Tesla Enters Bitcoin Market, But Some Dealers Are Years Ahead Of Elon Musk

Automologist MAC brings us the latest on what our favourite bad boy of the automotive world has been up to. 

So if you were not paying attention at the start of the week, Tesla, the darling of the green energy revolution, announced that they had purchased USD1.5 billion of Bitcoins. Earlier, founder Elon Musk had been full of praise on Twitter for cryptocurrencies, with his remarks bringing about a twenty percent increase in the value. However, the announcement by Tesla that they had splurged some of the USD19 billion cash pile that they have on cryptocurrencies was so significant that it managed to push up the value of Bitcoins by a further two percent.

Of course, there is plenty of speculation about whether Musk will get into trouble with the SEC again for trying to manipulate the market. There is also a lot of speculation as to how they will account for the purchase on their balance sheets. However, one thing is for sure – very soon you will be able to buy a Tesla for Bitcoins, although why you would need Bitcoins to accept Bitcoins is a little beyond my level of economics and accountancy qualifications, but apparently it has something to do with liquidity……

Musk and Tesla are not the first to start taking Bitcoins in exchange for cars. There are loads of dealers that are doing it, particularly around Silicon Valley, where it has been known for people to pay for a pizza delivery via cryptocurrencies. Heck, back in May 22nd of 2010 is the day the first Bitcoin transaction took place when in Florida, Laszlo Hanyecz bought two Papa Johns pizzas for 10,000 Bitcoins. In today’s value, that would be about USD80 million. I hope they gave him extra pepperoni and free hot sauce

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