Will Bitcoin holders buy Tesla Cars with their Bitcoin

Elon Musk announced that Tesla would sell their cars for Bitcoin! It is a big announcement and it has already pushed Bitcoin prices up by more than 3% as this article is written.

While the news is very good for the market and for Blockchain adoption, the main discussion among Bitcoin community members is shall we buy a depreciated asset like Tesla using an appreciated asset like Bitcoin?

After the initial purchase of 1.5 billion dollars’ worth of Bitcoin, Tesla seems to want to continue to purchase this rare asset, Elon Musk did not hide this fact when he tweeted,  “Tesla is using only internal & open source software & operates Bitcoin nodes directly. Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency”.

Looking beyond the fact that Tesla broke today a barrier of accepting cryptocurrency against goods, we should look into the economics Tesla is going to build around this move. Most probably, Tesla will be charging Satoshi soon against their energy, integrating SolarCity grid with Blockchain.

While We don’t expect many Bitcoin holders to go and  buy a Tesla car with their Bitcoin we do expect that  investors will go and buy Tesla shares. A futuristic car with a futuristic visionary behind it.

Walid Abou Zaki

Founder and CEO of Unlock Blockchain Executive Director of Al-Iktissad Wal-Aamal Co.

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