Bitcoin gets Tesla boost; Anil Singhvi says Elon Musk investment to increase acceptance of cryptocurrency

One asset class is increasingly in the news these days. This asset class is Bitcoin cryptocurrency and it is creating history. On Monday, Bitcoin price shot up over USD 43,000, which is unprecedented. Now, it has been revealed that Bitcoin will become legal tender for Tesla company, which is also constantly in the news because of its Founder Elon Musk getting into one controversy after another over the years. Billionaire businessman and Tesla Inc Founder Elon Musk has invested USD 1.5 billion in bitcoin and has even indicated that he will accept this crypto for payment purposes. Will this enhance the acceptance level of this cryptocurrency? Zee Business Managing Editor Anil Singhvi gives his take on this! 

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The Market Guru said that there is no doubt that the acceptance for Bitcoin will only grow after Musk’s decision to put money into it. He further said that the Chief Executive Officer (CEO) of the company has put a sizeable investment into bitcoin. 

Anil Singhvi was however, surprised that the CEO had used company’s money for investment instead of his own money. It would have been difficult for an Indian businessman to put company’s money in Bitcoin.

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Elon Musk की Tesla ने दिया Bitcoin को बूस्ट...

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Anil Singhvi was however, surprised that the CEO had used company’s money for investment instead of his own money. It would have been difficult for an Indian businessman to put company’s money in Bitcoin.

He said that though, bitcoin is still not legal in India and the Reserve Bank of India (RBI) may be launching its own cryptocurrency, the game around this asset class is completely technology based. He said that technology is so powerful that even if you don’t see anything, the currency is still there. 

He said that there was a transformation from coins to currency notes and now we are in the digital transactions. With bitcoin now in the horizon, digital currency is the new reality, the Managing Editor said. 

It is a big recognition for bitcoin if Elon Musk puts his money into this currency and even indicates that he will be accepting it as a payment option.  

He was of the view that Governments across the world including India will look at this currency now, enhancing the acceptance.  

The markets have not reacted negatively in the US despite Tesla being a negative cashflow company, Singhvi said.