Tech giant Tesla announced this previous week that it has recently bought approximately €1.2 billion worth of bitcoin and that it will soon start accepting it as payment. Tesla and Elon Musk specifically have been known for pushing unconventional boundaries for many years, such as by widely popularizing the electric car market, starting one of the world’s biggest digital payment companies PayPal, and has aspirations for one day colonizing Mars. So it should come as no surprise that he is willing to give cryptocurrency a fair chance, although it’s understandable with just how volatile Bitcoin has been that it may not be reliable enough as a currency as it is a potential asset. Here are some ways this decision can end up making a large impact in the near future.
One of the most obvious implications of this decision is that it will only accelerate the trend to not only widely accepted cryptocurrencies, but a society that is gradually parting ways with physical cash. With the ability to pay in more and more places with services such as Apple and Android Pay, the way we pay for products and services in the near future is going to look very different. By making plans to accept Bitcoin, this will slowly force more companies to do the same to stay competitive by offering consumers more options to pay, as people are showing increased interest in using Bitcoin as actual currency.
Not only does this decision tell consumers that crypto is soon to be a widely accepted payment method and that Tesla is listening to what consumers want in the future, but this will also be a worthwhile investing opportunity. Up to this point Bitcoin has yet to be accepted in many places because it’s not viewed as a stable currency; since so many people are invested in it and it’s valuation seems to rise and drop so dramatically pretty frequently. But this can also come with concern as Musk himself has been seen to have a significant impact on the price of cryptos including Bitcoin and, what’s widely seen as a meme, Dogecoin, through his Twitter activity. This may appear to some as dangerous since he can seemingly influence the decisions of many people to either buy or sell these currencies which he now has a ton of money invested in himself.
As a constant visionary, it’s no doubt that this move to buy and ultimately accept cryptocurrencies as actual payment could be a wise decision as once again Musk is proving he is one step ahead of the curve. Yet there is still reason to be skeptical of this extremely volatile and new method of payment in the near future.