Tesla Inc’s Founder and Chief Executive Officer (CEO) Elon Musk’s investment of USD 1.5 billion in Bitcoin is a big development as far as this cryptocurrency company is concerned. After the disclosure was made by Tesla in an exchange filing, the price of Bitcoin jumped by over 15 per cent.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The price of Bitcoin shot over USD 44,000 after the disclosure was made by Tesla. The American electric vehicle and clean energy company is the biggest investor in the Bitcoin. The company has even announced that it will accept payments for the cars it sells in bitcoins.

See Zee Business Live TV Streaming Below:

Which cryptocurrencies are in running?
 
-- There are around 6700 cryptocurrency companies which are currently traded like bitcoins.
-- The total cryptocurrency market is worth USD 900 billion.  
-- Bitcoin is the most popular cryptocurrency with a market cap of around USD 563.8 billion.  
-- The money is raised through initial coin offering (ICO)  
 
Most popular cryptocurrencies

  • Bitcoin                   USD 563.8 billion
  • Ethereum             USD 142.9 billion
  • Tether                   USD 25.2 billion
  • Polkadot              USD 13.9 billion
  • XRP                     USD 11.4 billion

Why is cryptocurrency popular?
 
-- The investors see this as a currency of the future  
-- No interference by central banks of the respective countries
-- The central banks decrease the value of money through inflation
-- Technologies like blockchain has big acceptance.
-- It is more secure than the traditional mode of payments
-- Interest due to the rising prices of cryptocurrencies.
 
Is cryptocurrency like Bitcoin a legal tender?  
-- US has made trading in cryptocurrency legal.  
-- In China, trading in cryptocurrency is illegal.  
-- Trading in cryptocurrency is not legal even in India
-- In 2018, the trading was stopped temporarily
 
Online brokers for cryptocurrencies
-- Coinbase
-- eToro
-- Robinhood
-- SoFi Active Investing
--TradeStation
 
Know more about Bitcoin
-- Launched in 2009, this digital currency is available only online
-- There is no oversight of Central Bank or a banking regulator
-- The cryptocurrency is stored in digital wallet
-- Oversight on transaction is by Public Ledger Blockchain  
-- On can trade it in one or more countries without revealing identity
-- Trading in Bitcoin is not legal in India
-- The government wants to launch its own cryptocurrency
-- People keeping an eye on draft regulation after this gets global acceptance