The Bitcoin (CRYPTO: BTC) The price has increased 3.5% in the past 24 hours. One Bitcoin is currently worth $ 58,279 (AU $ 75,687).
According to CoinDesk, Bitcoin is now less than 6% below its record high of February 14th this year.
Should you approach Elon Musk about his Bitcoin offering?
March, Tesla Inc. (NASDAQ: TSLA) Founder Elon Musk made global news (again) when he announced that the company would accept Bitcoin as a means of payment for its electric vehicles. This offering begins in the United States and is expected to roll out globally in 2021.
At the current Bitcoin price, you need just under 2 Bitcoin to buy a basic Tesla Model S Down Under.
But should you
For this answer, we turn to Mena Theodorou, co-founder of the digital currency trading platform Coinstash.
He told the Motley Fool, “More and more investors are realizing that there is real potential for crypto-asset adoption, both as a store of value and as functional currencies for retail customers.”
On the way to a true digital revolution, this is the case [buying a Tesla with Bitcoin] actually makes sense. I would recommend getting used to the idea of digital currencies as the future of money. It is only a matter of time before people realize how easy and convenient it is to assign a utility to crypto assets in their daily life.
A smart investor could even get a loan on a Tesla in a cryptocurrency and pay the installments with the interest they earn on crypto assets in their crypto wallet, as the interest rate on these products is generally relatively high as they are not are regulated by a central bank.
Earn interest on cryptocurrencies
If you are not familiar with the concept of earning interest in your stored Bitcoin or other cryptocurrencies, you are not alone.
However, digital tokens don’t have to sit idly in your digital wallet.
According to Theodorou:
At Coinstash, we’re working on tools that will allow Bitcoin holders to put their “stored” crypto assets back into use by earning interest or as collateral for loans. Because of this, assets like stablecoins and altcoins have great potential to act as alternative currencies to Bitcoin.
What’s next with the Bitcoin price?
With Bitcoin up more than 100% in 2021 and Ether – the world’s second largest crypto by market cap – up 182%, we asked Theodorou what drove the great resurgence of the dominant cryptos. He said:
Most economists, and anyone with a basic understanding of supply and demand, agree that printing money to cover government debt is a short-term solution that can lead to catastrophic market devaluation. The fact that most crypto assets are not pegged to fiat currencies (like the US dollar or the Australian dollar) is possibly one of the main reasons that crypto assets have been doing so well in the crowd, especially in recent months have developed.
What’s next with the Bitcoin price?
Theodorou: “This is the million dollar question. In the long run, I believe Bitcoin has the potential to hit $ 100,000. “
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Bernd Struben has no position in any of the stocks mentioned. Motley Fool Australia’s parent company, Motley Fool Holdings Inc., owns and recommends shares in Bitcoin and Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains only general investment recommendations (under AFSL 400691). Authorized by Bruce Jackson.