Bitcoin rises to all time high after Tesla confirms investment in crypto
Elon Musk’s giant electric car company Tesla has invested $ 1.5 billion in bitcoin. The company also plans to adopt crypto currency as payment. After this news, the price of bitcoin has reached an all-time high. According to a Bloomberg report, bitcoin prices rose 10 per cent to $ 42,595 in London on Monday afternoon after Tesla announced the investment. According to a filing, Tesla made this announcement as part of an update about its investment policy.
Elon Musk, owner of the automobile company Tesla, is known for far-reaching thinking and innovations. Investments in Bitcoin by Tesla suggest that crypto currency has emerged as a form of investment on a large scale.
The rise and rise of Bitcoin
After Tesla’s investment, Bitcoin recorded a strong jump of over 14% on Monday. Tesla gave the information of investment made last month, 10 days after Musk’s tweet, in which he had just written ‘#bitcoin’. On that day also, a sharp rise in bitcoin was recorded. Along with giving information about investing in Bitcoin, Tesla said that soon the company is planning to start taking payments through this cryptocurrency from those who buy their cars and other products. Only after this statement, a jump of 7 percent was recorded in this e-currency.
What is crypto currency?
Crypto currency is a currency that is issued privately as a digital medium. It works on the basis of Distributor Laser Technology (DLT) like cryptography and blockchain. Simply put, blockchain is a bookkeeping in which transactions are recorded as blocks and linked using cryptography. Cryptography is a secure way of saving and sending information, in which the code is used and only that person can read the information for which it is sent. Bitcoin is the most popular crypto currency.
Crypto currency has advantages as well as some drawbacks. It does not have a meaningful mechanism to resolve customer problems and complaints. Apart from this, there is also a possibility of cryptocurrency being used in illegal activities like tax evasion, money laundering and terrorist funding.
