After Elon Musk announced that Tesla had invested $ 1.5 billion in its financial reserves in bitcoin, it dramatically shortened the time for regulators to better define the rules for trading and investing in cryptocurrencies and the rules for publicly listed companies regarding investing in cryptocurrencies. Given that Tesla has announced that it will receive payments in cryptocurrencies for its e-cars, it is obvious that cryptocurrencies have entered the mainstream business, while regulators have warned of the uncertainty of investing in cryptocurrencies and delayed the development of a legal framework.
Bitcoin is going through another turbulent phase these days. After record highs and prices that exceeded 40,000 US dollars, the most famous and strongest cryptocurrency in the world recorded large oscillations, and in a few days, it had dropped by almost 25%. At levels of 32-35 thousand dollars, bitcoin was traded in the second half of January, and on Friday the price of bitcoin went “sky high” in just a few hours.
Its sudden jump of over 17% was recorded, from about 32 to over 37 thousand dollars, and as the reason for the re-awakening of the demand side of the market, only one was isolated – the hashtag. Namely, last night Elon Musk, the richest man in the world and the boss of Tesla and SpaceX, put one short word in the description of his Twitter profile: #bitcoin.
So far, Musk has been able to announce new projects with his posts on Twitter, he has run into problems with regulators due to alleged manipulation of the stock market, and this time, for the crypto community to “go crazy” for bitcoin, he didn’t even have to tweet. His profile description was enough to attract many new customers and significantly raise the price of bitcoin.
Cryptocurrencies have proved impractical in everyday payments due to extremely high volatility. Business media speculate that Musk is trying to find a way to overcome this key problem to get closer to the large number of wealthy speculators who have invested in bitcoin and other currencies.
It should be noted that the board of directors and the accounting committee of Tesla made a very big business move when they signed an investment of 11 percent of the company’s cash in bitcoin. It is important to know that this is a part of the $ 5.6 billion debt that Tesla is partially dependent on to finance its operations. Some analysts fear that investing in bitcoin is a personal bet of Musk who is known as an anti-establishment manager.
Tesla explains to investors in their shares how they changed their investment policy to “diversify and maximize” the return on cash. They say that they do not need that part of the money to maintain “operational liquidity”, but they did not look at the possibility of what if bitcoin, for example, falls to 5 percent of the invested value.
It should be noted that during the last year marked by the pandemic, Tesla attracted billions of dollars through investments in its shares. Less than two years ago, it was theorized about the possible bankruptcy of that electric car manufacturer due to poor business results.
Why is bitcoin such a prized currency?
Bitcoin is becoming more and more popular day by day and is slowly becoming a part of everyday life. Nevertheless, it is often still misunderstood, which is why the media created a wrong image of Bitcoin. As a result, many people are poorly informed about what Bitcoins are, how Bitcoin originated, or how Bitcoin works.
How to make cryptocurrency trading easier for yourself?
As the value of cryptocurrencies grows, so does the number of people interested in investing and making potential profits. Of course, many would like to embark on this adventure, but they do not know how everything works, or simply do not have time to sit in front of small screens and follow every change in the market. According to bitcoinprofitpro.com/login, it is an obstacle that is easily solved. Thanks to modern technology, some applications do all the work for you, all you have to do is install it on your mobile device. What is it really about? The software application is designed to monitor every fall and rise of cryptocurrencies in the market and to inform you about it thanks to artificial intelligence. It is this artificial intelligence that is able to recognize changes in the market and react faster than the fastest trader.
What are the main advantages of Bitcoin?
To better understand the main benefits of Bitcoin cryptocurrency, we can look at them through Bitcoin values which we will explain in the next three items.
Decentralization: a solution to the problem of double-spending (transactions cannot be duplicated, which prevents the unlimited creation of new money).
Limited supply: cannot be more than 21 million Bitcoins (ensuring predictable supply and increased demand).
Cryptography: it is impossible to find out information about the sender/recipient (transactions are anonymous).
Why is a wallet necessary?
Like ordinary money, cryptocurrencies are kept in a wallet, but digital. What is important to know is that there are several types of wallets, and the main division is into cold and hot. The difference is that we need internet access for a hot wallet, so it is exposed to hacker attacks, while a cold wallet is hardware-software that keeps your cryptocurrencies safe, but it is also a big investment. However, when it comes to saving money, accept this as a smart investment.
Bitcoin represents a revolution in the monetary system, and the technology is still very young. It is a digital currency and a payment system. Transactions do not need an intermediary and more and more traders are accepting it day by day.
Bitcoin creator Satoshi Nakamoto has remained anonymous, but his identity is not important. His idea now has its path and it seems that the popularity of Bitcoin will not decline any time soon.