Although Tesla recently entered the cryptocurrency market, it has generated huge publicity around the ad. On February 8, the automaker surprised the cryptocurrency world by investing $ 1.5 billion in bitcoin (BTC), and also announcing that the company would soon consider accepting cryptocurrency payments. As a result of this news, the bitcoin price rose to $ 48,000, but later calmed down and settled in the $ 44,500 region.
As a consequence, it was also revealed that the aforementioned rally was largely driven by the whales, who took Tesla’s announcement as a buy signal. In this regard, according to data available on Binance, whales have allowed themselves “an unusually large volume of BTC purchases.”
Analysts believe that whenever a large listed company enters the digital asset space, the frenzy begins to create positive market sentiment around BTC. For example, Filbfilb, a pseudonym bitcoin trader, stated that over time, shareholders will have to force more and more companies to provide them with a certain level of exposure to cryptocurrencies.
What does Tesla mean to go into industry?
According to Hunter Merghart, head of Bitstamp’s U.S. cryptocurrency exchange division, he told Cointelegraph that while Square paved the way for everyone, Tesla will include Bitcoin on the balance sheet as a tipping point for the industry, adding:
“The risk of further adoption by both retailers and institutions has disappeared. This will ultimately lead to more positive price movements as new players, individuals and institutions take time to participate in funds and financial accounts. ”
A similar view is shared by Sam Tabar, former CEO of Bank of America Merrill Lynch and co-founder of Fluidity – the company behind P2P trading platform AirSwap – who believes this is the moment the crypto industry has been waiting for, that is, to get Bitcoin’s institutional seal of approval from S&P 500.
After examining the skeptics, Tabar also explained to Cointelegraph that people ridiculed Bitcoin and cryptocurrencies in general as a tool for drug dealers and other criminals. He added: “Then they might claim that Bitcoin uses a lot of energy, but if you compare Bitcoin’s energy consumption with all the power used in the traditional economy, you will be completely surprised.”
Finally, Ben Chu, the CEO of cryptocurrency exchange Bybit, told Cointelegraph that the bitcoin adopted by Tesla has cut operators’ risk bills for the company’s cashier, and that he now expects a small but steady number of adoptions, including corporate adoption. Multiethnic that will eventually grow to act like a round to big twists and turns.
In addition, he also believes that as Bitcoin continues to be accepted in the eyes of institutions and companies, the crypto community may be more motivated than ever to innovate in this new space. For example, Mirgaard believes that in the near future we will see more multinational companies exploring Bitcoin and eventually even other cryptocurrencies through loans / lending or faster cross-border payments through stablecoins.
Is more crypto-diversity inevitable?
While the latest moves by MicroStrategy, Square, and PayPal have helped raise the required amount of cryptocurrencies, it’s undeniable that it was Tesla’s acquisition that has garnered the most attention in the industry in its decade. For proof, one only needs to look at the various mainstream media and the extent to which each news platform has covered the story since the outbreak.
Stephen Stoneberg, CEO of Bittrex Global Exchange, told Cointelegraph that he believes the announcement has and will continue to raise awareness about bitcoin and the cryptocurrency market in general, adding:
“Other US multinationals may consider diversifying their asset base with other digital currencies that have not increased in value in the same way as Bitcoin in recent months. For a long time, investors have had negative yield bonds and overvalued stocks. Now digital assets provide opportunity. Real diversification. ”
Paolo Arduino, CTO of digital real estate trading platform Bitfinex, shares the same expectations, telling Cointelegraph that Tesla’s announcement could take cryptocurrency to the next level and that it could be an industry “comeback” from overseas. “I expect bitcoin to be added to the balance sheets of many companies because quality as a form of digital gold is becoming more and more relevant,” he continued.
Finally, Apple is a name that has recently come up in connection with Bitcoin, especially as the multinational company has a unique position as a leader in consumer technology.