Crypto market buzzes after Tesla’s Bitcoin investment
By John Shepard
10:00, 10 February 2021
The cryptocurrency market is buzzing with excitement after the news this week that Tesla had invested $1.5bn in Bitcoin.
The EV maker decided to create a new investment policy that seeks to diversify a small portion of its cash away from the US dollar. The news has investors excited that other corporations will follow. Tesla also said it would soon start accepting the coin as payment for its cars.
Bitcoin hits new highs at $48,000
The Tesla news saw Bitcoin vault above the $40,000 level and the price has pulled back slightly from a high near $48,000.
Investors are also using the recent surge in the world’s largest cryptocurrency to invest in other projects in the sector. Ethereum saw a record high last month and has now moved to trade at $1,800. Another coin that’s been performing well has been Dogecoin, which saw recent gains after the meme coin was the subject of tweets by Tesla’s founder Elon Musk. The coin later saw further Twitter approval by rock legends Gene Simmons of Kiss and rapper Snoop Dogg. The coin started January at $0.0044 and has since soared to $0.073 for a gain of over 1500 per cent.
Other altcoins that have seen support from Bitcoin’s rally are Litecoin and Cardano (ADA). Cardano’s founder sees his project as being superior to Ethereum in the future, while the two are currently involved in upgrades to their blockchains.
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Will Apple follow Tesla into Bitcoin?
Analysts at RBC bank have suggested that Apple may follow Tesla’s lead by investing in Bitcoin. (RBC is the US retail arm of the Royal Bank of Canada.)
In an investment report, the company said: “When we think of the Apple Wallet, there is a clear opportunity in our view to create a buying and selling mechanism for cryptocurrencies. To be clear, we do not believe Apple needs to hold bitcoin as a balance sheet asset (although it would likely help – more on this later), but rather allow users to buy and sell crypto assets.”
The move by Apple would be another step in the direction of mass adoption in cryptocurrencies and maybe soon, consumers will be buying iPhones and Tesla cars with cryptocurrencies.
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