The cryptocurrency market went into frenzy mode as TESLA company announced earlier today that it had bought USD 1.5 Billion worth of Bitcoins. Not only is TESLA holding BTC, but they plan to start accepting Bitcoins as a payment method. This is very big news for cryptocurrencies for several reasons and opens up big opportunities for other tech giants to enter the game. Let’s see how this news will positively affect the crypto market.
Why a TESLA buy is GOOD for the cryptomarket
For many years, cryptocurrencies were always regarded as an asset for online tech people, for many reasons:
- They are a bit complex to explain
- The idea of something non-tangible
- The idea of something purely “online”
Mass adoption was the dream. This mass adoption would raise the demand for the coins, and in turn, raise the prices. But for mass adoption to happen, several components are required:
- Mass adoption
- Businesses adoption
Since 2008, mass adoption started to gain momentum, with people getting attracted to the world of cryptocurrencies because of their decentralized nature, and because of the high prices. All that’s needed was the business adoption,
Today, an important milestone happened when TESLA bought BTC, as a giant tech company not only now owns Bitcoins, but plans to accept bitcoins in the near future. The people are now more educated on cryptocurrencies, and now with businesses entering the game…That mass adoption dream is coming to life.
Will other Big Tech follow?
The question is not whether other businesses will follow, but rather when will they follow. Many companies expressed previously their intentions to enter the crypto game, like Facebook wanting to experiment with the Libra coin, which never picked up, yet.
In 2020, and with the Covid events, many banks had to close due to local regulations, and that slowed the financial cycle significantly. Big Tech companies have it in their interests to look for a substitute away from traditional finance, an alternative that would be faster, more efficient, and cheaper…Cryptocurrencies of course! They are always available 24/7 without the need to clear payments from both sides.
Google banned ICOs back in 2017, and that was due to massive scams happening that were exploiting Google Ads services, but later lifted off that ban. Many cryptocurrency critics changed their stance towards cryptos. Most of their negative view came from the famous pump-and-dump era of 2017. Other than the “bubble” excuse, there are none.
When other companies follow, Bitcoin will definitely rise to new highs, of course along with the whole cryptocurrency market, as the prices of cryptocurrencies are directly relational with demand and supply.
2021 will definitely be the year where companies across the world will experiment with cryptocurrencies. The need for a decentralized 24/7 system that allows Big Tech to control their own financial standing is much needed in today’s technological infrastructure. Tesla was the first company to do so…who’s next?
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