How do you explain it? The Central Bank of Nigeria (CBN) published a long thesis to explain its rationale for banning Bitcoin, in Africa’s largest economy. But hours later, Africa-born and the world’s richest man, Elon Musk, went on an economic baptism of all Bitcoin faithful. He blessed them with alpha, putting the reputation of the world’s finest innovator, at the moment, on the bytes and bits. Not just him, his company – the one which pioneered electric vehicles at scale – is coming to the party. Yes, Tesla will allow you to pay with Bitcoin for its vehicles.
The Bitcoin roller coaster is escalating again after Tesla announced it invested $1.5 billion in the cryptocurrency and plans to start accepting it as payments for its products. Bitcoin’s price surged to a new all-time record, soaring as high as $44.795.50 after the “vote of confidence from the electric-car market leader,” reports Bloomberg. Tesla is perhaps the most prominent company to throw its weight behind Bitcoin, with its hefty investment boosting the “legitimacy” of electronic currencies despite ongoing skepticism. (LinkedIn)
I am yet to make time to read Nigeria’s reasons. Typically, I read in context and the premise of its argument made no sense: you are fighting a war you have lost. Nigeria or no Nigeria, Bitcoin will fly. I used to be like Nigeria until I woke up to reality.
Young people here educated me and asked me to allow them to pay for Tekedia Mini-MBA with Bitcoin. I refused until one wrote “when I earn my salary, I convert all to Bitcoin …”. That was when I knew everything had changed.
Nigeria will come home at the end. Unfortunately, by then, it has succeeded in making its young people spectators instead of players most have already positioned themselves. Do not score own-goals like Nigeria!
Bitcoin took another large stride toward mainstream acceptance on Monday after billionaire Elon Musk’s electric vehicle company Tesla Inc revealed it had bought $1.5 billion of the cryptocurrency and would soon accept it as a form of payment for cars – sending the cryptocurrency shooting higher.
The announcements, buried deep in Tesla’s 2020 annual report, drove a 13% surge in the world’s most widely-held cryptocurrency to over $43,000. At current prices, 0.88 bitcoins would be enough to buy an entry-level Tesla Model 3.
Investors anticipated other companies will soon join a list of firms that invest in or hold bitcoin including BlackRock Inc, the world’s largest asset manager, and payments companies Square and PayPal.
Musk has upended Wall Street over the last year and briefly became the world’s richest person as shares of Tesla surged nearly 500% to become the fifth most-valuable U.S. company, leaving other companies and investors eager to follow in his wake.
“If any lesser mortals had made the decision to put part of their balance sheet in Bitcoin, I don’t think it would have been taken seriously,” said Thomas Hayes, managing member at Great Hill Capital LLC in New York. “But when the richest man in the world does it, everyone has to take a second look.”
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