According to a report by BBC Online, Tesla had earlier invested 1.5 billion in Bitcoin. That's when the announcement came, in the future Tesla cars can be bought in this virtual currency. The exchange rate of Bitcoin started rising after that incident. At one stage it exceeded 70,000 US dollars.
Tesla cars, an electric car maker, can be bought for Bitcoin. Elon Musk, the CEO of the US company, confirmed this in a post on Twitter.
Elon Musk is a big sponsor of Bitcoin. He wrote about this occasionally on Twitter. And this time he announced to buy a car in exchange for bitcoin.
The problem, however, is that the exchange rate of Bitcoin fluctuates very quickly. This can lead to problems in valuing Tesla cars bought in Bitcoin in dollars or any other currency.
Elon Musk has confirmed that Tesla will keep the value paid in bitcoin as bitcoin, not convert it into any other currency. In Musk's words, Tesla will use its own software to pay for Bitcoin. That software will be able to directly manage bitcoin nodes. The node is basically a computer that handles bitcoin transactions.
New Tesla cars can be ordered in the United States by depositing 100 worth of bitcoin. In the coming days, that facility will be available in other countries as well.