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The price of bitcoin rose to a new high of more than $ 43,000 on Monday after Tesla reportedly bought $ 1.5 billion of the world’s most valuable cryptocurrency. In a regulatory submission, Tesla also announced that it is expected to “begin accepting bitcoin as a form of payment for our products in the near future.”
Tesla said it would “initially be on a limited basis, which we may or may not liquidate upon receipt.”
Bitcoin is in the midst of its fourth major bull market and has increased tenfold in the last two years. A growing number of mainstream organizations have chosen to add bitcoin to their investment portfolios, which increases the value of the currency.
While Tesla placed a big bet on bitcoin, the most well-known cryptocurrency, Elon Musk, CEO, tweeted about the most possible cryptocurrency, Dogecoin. On Friday night, for example, he A Twitter poll posted asks whether the ‘future currency of the Earth’ would be ‘Dogecoin to the Moooonn’ or ‘all other cryptocurrencies together’. Dogecoin won by a landslide.
A series of Musk tweets appear to have played a key role in the tenfold increase in Dogecoin’s value over the past two weeks. One Dogecoin is now worth more than eight cents, a record of all time.
At a recent appearance in the social audio app Clubhouse, Musk said he recently became a fan of bitcoin. He expressed regret that he had not previously invested in the cryptocurrency. He also warned people not to take his promotion of Dogecoin too seriously.
“Sometimes I make jokes about Dogecoin, but it’s actually meant to be jokes,” Musk said. “Dogecoin was made as a joke to mock the crypto, but fate likes irony.”
In its regulatory filing on Monday, Tesla warned that its bitcoin investments could add noise to the reporting of quarterly gains. Should bitcoin’s value decline – as it does from time to time – Tesla could be forced to recognize an impairment charge.