Elon Musk-led electric car maker Tesla indicated in a report recently filed with the US Securities and Exchange Commission (SEC) that they might start accepting Bitcoin payments again.
Will Tesla accept Bitcoin payments again?
This was stated by the company in its report to the SEC, where it confirmed that it still has possession of the bitcoins originally acquired this year and left open the possibility of accepting the digital currency again as a means of payment for its products and services.
In this regard, the report reads:
“In the first quarter of 2021, we invested a total of USD $1.5 billion in Bitcoin. In addition, during the three months that ended on March 31, 2021, we accepted Bitcoin as a form of payment for the sales of some of our products in specific regions, subject to applicable laws, and we suspended this practice in May 2021… It is possible that in the future let’s restart again with payments in digital assets for our products and services… The fair market value of our Bitcoin holdings as of September 20, 2021 was USD $1.83 billion. We believe in the long-term potential of digital assets as an investment and also as a liquid alternative to cash.”
Although Tesla says it is open to the possibility of resuming receiving payments with Bitcoin, the company did not reveal at the moment when it would have contemplated making this possible again.
Bitcoin, mining and carbon emission
At the time, Elon Musk’s flagship company struck the table by announcing the purchase of Bitcoin as part of its reserves and accepting payments with the digital currency had a quite positive effect on its price in the main markets, but More impact was generated by the announcement made in May of this year when they decided to close this possibility, citing at the time the problems associated with the high carbon emissions that the operation of the BTC network implies.
While the news had a fairly pronounced effect on the price of Bitcoin, critics and analysts indicated that Musk was referring to a real problem, and that the measure itself had a lot of consistency given that Tesla just dabbled in the manufacture of electric cars for mitigate the environmental impact of the automotive industry in general.
It is worth noting that Tesla’s announcement at the time coincided with the cessation of mining activities in China, which led to a massive exodus of companies based in the Asian country, which were looking for more friendly conditions to carry out their commercial operations.
Recently published reports indicate that this exodus has also helped companies in the mining sector seek to establish their operations in latitudes where renewable energy is used, precisely to mitigate the environmental impact derived from electricity consumption linked to this practice. Currently, the United States has been the country that has absorbed most of this diaspora, now ranking as the country with the largest number of companies of this type.
A new wind for Bitcoin
On the other hand, the possibility that Tesla will once again incorporate payments with Bitcoin comes at a particularly good time for the digital currency, which last week returned to position above USD $60,000 per unit, reaching new all-time highs close to those USD $67,000.
For analysts and enthusiasts, it could have a very positive effect if Tesla re-enables payments with Bitcoin, but the real gain is that this measure would also motivate other companies to take similar steps, making the digital currency an increasingly demanded item especially among the unfamiliar.
After the arrival of the ETF in Bitcoin futures to the US market, many traditional investors are beginning to show interest in the digital currency. Cryptocurrency-based funds are expected to arrive soon, although there are no official announcements about this yet.
At press time, Bitcoin is trading at about $61,600 per unit, capitalizing on 4.78% gains in the last 24 hours.