Bitcoin has exceeded the $ 50,000 threshold and shows no signs of slowing down

The support shown by Elon Musk and the announcement of Tesla’s purchase of $ 1.5 billion in Bitcoin coins seems to have given courage to other investors with deep pockets.

Are Elon Musk’s tweets a good investment strategy? For him and the company he runs, apparently yes. Normally, Elon Musk’s gesture to publicly support an asset in which he had just invested heavily, in anticipation of its increase in value, would have been considered an attempt to manipulate the market and followed by investigations into infringements. But as the cryptocurrency market operates outside the sphere of influence of the laws governing traditional stock markets, Elon Musk’s gesture in support of Bitcoin will most likely remain without legal consequences and, in any case, very profitable.

As a sign, the gestures by which Elon Musk showed his support for Bitcoin and Dogecoin coins, displaying their symbol on his Twitter account, led to frantic episodes of buying. For example, the price of Dogecoin has increased by over 50% in just a few hours.

The fact that Tesla converted $ 1.5 billion into Bitcoin has been described by some analysts as an “extremely risky” and “crazy” investment, stressing that Tesla could lose almost all of its net income in 2020 as a gamble. , if the price of Bitcoin fell by 50%.

Meanwhile, a number of banks and fintech companies, including Mastercard, Bank of New York Melloncorp, Visa, PayPal and Square, have recognized the demand for cryptocurrency transactions and have begun supporting Bitcoin and a few other currencies.

“Mastercard is not here to recommend that you start using cryptocurrencies,” the company said in a press release. “But we are here to allow customers, retailers and companies to move digital value – traditional or cryptographic – however they want. It should be your choice, it’s your money. ”

Erin Smith
As our second lead editor, Erin Smith  provides guidance on the stories Nomad Labs reporters cover. She has been instrumental in making sure the content on the site is clear and accurate for our readers.  If you see a particularly clever title, you can likely thank Erin. Erin received a BA and an MA from CSUF.