US citizens are now able to buy Tesla cars with Bitcoin. Tesla CEO Elon Musk made the announcement on Tuesday, adding that buyers from other countries will be able to do so later this year.
Initially, Musk revealed in February that the company would accept Bitcoin payments. At the same time, Tesla, the world’s largest carmaker by market cap, bought $1.5 billion in Bitcoin to diversify its balance.
Tesla’s Bitcoin Payment Process Is Already Set
Bitcoin has finally received a major boost for its status as means of payment, as Tesla is now accepting the cryptocurrency from US buyers. Musk tweeted:
You can now buy a Tesla with Bitcoin
— Elon Musk (@elonmusk) March 24, 2021
The company set a dedicated page that answers the most important questions related to the Bitcoin payment process.
Buyers are advised to send the required amount in a single transaction rather than in multiple payments. Tesla confirmed that Bitcoin is the only cryptocurrency it accepts and warned that the funds sent to a different address result in a loss.
Tesla produces electric vehicles, which cost between about $38,000 and $124,000 without taxes.
Musk specified that the company was using “internal” and “open source software” to process the payments.
It’s worth mentioning that the Bitcoin received from payments will not be converted to fiat. Thus, Tesla’s crypto balance might further increase based on these payment operations alone.
Bitcoin has been considered a store of value (SOV) rather than a means of payment. The largest cryptocurrency by market cap has consolidated its SOV status during the pandemic, as national currencies have devalued due to the quantitative easing and stimulus measures implemented by central bankers and governments worldwide. Bitcoin’s relevance as a payment method has been suffering because of extreme volatility, but the move made by Tesla could encourage other major companies and support the cryptocurrency’s position as a means of exchange.
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See all Bitcoin forecastsBitcoin Surges 5% on Tesla News
Shortly after Musk’s tweet, the price of Bitcoin spiked from about $54,000 to over $57,000 at the time of writing. The move from Tesla adds to the bullish stance after the cryptocurrency lost some ground as a result of the comments made by Fed chief Jerome Powell, who said that Bitcoin was a risky investment.
However, the share price of Tesla is flashing red today.
Nevertheless, since April last year, both Bitcoin and Tesla have been among the best-performing assets across all markets, gaining 750% and 590%, respectively.
