Tesla Invests in BitCoin

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According to the Washington Post and an SEC report, Tesla has invested  $1.5 billion in bitcoin and plans to start accepting the cryptocurrency as payment in the near future.

Questions:

  1. As a result of Tesla’s announcement, what happened to the price of bitcoins?
  2. Alternatively, did Tesla show as much movement?
  3. How does the price of bitcoins today compare with the price at the beginning of the year?
  4. According to the HSB 2020 survey, what percent of small and midsize American businesses accept cryptocurrency?
  5. Do you think that bitcoin is a gimmick for Tesla? Discuss.

Source:

Telford, T. (2021). Tesla invests $1.5 billion in bitcoin, will start accepting it as payment. The Washington Post, Feb.8,(Retrievable online at https://www.washingtonpost.com/business/2021/02/08/tesla-bitcoin-musk-dogecoin/)