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even if it replaces investments in gold
"Tesla, a leap in platform company strategy"
Bitcoin Volatility Increases Anxiety.
When the price of a Bitcoin cryptocurrency transaction exceeded 50 million won, the price of the cryptocurrency, including Bitcoin, is displayed on the monitor of the customer center of the cryptocurrency exchange in Gangnam, Seoul. Bitcoin was trading at an all-time high just after US-based Tesla announced a purchase for about 1.7 trillion won.
Tesla gave wings to bitcoin.
In a report submitted to the US Securities and Exchange Commission (SEC) on the 8th (local time), the American electric vehicle company Tesla stated: “Last month we bought $ 1.5 billion worth of bitcoins (about 1 6 trillion won), and when customers buy our products, we can pay with them. ” He added: "In the future, it will be possible to acquire more digital assets to diversify assets and maximize cash returns, and some may invest in alternative assets such as gold." This makes Tesla the first automaker to accept Bitcoin as a payment method. This is estimated to be incomparable in terms of impact with online payment companies such as PayPal and Square, which decided to allow Bitcoin payments last year.
The bitcoin price rose sharply immediately after the announcement was posted on the same day. Looking at the price of CoinDesk, the cryptocurrency special media, as of 4:00 pm on the 9th, it was around $ 48,000 per coin, which is up 23% to hit a new high. Internal trading company Upbit rose to 51.2 million won. Tesla's announcement that day also impacted the asset market as a whole. New York Mercantile Exchange gold futures at $ 1,834.2 per Troion, up 1.1% ($ 21.20) amid news that Tesla said it has a place to invest in gold bars or funds listed in gold (ETF). Payment systems and semiconductor stocks rose sharply in the New York stock market.
Tesla's decision comes as no surprise given CEO Elon Musk views Bitcoin favorably. Musk last month changed the self-introduction section of his Twitter account to "# Bitcoin" and left a weird post that said, "In retrospect, it was inevitable." He recently appeared on the voice-based social network Club House and said, “I think bitcoin is good. I should have bought it at least 8 years ago".
Foreign media such as CNBC have estimated that Tesla's decision could affect other global companies as well as the expansion of the cryptocurrency market, as well as a turning point for the platform itself. There is also the prospect that Apple is investing in cryptocurrency. Canadian investment bank RBC Capital Market predicted in its report that "Apple with excellent security software will be able to move into the cryptocurrency market and improve transaction security".
There is also analysis that Tesla's Bitcoin purchase is a governance strategy aimed at moving to a platform company that goes beyond a simple investment goal. Han Dae Hoon, a researcher at SK Securities and a cryptocurrency expert in Korea, analyzed that "Musk plans to use bitcoin in payments, creating a business that integrates huge amounts of data generated in cars and communication networks".
Some believe that the volatility of the bitcoin price is so great that Tesla's earnings are unlikely to become volatile. Seo Sang-yeon, a researcher at Kiwoom Securities, said, "If the bitcoin price falls below Tesla's purchase price (book value), it could be considered a loss and negatively affect earnings". Controversy is spreading, for example, warnings that they will study the decision-making process.