The CEO of Tesla and SpaceX has decided to invest USD 1.5 billion in Bitcoin. Saylor succeeded in changing Musk’s attitude towards the cryptocurrency, which he accepted as a payment method and a store-of-value asset.
Many people know Elon Musk as an eccentric person, especially because of the controversial ideas that he shares through Twitter. However, the executive has become one of the most important figures in the business world around the world.
Musk always seeks to stay at the forefront of new technologies, which characterizes this businessman’s personality. For that reason, he has invested time and money in technology companies like PayPal, Tesla and SpaceX, which he has turned into great successes.
However, he had not dared to enter the world of cryptocurrencies, limiting himself to making jokes on Twitter. Although he had been supporting Dogecoin for years, he had not shown a real interest in crypto assets.
That situation began to change during the big bullish rally that took the price of the cryptocurrency above USD 40,000. Elon Musk then posted on Twitter a meme suggesting that Bitcoin was tempting him.
Increasing Pressure to Buy Bitcoin
That tweet led dozens of well-known influencers to try to convince Musk of the qualities of Bitcoin. That list included Justin Sun and Changpeng Zhao, among others, but only Michael Saylor, CEO of MicroStrategy, was successful.
Saylor responded to Musk’s tweet recommending him to invest Tesla’s cash balance in Bitcoin. He spoke of the experience that a multi-million-dollar purchase of Bitcoin had brought MicroStrategy. He emphasized the fact that this acquisition generated huge profits for the company in just a few months.
“If you want to do your shareholders a USD 100 billion favor, convert Tesla’s cash balance into Bitcoin. Other S&P 500 companies would follow your example, which would turn into a USD 1 trillion favor over time,” Saylor wrote.
The CEO of Tesla simply asked if it was possible to make such large transactions in the crypto asset market. Saylor then offered to share what MicroStrategy had done, but Elon Musk did not respond again, at least not in public.
From Dogecoin to Bitcoin
Following Saylor’s response, Elon Musk’s change in attitude towards crypto assets was soon obvious. He started supporting Dogecoin, a digital currency created as a joke, whose price gained momentum thanks to Reddit group SatoshiStreetBets. However, Musk’s messages of support contributed to multiplying the price of that crypto active in a matter of just a few days.
In late January, Elon Musk posted the word “Bitcoin” on his Twitter biography as a final warning before his latest announcement. Tesla, the main company that Musk runs, admitted buying USD 1.5 billion worth of Bitcoin. Likewise, they said that they would soon accept the virtual currency for the purchase of their electric cars. In this way, they give value to Bitcoin as a payment method and a store-of-value asset.
The price of Bitcoin has reached new all-time highs, which is why many companies are considering following the path of Elon Musk and Tesla. The tycoon thus recognizes the importance that cryptocurrencies will have in the future of the world’s economy.
By Alexander Salazar
