- Tesla on Monday made its biggest endorsement of bitcoin, saying it invested $1.5 billion in the token.
- It helps to bring bitcoin further into the mainstream, as both a form of payment and an investment.
- Insider compiled quotes from six experts on what this could mean for new buy-in from large investors.
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Tesla on Monday revealed a $1.5 billion investment in bitcoin that pushed the digital currency to a record high of $47,889.
The electric-car maker also said it would soon begin accepting bitcoin as payment for its products.
Some analysts said that while Elon Musk is a relatively late adopter of cryptocurrencies, they believe this is one of several investments he will make in the space.
What 6 experts in the crypto industry said about Tesla’s purchase
Stefan George, cofounder and chief technology officer at the prediction-market platform Gnosis
“Tesla’s bitcoin acquisition is a strong signal for a new era of integration between the cryptocurrency ecosystem and mainstream business, in which tokens increasingly act as not only a store of value but tangible medium of exchange.”
Dermot O’Riordan, partner at the blockchain-focused private-equity firm Eden Block
“This moment will likely be looked upon in years to come as a genuine tipping point; Elon and Tesla’s support legitimizes crypto and opens up bitcoin to a whole new class of retail and institutional investors. Now it seems all of Wall Street is in bed with this industry – if they weren’t paying attention before, they are now.”
Antoni Trenchev, cofounder and managing partner at the crypto lender Nexo
“Tesla and Bitcoin – the archetypes of volatility – inevitably meet again because they are tools that came about because of frustration and courage, to paraphrase the old saying. Frustration at the way things are, and courage to make sure that they do not remain as they are.”
Alex Mashinsky, CEO of the crypto lender Celsius Network
“The richest person in the world just told you he does not believe in holding dollars as a long term store of value. We have heard from the smartest investors in the world and now we have heard from the richest people in the world, they all agree that having 5-10% of your net worth in BTC is a critical part of a well diversified portfolio.”
Leah Jonas, head of partnerships at Celsius Network
Tesla’s investment “cements crypto into both history and the future as not only a fundamentally safe store of value, but an asset with an infinite amount of applications yet to be discovered. I see this as the door opening wide for crypto companies with B2B services, like my companies, to put their products to the test and usher in the next wave of adoption in partnership with Tesla.”
Jean-Michel Pailhon, head of the ledger enterprise at Ledger, a security-solutions firm for crypto assets
“Tesla’s move further gives the industry validation and shows crypto’s resiliency as an asset class. The battle of custody and safeguarding these volatile assets will be the next thing to watch. Tesla could either pull it off with an in-house solution though they may suffer from inflexibility compared to other infrastructures.”