Tesla’s CEO Elon Musk announced earlier today that it is now possible to buy Tesla Vehicles in the US with Bitcoin and a subsequent tweet that Bitcoin paid to Tesla will be retained as Bitcoin and not converted into fiat currency.
Tesla only uses internal and open source software and operates Bitcoin nodes directly.
Bitcoin paid to Tesla will be retained as Bitcoin and will not be converted into fiat currency.
– Elon Musk (@elonmusk) March 24, 2021
The automaker announced last month that it had bought $ 1.5 billion worth of Bitcoin and would soon be accepting the world’s most popular cryptocurrency as payment.
“You can now buy a Tesla with Bitcoin,” tweeted Musk, who was officially named “Technoking of Tesla” this month.
ON Support page The Tesla website explains how customers can pay for a Tesla using the digital currency. The company’s electric vehicles typically cost between $ 37,990 and $ 124,000 before taxes.
People outside the US will be able to buy a Tesla with Bitcoin “later this year,” Musk said, without specifying which countries.
According to Tesla, Musk uses “internal” and “open source software” to accept the payment. He added that Tesla “operates bitcoin nodes directly”. Nodes are computers on the Bitcoin network that check transactions and prevent the cryptocurrency from being spent twice.
The important note was the last part “Bitcoin that is paid to Tesla will be kept as Bitcoin and not converted into fiat currency”, an action that cryptocurrency enthusiasts refer to as “HODL”, an acronym for “Hold on for Dear Life” .
– Herbert R. Sim (@HerbertRSim) March 24, 2021
In the company’s refund policy, Tesla warned buyers that if the company tried to return their electric car and get a refund, they could choose to pay it back in US dollars or Bitcoin. Tesla reserves the right to refund customers in US dollars at the exact price Bitcoin was worth at the time of purchase.
This would supposedly allow Tesla to take advantage of price fluctuations in the cryptocurrency or fiat currency and give customers less than what they might be entitled to with a refund based on a direct US dollar transaction.
Daniel Ives, an analyst at Wedbush, said in a research report on Wednesday that his company didn’t expect Tesla to accept bitcoin payments until the second half of this year.
“This is a defining moment for Tesla and the crypto world as Musk is now severing the red ribbon for bitcoin transactions within the broader Tesla ecosystem,” said Ives. “We estimate that less than 5% of transactions will be processed through Bitcoin in the next 12 to 18 months. However, this could increase over time as the adoption of crypto increases in the years to come.”
(Photo: Wikimedia Commons)