Leaders in crypto believe that Musk’s decision will influence other companies to do the same.
It is now the talk of the crypto world that Tesla, the car company run by Elon Musk, the crypto community’s spiritual king, has invested $1.5 billion in Bitcoin. Right after the news came out, Bitcoin sprang to its latest-all time high, around $44,000.
The crypto world is very happy with Musk’s latest investment. It signifies that after all, one of the largest companies in the world has not just recognized Bitcoin, but suitably invested 7.7% of its $19 billion cash holdings.
Although the firm’s SEC filing which revealed the investment did not go into further detail, Tesla undoubtedly views Bitcoin as an asset in which it is worth investing billions and presumably as an asset on the rise. While the crypto community is still chattering, several industry leaders understand their delight.
The CEO of CoinZoom, Todd Crosland, who considers Musk “probably the most visionary entrepreneur of our generation,” told us that the news “is a shot across the bow to corporations around the world and further bolsters the case for the mass adoption of digital assets globally.”
Also, Joel Edgerton, the COO of bitFlyer USA, believes that it is a “brilliant move by Elon,” and “it was inevitable.” Denis Vinokourov, the head of research at digital asset prime broker Bequant, also didn’t believe that the news was “entirely a surprise.”
Both point to Musk’s current outpouring of support for the coin. Musk lately came around to Bitcoin; last January 29, he changed his Twitter bio “#Bitcoin” and confirmed on Clubhouse that he is a “supporter of Bitcoin.”
Edgerton continued, “MicroStrategy already poked a hole in the dam and other corporations that are bursting through.”
Michael Saylor, the CEO of MicroStrategy, promotes Bitcoin, the asset in which his company holds a position worth more than $2.5 billion, he congratulated Musk for his excellent choice.
MicroStrategy, a US business intelligence company, began buying Bitcoin in August. In just a month, Saylor invested near $250 million. The CEO claimed that Bitcoin is a worthy successor to the dollar as a store of value; he believes that the dollar is falling and finance needs to be shaken up.
The month after that, MicroStrategy announced plans to buy even more; and in December, the company raised $650 million in debt securities. While it was finishing the raise, Saylor encouraged Musk to convert his balance sheet to Bitcoin.
The cryptocurrency strategist at LMAX Digital, Joel Kruger, also stated that Tesla’s Bitcoin purchase is a sign of greater things to come.
“We think this is just the start to a much wider adoption from household institutional names, finally ready to make the crossover into the crypto space,” he said.
Nathan Cox, Chief Investment Officer at Two Prime, said that it will “kickstart wide-scale adoption of Bitcoin among CFOs to take a serious look at digital assets as part of a robust corporate balance sheet.” It “confirms our thesis on corporate treasury management,” he said smugly.
Eden Dhaliwal, the Global Managing Director of the Conflux Network said it should not. “We shouldn’t fear institutional involvement in our industry,” he elaborated. “They need us just as much as we need them, and together, we can continue to pursue a truly open, global, and decentralized economy. This bold move by Tesla is a sign of the future just ahead.”
To put it simply, it’s a constant torrent of “I told you so’s” and “you ain’t seen nothing yet.”
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