The Bitcoin shares skyrocketed by 20% in the market, thanks to Elon Musk’s Tesla, which purchased $1.5 Billion worth of Bitcoin, as announced by the company on Monday following its investment. Tesla’s huge investment in Bitcoin came after the company updated its investment policy last month. Bitcoin, which was rather believed as a joke by financial analysts, witnessed its shares’ shoot up by 20% as it crossed a whopping $44,000 after the news of Tesla’s investment came through. The company also announced that it will start accepting payments in the form of Bitcoins, which will be applicable as per trading laws and in a limited manner initially.
Why is Bitcoin a no-go zone for many investors?
Bitcoin has been a controversial issue since its inception. This cryptocurrency is generated after several high-powered computers compete against one another to solve complex mathematical puzzles. The ones who make it through in the fastest time trigger the generation of a cryptocurrency, also known as Bitcoin mining. These can also be called digital currencies and can be used in sending or receiving digital wallets. They will not yield you any dividends, and the volatile value of these bitcoins is only as much as the other person is ready to pay for them. However, if the other person is the richest person on the planet, the same Bitcoin may turn out to be more than a fortune.
Will Elon Musk Turn Bitcoin Green?
Elon Musk, the maker of Electric cars and a supporter of a carbon-free world, ironically backed Bitcoin that is deemed to contribute to the carbon emissions, given its massive generation process. Although one may believe that being a digital currency, Bitcoin is not much of a hassle; however, environmentalists have been against its mining due to its high computing power, which eats up so many resources. Reportedly, Bitcoin’ mining’ gobbles up the same amount of energy as devoured by the Netherlands in 2019, according to statistics.
Dogecoin goes Sky-high as Musk tweets to back the Crypto
Musk’s recent tweets like “Dogecoin is the people’s crypto” and “No highs, no lows, only Doge,” and a recent poll on the future currency of earth signaling towards Dogecoin was enough for his followers to fathom that cryptocurrency is the next best thing. These tweets supporting Dogecoin by Musk and other celebrities sent Dogecoin to record high. While many experts don’t rely on or Dogecoin, or other cryptocurrency’s credibility, there are buyers who are ready to take risks. However controversial or futile people may find Bitcoin to be, the ways markets have reacted to Tesla’s Bitcoin purchase speak volumes about the markets’ irrational capacity.
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