Announcement of 1.7 Trillion Won Purchase
Policy to Allow Car Payments with Bitcoin
Concerns Over Possible Link Between Tesla Stock Price and Bitcoin Value
[Asia Economy New York=Correspondent Baek Jong-min] Electric vehicle manufacturer Tesla has purchased a large amount of Bitcoin and decided to allow Bitcoin payments. Following this news, the price of Bitcoin surged 20% in one day, surpassing 50 million won. While there is optimism that Tesla's decision could accelerate the institutionalization of Bitcoin, concerns have also been raised that it may encourage speculation.
On the 8th (local time), U.S. media including Bloomberg reported that Tesla revealed in a filing submitted to the Securities and Exchange Commission (SEC) that it had purchased $1.5 billion worth of Bitcoin by the end of last year.
Tesla explained, "We purchased Bitcoin to maximize returns and diversify by utilizing cash on hand." Tesla also stated that it would consider investing not only in Bitcoin but also in gold bars and gold-related exchange-traded funds (ETFs).
In particular, Tesla announced that it would soon allow vehicle purchases to be paid for with Bitcoin. CNBC reported that Tesla has become the first major automaker to recognize Bitcoin.
This announcement came after Tesla CEO Elon Musk recently made a series of supportive remarks about virtual assets such as Bitcoin and Dogecoin. Musk updated his Twitter profile to include Bitcoin and said, "I should have bought Bitcoin 8 years ago."
Notably, he also asked on Twitter whether people could "buy a large amount of Bitcoin," drawing attention. The market saw this as an example of Musk being a supporter of virtual assets, but he took direct action.
Tesla's announcement immediately shook the virtual asset market. According to CoinMarketCap, a global cryptocurrency market data site, as of 8:40 a.m. on the 9th, Bitcoin was trading at $46,258 (approximately 51.69 million won), up 20.21% from the previous day.
The market expects Tesla's decision to potentially accelerate the institutionalization of Bitcoin. While companies like Fidelity, Square, and PayPal have recognized Bitcoin, Tesla's influence is significantly greater.
Wedbush Securities analyst Dan Ives also said Tesla's decision "will have a ripple effect on companies worldwide" and evaluated it as a potential "game changer" in terms of Bitcoin usage in transactions.
On the other hand, concerns about Tesla's investment in virtual assets have also emerged. The Wall Street Journal (WSJ) pointed to the GameStop price volatility case as another warning to investors.
WSJ judged that "the risk factor of holding Tesla stock, which has risen to the most dangerous level even in the current speculative market, has been added."
WSJ recalled the case of General Motors (GM) founder William Durant, who engaged in speculative investments that led to a bailout, advising that "Tesla's decision suggests it might be better to leave early rather than stay too long at a 'party' led by individuals."
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