Bitcoin Value Surges after the Hefty Investment by Elon Musk’s Tesla

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Bitcoin has broken new records as Tesla invests heftily in it. For two days straight, there were new records that were set by Bitcoin. As of now, the position of Bitcoin is 28% better than what it was for the previous week.

This move by Tesla has been taken as a sign by many. They believe that this investment could potentially point towards Bitcoin being the new financial asset.

The Elon Musk led company has bought $1.5 billion of Bitcoin currency taking the stocks of Bitcoin way beyond imagination.

Where mostly people are applauding this investment of moving into cryptocurrency, some people had their doubts. Tesla manufactures electric cars thereby supporting a green initiative, whereas Bitcoin is an energy intensive currency.

It requires heavy amounts of energy for a process called Bitcoin mining wherein the computer hardware needs energy to produce the cryptocurrency.

Tesla on the other hand has justified its investment saying that the move has primarily been made in order to maximise returns on the cash that has lying in the companies account and has not been put to any use.

It is also being expected that in the future, people will be allowed to use this very cryptocurrency to buy cars that have been manufactured by Tesla. This is what sparked the market and led people to believe that an investment in Bitcoin will prove to be beneficial.

The countries where the major surge in the market price was seen are: China, South Korea and Australia. Not only this, the computer chip making firms also saw an impetus alongside.

Central banks, however in all countries remain sceptical about cryptocurrency and are not ready to make a paradigm shift just as yet. Bitcoin is also a very volatile currency with no major intrinsic value according to most banks.

It would also be wrong to say that the banks are wholly against digital currency, they are just treading carefully and they do not want to rush into a decision. Banks would look at all aspects holistically before cryptocurrencies can be made a part of the regular finances.