Why Is Tesla Supporting Bitcoin?
Ever since cryptocurrency has taken flight, bitcoin has made its presence known. Being one of the first cryptocurrencies to have been available, Bitcoin is a leading cryptocurrency that has achieved incredible success in a span of 10 years. It has recently made the headlines due to its bullish cycle, but it also got raving support from brands like MasterCard and Tesla.
What’s more, many other significant Fortune 500 companies have jumped on the bandwagon and are investing in BTC. If you’re wondering what makes Bitcoin unique and why it has attracted attention from prominent companies, we have compiled a list of top factors that helped Bitcoin enjoy support from investors like Tesla.
Bitcoin’s Bull Market Phase
Bitcoin entered a bull market phase in 2023, after the Bitcoin halving in May. The event is highly anticipated as it is expected to minimize the supply of BTC, which generally results in a higher price. The price was consistently increasing over the course of 2023, and each month has boosted the value even further.
The first record was surpassed in November when the price of this cryptocurrency surpassed $18,000. Moreover, the price of Bitcoin climbed to $20,000 in December 2023. This is the most extended cycle in Bitcoin’s history, and given the fact its price plateaued in a range of $8,000-$10,000, this bull run has made a lot of investors very rich. What followed in 2023 was a sharp increase in the price of Bitcoin, which doubled to $40,000. In February 2023, it has topped off $50,000.
Moreover, because of this constant bull market phase, the future of this cryptocurrency has also been expected to be brighter than ever. It has gained more stability with every passing year. Therefore, it has become a material of interest for several top companies.
As the price of Bitcoin surged considerably, investors wanted to add Bitcoin to their portfolios. Elon Musk, the CEO of Tesla, has invested $1.5 billion from the company’s money on BTC. This was an unprecedented move that actually pushed the price of Bitcoin even further.
Furthermore, Elon Musk has always been interested in the concept behind cryptocurrency, and it is a known fact that he is a huge supporter. Now that bitcoin is at its highest point than ever, and he didn’t fail to seize the opportunity to make it even more significant.
Another reason why Bitcoin is popular is that it’s very easy to invest in BTC. You can sign up on a reliable online trading site like bitcoincircuit.biz, which uses top-notch AI technology which allows it to adjust to dynamic market conditions quickly.
Another perk of trading at an automated platform is that it is widely accessible to beginners that aren’t still familiarized with BTC trading.
The main factor that makes Bitcoin very appealing to investors is that this is a decentralized cryptocurrency that is based on a peer-to-peer blockchain network which is also decentralized. It is not controlled by any institution.
But what also makes Bitcoin even more remarkable is that its founder Satoshi Nakamoto disappeared after Bitcoin has gained some popularity in 2011 which means that even the founder doesn’t have any impact on the way the network operates.
Otherwise, because this is a decentralized cryptocurrency and its supply and demand are not controlled, this also means that it is immune to most events that affect fiat currencies like financial crisis, global political events, and other problems that impact the value of traditional currencies.
Thanks to decentralization, bitcoin transactions are undoubtedly the securest of all. The transactions are fast and without any hidden cost. Thus, the ease of transaction makes it a convenient option for buyers and payers.
A Rare Asset
There is no doubt that bitcoin technology is truly one of a kind. The asses are rare, and those who have invested in it have always gained some kind of benefit. Also, because there is not a central institution that controls the supply of BTC, there aren’t fiscal or monetary policies that can alter the number of BTC. In fact, from the start, Satoshi Nakamoto has capped the supply of BTC at 21 million and has decided that after this last Bitcoin is mined, there won’t be any new BTC. Thus, this move is quite smart and creates a value for the bitcoin that is unmatched. Because you won’t find new bitcoins to mine, people, especially those who have a way of getting rare things, consider it an opportunity they simply can’t miss.
This is a crucial decision of the creator because immediately, it makes it are very scarce asses, especially as another event bitcoin halving decreases the available supply of BTC. In other words, it slows down the number of new BTC that are created in the network, as opposed to the demand, which is growing at a higher rate. This is why the price of Bitcoin is rising and will probably continue to grow in the future.
It is the future
Lastly, bitcoin is the future. It is said that soon cryptocurrency will takeover paper currency completely. So, for investors and huge companies like Tesla, it is a step into the future. They have initiated the change and therefore have welcomed the new era of cryptocurrency to be used in the same way as paper currency. Previously bitcoins were mostly used for making business transactions, but it is for the first time in a while that people will be able to make payments for buying a commodity like cars for their personal use. It is convenient and a step into the future.
To conclude, Tesla’s decision to support bitcoins has several advantages for the company and the future of bitcoin as well. If this cryptocurrency keeps its pace steadily, which it will, there are high chances that it is going to stay a thing of high interest for top investors and powerful counties all across the world.