Elon Musk, chief executive officer (CEO) of electric car maker Tesla, says consumers will now be able to buy their cars with a bitcoin. Elon Musk’s announcement is an important step in the use of cryptocurrencies in commerce.
“Now you can buy a Tesla with a bitcoin,” Elon Musk said in a tweet, according to Reuters. He added that the option would be available outside the United States later this year
The electric car maker said last month that it had bought $1.5 billion worth of bitcoins and would soon start accepting bitcoins to pay for cars. This was followed by a sharp rise in the value of the bitcoin to $62,000. The value of the world’s largest digital currency, the bitcoin, rose more than 4% after Elon Musk’s tweet, trading at $56,429.
Elon Musk said the bitcoin paid to Tesla would not be converted into a traditional currency, but gave other details on how the bitcoin would be paid. He said that the company is using ‘internal and open-source software in this regard. Keep in mind that most large companies, such as AT&T and Microsoft, which allow customers to pay with bitcoin, use special payment processors that convert cryptocurrency into dollars and send the total amount to the company.
Bitcoins are rarely used in large economies like other cryptocurrencies. Elon Musk, who regularly tweets about cryptocurrencies, criticized traditional cash last month. Following Tesla’s investment in bitcoin, MasterCard and Bank of New York Mellon have also begun working on the issue. In this regard, it is predicted that bitcoin and other cryptocurrencies will soon become a regular part of investing.