Tesla has been tinkering with some of the most prominent cryptocurrencies on the market for months. What dangers does this practice entail?
In terms of fame, cryptocurrencies began to be of special interest to the general public during the second half of 2017. At that time, the prices of Bitcoin and other cryptocurrencies had a strong growth. December of that year, however, one of the main bear markets was experienced that have always accompanied this type of values. Tesla, after all that, decided to bet on investing more than a billion dollars.
According to what has been known, Tesla has flirted with 2 cryptocurrencies. Bitcoin, logically, has been the digital currency that more impact has had within the company. Although Tesla has been in the green for months, the latest push from the bears has caused the price to plummet. Even so, the electric car firm claims to continue to be in possession of this product. Now, who would expect new movements in this trend?
The incorporation of Dogecoin as a cryptocurrency in which Tesla has fixed itself does nothing more than establish a new connection between this type of virtual assets. They are also different projects, which goes to demonstrate the multiple applications of this way of understanding investing and conducting transactions. After the movements of the last year, are we facing a differential moment to believe in this alternative way of considering money?
Tesla, through these investment proposals, have allowed us to get used to the idea of how close cryptocurrencies are to the public. On this last occasion, the acquisition of the Dogecoin coin It will apparently allow you to buy some accessory products that Tesla offers in the market. It is not about cars, true, but it is about a project that aims to introduce this alternative form of payment.
Let’s see, therefore, what are the main movements that Tesla has had In this regard, why Tesla seeks to command success in integrating the crypto asset market into the financial system and, of course, to what extent the company will implement these alternative payment systems. And you, can you imagine buying the latest Tesla model using digital currency units?
Bitcoin as an investment and, of course, as a payment method
The investment by Tesla in this investment system has entailed, of course, a certain hypocrisy. The best example of this is shown by the pollution that is generated. While Tesla is promoting the commercialization of vehicles without polluting emissions, it is encouraging activities that are very harmful to the environment such as mining. This action involves millions of computers continuously operating to solve all kinds of keys in order to obtain rewards.
It all started during the first half of the year. After the announcement that allowed the price of Bitcoin to grow by a few thousand dollars, Tesla seemed that it would allow to pay part of the car in this currency. After a few days later, everything was ruined. The excuse? The pollution that is generated due to mining. This may seem too crazy, as this has been known for a long time. The incongruity, finally, had more prominence than ever.
Since then, Tesla hasn’t shown much interest in it. It is known that, apparently, the investment made at the time in Bitcoin is maintained. Just a few weeks ago, Elon Musk spoke again about the possible role of this digital currency in relation to their electric cars. He appears to have praised the improvements that have occurred in the use of clean energy to proceed with the validation of transactions.
Dogecoin, from meme currency has possible commercial viability
Merchandising is one of Tesla’s sources of income. Due to the high reputation of the brand, the truth is that there is an important community of users loyal to the firm’s products. Apparently, a pilot program that is expected to begin in the next few weeks, will allow users to purchase certain products by paying with this currency. It is, therefore, a very interesting option that can open up a new panorama in the market.
In terms of trading, Dogecoin has increased in value by more than 20% from such information. However, it should be noted that the so-called meme currency has not stopped sinking, with falls of up to 40% in months. The viability of the project could depend, to some extent, on the qualities of this project in the medium term.
Once again, it seems that Tesla and cryptocurrencies will continue in this process of continuous comings and goings. And for you, would the acquisition of a brand vehicle through this type of tokens inspire confidence? It seems likely that, finally, the company will accept this type of new invoice solutions as part of the payment.
Related topics: Motor
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