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Elon effect: Bitcoin continues to soar

The biggest news of this week, Tesla invested $1.2B in Bitcoin, causing a 15% jump rate and prices exceeding $44,000 for the first time in a long time.

Tesla, announcing on Monday, February 8th, that they bought these Bitcoins after their update in its company investment policy to invest in digital assets, a filing with the Securities Exchange Commission showed. Tesla also said it would begin taking the digital token as a form of payment for its electric cars making them the first significant auto manufacturer to do so.

The moves bring up questions around the CEO Elon Musk‘s recent conduct on Twitter, where he has been credited at expanding the costs of cryptographic forms of money like Bitcoin and Dogecoin by posting positive messages that have urged more individuals to purchase the advanced monetary standards.

“We updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity,” the statement filed by Tesla showed.

The fact that one of the world’s leading companies placed their trust behind Bitcoin is a huge sign of support for the cryptocurrency, which has previously been criticized by lawmakers for easing money laundering and fraud. This also indicates the vastness of the near future acceptance of Bitcoin and cryptocurrencies alike.

Due to this bold step by Tesla, many companies should follow suit. Theories by specialists suggest that by the end of 2020, 50+ companies from S&P 500 will invest in Bitcoin and other cryptocurrencies.

Its only time before the usage of decentralized finance becomes 100% adopted and it becoming a mainstream asset.

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