Bitcoin value hits $48,000 as Tesla announces $1.5 billion BTC purchase and upcoming crypto payments
2020 was a great year for Bitcoin. Even though its value hit a low of just under $4,000 in March, it was all upward trend from then on. BTC managed to stabilize at $10,000, up until October when the first signs of a solid bull run started to materialize. By the end of the year, BTC had almost reached $30,000, and it continued to rise to just over $42,000 in the first week of 2021. After that historic high, the bull run seemed it might have lost the impetus, as the value dropped to around $30,000, but, thanks to Elon Musk’s latest developments with his Tesla company, BTC’s upward trend gets yet another big push, soaring to new highs once again.
As soon as Tesla announce that it is investing $1.5 billion in Bitcoin, the price spiked over $40,000, and it continued to rise when the car company revealed it would soon accept crypto currencies payments. BTC hit $48,000, and Musk’s moves essentially helped the value rise by almost 20% in one day. The price has dropped a bit in the meantime, as it now hovers at $46,000. A recent filing with the US Securities and Exchange Commission stipulates that Tesla is updating its investment policy, which now allows for a more diversified portfolio that includes “digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future”.
Its current rising values make Bitcoin look like a better alternative to gold when it comes to storing value. It might not really be a good candidate for a widely accepted currency, however, due to its slow transaction time. This is where Ethereum and other crypto currencies like Bitcoin Cash, Litecoin, Dogecoin etc. shine, as they have greater transaction potential, which can be used by credit card operators. Elon Musk is surely aware of this, since he recently helped hype up Dogecoin as “the people’s crypto,” leading to considerable value spikes for this crypto coin, as well. While Ethereum remains the more popular “liquid crypto currency,” other personalities like Kim Dotcom (founder of Megaupload) are now trying to present Bitcoin Cash as the more appropriate currency for day-to-day transactions.