The price of Bitcoin is soaring after the investment of 1.5 billion dollars made by Tesla. But what is the reason Elon Musk’s company trusted the famous cryptocurrency?
Bitcoin had an unexpected rise, as Elon Musk’s Tesla decided to invest $1.5 billion in the most popular cryptocurrency. At the same time, it announced that it will accept payments for its products in Bitcoin.
According to a statement from the SEC, the company “bought Bitcoin to have more flexibility and to differentiate further, plus to maximize its returns.”
However, CNBC points out that this move has raised questions about the behaviour of CEO Elon Musk on Twitter in the last few weeks, where he was credited with raising the prices of cryptocurrencies, such as Bitcoin and Dogecoin, by publishing posts about them, thus encouraging people to buy.
It is recalled that the head of Tesla, on Thursday February 4th, in a series of posts on Twitter, mentioned the name of the Dogecoin cryptocurrency, while he wrote that it is the “cryptocurrency of people”.
Initially, he only wrote “Doge“, followed by a second tweet that read “Dogecoin is the cryptocurrency of people“.
He then said “not high, not low, only Doge“, causing Dogecoin to sweep the markets. In fact, according to Coindesk, the cryptocurrency gained $0.05798, profits of more than 50%.