Will Elon’s investment give booster dose to Bitcoin?
When Tech billionaire Elon Musk’s electric vehicle company Tesla invested $1.5 billion in Bitcoin, the bigger news that stormed social media was about Tesla planning to accept the cryptocurrency for payment purposes. ‘Use Bitcoin to buy a car’ sounds really cool!
While Elon’s investment will boost market confidence and institutional adoption of Bitcoin, the most ardent supporter of Bitcoin is Michael Saylor, CEO of US-based business intelligence and mobile software company MicroStrategy. Saylor refers to Bitcoin as ‘Digital Gold’ and his company is the largest investor in Bitcoins.
For those who are new to ‘Bitcoin’, we can define it as a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network. It relies on the blockchain technology, which is a shared database of transactions, with entries that must be confirmed and encrypted. Although Bitcoin has been the ‘talk of Internet’ since last year, most looked at it as an investment, rather than a form of payment.
Many mainstream brands have also allowed customers to make purchases with bitcoin through third-party processors. AT&T was the first major US company to provide cryptocurrency payment option to its customers. Microsoft recently started offering games and other apps for bitcoin. The virtual currency also made its way into the luxury market with bullion dealers and private jet plane sellers.
As economic uncertainty and market volatility has pushed Bitcoin as an alternate currency, if you haven’t cashed in on the crypto boom yet, you have another chance!