchain driven initiatives could surge over the coming years as this bitcoin mania is not a fad in our opinion, but rather the start of a new age on the digital currency front.”
Tesla’s Adoption of BTC Bodes Well for PayPal and Square
Wedbush has admitted that the adoption of BTC by the carmaker could bode well for payment processing companies like PayPal and Square. According to the firm, since these companies allow consumers to buy, hold, and sell cryptocurrencies, it could result in a “paradigm changing move for the use of Bitcoin from a transaction perspective.” Tesla has already hinted that it may accept the crypto asset has a form of payments for its cars one day.
It is also expected that the crypto-boom would lead to some sort of positives for financial institutions like MasterCard and Visa who are also actively working on how they can integrate crypto into their services.
In the previous week, we have witnessed Tesla investing $1.5 billion in the crypto industry and we have also witnessed other institutions like BNY Mellon coming into the picture. This has pushed the value of BTC over the $50,000 mark and has culminated in a new high of $51,600.