As per the various reports, after investing in Bitcoin just a few weeks ago, Tesla has now begun to formally recognize Bitcoin as a payment method for its vehicles.
Tesla revealed last month that it had changed its investment strategy and would now be adding crypto currencies and gold to its portfolio.
As per the various reports, Tesla states that they revised thier0 investment strategy in January 2021 to give us more flexibility to diversify our portfolio and optimize returns on cash that is not needed to maintain sufficient operational liquidity. They may invest a portion of such cash in such alternative reserve assets, such as digital assets, gold bullion, gold exchange-traded funds, and other assets as defined in the future, as part of the policy, which was properly approved by our Board of Directors’ Audit Committee. Following that, they have invested $1.50 billion in bitcoin as part of this strategy, and we would acquire and retain digital assets on a short- or long-term basis.
Various reports states that Tesla also confirmed that, in addition to the huge investment in Bitcoin, it would like to begin accepting the crypto currency as a payment method in its business operations. Tesla began charging a small non-refundable order fee a few years ago to discourage people from messing with the company’s ordering process. Tesla is hoping that the switch would boost revenue by attracting some of the crypto currency millionaires to the company. However, due to the heavy energy usage associated with mining the cryptocurrency, managing the blockchain, and making transactions, the automaker has been chastised for going against its goal with this investment in Bitcoin.
Some claim, on the other end, that Bitcoin could serve as a vehicle for renewable energy investments, as green energy sources become more affordable than fossil fuel-powered sources.
Despite the global pandemic wreaking havoc on all major economies on the planet, the crypto currency market has continued to develop.
During this pandemic, several crypto companies have sprung up to meet the ever-increasing demand for Bitcoin and other crypto currencies. And, can be expected to grow more in the future.