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HomeBitcoinYou can now buy a Tesla car with cryptocurrency Bitcoin, says Elon Musk

You can now buy a Tesla car with cryptocurrency Bitcoin, says Elon Musk

You can now buy a Tesla car with cryptocurrency Bitcoin, says Elon Musk
epa08951352 A bitcoin reflects in front of a monitor showing a stock barometer in Duesseldorf, Germany, 20 January 2021. Cryptocurrency Bitcoin has experienced drastic ups and downs in recent weeks and months. At times, its price has increased more than fivefold over the course of the year. The price has risen particularly sharply, by more than 100 per cent since mid-December 2020. However, Internet currencies, of which there are now thousands, are known for their extreme price fluctuations. Regulators, such as the German Bafin recently, therefore repeatedly warn against investing in cryptocurrencies. Recently, the president of the European Central Bank, Christine Lagarde, called for stricter regulation of Bitcoin. EPA/SASCHA STEINBACH
Musk made the announcement in a surprise tweet (Photo: Getty)

You can now buy a Tesla car with cryptocurrency Bitcoin, according to CEO Elon Musk.

Tesla is the first major car company to accept the digital currency, after company chief Musk expressed public support for the currency multiple times.

In February, Tesla bough £1.1 billion worth of Bitcoin, which saw Bitcoin’s price shoot to a record high. Musk’s unexpected announcement in a tweet today will likely have an effect on the price of Bitcoin, which rapidly fluctuates from day to day.

In the tweet, Musk added that Tesla would be using its own internal software to accept the Bitcoin payments and ‘operate Bitcoin nodes directly’.

In further support for the currency, Musk said that the received Bitcoin would be kept as Bitcoin, and not converted into a currency associated with any single country.

Elon Musk, founder of SpaceX and chief executive officer of Tesla Inc., arrives at the Axel Springer Award ceremony in Berlin, Germany, on Tuesday, Dec. 1, 2020. Tesla Inc.??will be added to the S&P 500 Index in one shot on Dec. 21, a move that will ripple through the entire market as money managers adjust their portfolios to make room for shares of the $538 billion company. Photographer: Liesa Johannssen-Koppitz/Bloomberg via Getty Images
Musk has been a personal champion of the cryptocurrency (Photo: Getty)

While the move has only announced for the US for now, where buyers can secure a Tesla car with a $100 dollar equivalent in Bitcoin, the move will soon be rolled out to other countries in coming months, according to Musk.

Musk has been the poster boy for cryptocurrencies and, through Twitter, has been heavily backing bitcoin and the joke cryptocurrency dogecoin.

What is Bitcoin?

Bitcoin is a type of cryptocurrency, which is a virtual or digital currency – like an online version of cash.

It works without a central bank and is usually exchanged from person-to-person when it is sold or exchanged, without anyone working in-between to overlook the transaction.

Some people like the fact that Bitcoin is not controlled by the government or banks. It was first released in 2009 and its value has fluctuated over the last 12 years.

People can track their ownership of Bitcoin by using a cryptocurrency wallet, which is a digital way to exchange payments.

It is easy to track as details are stored in a ledger called blockchain, which is publicly accessible and it includes all confirmed transactions.

Why is Bitcoin surging in value?

When the global stock market wildly fluctuates in value it is said to be volatile.

For investors looking for a safe, reliable store of their money, this is not ideal – instead they look for more stable investments, like gold or government-backed bonds.

But recently, some investors have expanded their definition of a ‘safe haven’ to include cryptocurrencies, as they see them sheltered from stock market volatility.

The limited supply of bitcoin, which has an upper limit of 21 million (18.5 million bitcoin have already been ‘mined’), is attractive to some investors.

This scarcity, which the cryptocurrency shares with another ‘safe haven’ investment, gold, is said to protect from the inflationary dangers other investments are vulnerable to.

It also helps when the most valuable carmaker in the world demonstrates a gigantic show of support by investing heavily in it too.

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