Tesla’s move of purchasing $1.5 billion bitcoin has sent shockwaves in the crypto world, sending the bitcoin price to reach $46,500 at the time of writing. Now more than ever is the need to understand how this purchase will influence other businesses and shape the American economy from this point forward.
If skeptics are to be believed, this deal will affect the economy because it is Elon Musk, a billionaire who initiated the move and not some ordinary human being like you and me, says Thomas Hayes, Managing member at Great Hill Capital LLC.
Michael Novogratz, a founding member of Galaxy Digital, a crypto-investment consultancy, spoke on similar lines to the media and suggested if some organizations in the USA follow Elon Musk’s footsteps and begin to take bitcoins to the treasury funds, it is going send a strong message— leading all organizations to flock together in the same direction.
Analysts at Fundstrat Global Advisors stated that the companies focking together towards bitcoin investment would be more of an evolution than a revolution, but it is inevitable. James Angel, Associate professor at Georgetown University, put forth a vital perspective on the table as he mentioned that investors holding the reins of the investment portfolio of businesses follow a conservative approach and choose safe liquid assets. And cryptocurrency falls in the category of volatile investments, which are subject to high fluctuation and hence cannot be viewed for securing cash in the short-term.
Opposing the outlook of the skeptics, MicroStrategy’s CEO Michael Saylor spearheaded a business convention encouraging corporates to follow Tesla’s footsteps. More than 1400 corporates were expected to participate at the convention. Fundstrat reportedly stated that technological and financial firms would be far more receptive to the idea of crypto adoption than other industries. Speculations are rife: Leading players like Facebook and Google could join the bandwagon shortly, suggested Amber Ghaddar, founder of a fintech firm, AllainceBlock.