MUSK CUTS RIBBON FOR BITCOIN TRANSACTIONS!
Tesla one of the largest automaker in world, and is now collecting bitcoin as a more of payment. Tesla CEO Elon musk announced that it's now possible to buy Tesla vehicles using bitcoin.
The automaker announced last month that it had bought $1.5 billion worth of bitcoin, and they would soon start collecting cryptocurrency as a mode of payment. A support page on Tesla's website shows how you can use bitcoins to buy their cars which range from about $40000 to $1250000 before taxes.
The companies CEO tweeted that everyone can now buy a Tesla with bitcoin without specifying the countries where this mode of payment would be implemented.He also told they were using "internal" and "open source software" and told Tesla would operates bitcoin nodes directly. Nodes are computers on bitcoin's network that work to verify transactions and avoid the cryptocurrency from being spent twice.
In the firm's refund policy, Tesla cautioned buyers that should if they seek to return their electric car and obtain a refund, the company can choose to pay them back in U.S. dollars or bitcoin. Tesla also told that it would, refund the customer in U.S. dollars at the exact price bitcoin was worth at the time of purchase.
Daniel Ives, an analyst at Wedbush stated that Tesla is not accepting bitcoins till the second of the year. They expect the transactions to be 5% using bitcoins and expect it to grow higher in the near future with Tesla cutting the red ribbon for bitcoin transactions.
THE MUSK EFFECT
As we all know the company's CEO is known for his activeness on Twitter and is regarded as the "coolest" CEO by the younger generations, people have started to look up to to him. With musk cutting the red ribbon for bitcoin transactions, it all comes down to when will other conglomerates like Tesla would accept cryptocurrency as a mode of payment.
IMPLICATIONS OF CRYPTOCURRENCY AS A MODE OF PAYMENT
Advantage for the companies:
As cryptocurrency is a growing market, the payment received by these companies will grow unlike in case of money.
Disadvantage for governments:
If cryptocurrency becomes a regular mode of payment it would be difficult for governments to keep a track of the money circulated leading to economic problems on a large scale.
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