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The rate of Bitcoin has been steadily increasing. Over the past year, the cryptocurrency jumped by 300%, while this month it rose by approximately 50%. On Monday alone, its rate grew by 10% amid news that Tesla, having invested $ 1.5 billion in Bitcoins, announced that it would begin to accept the cryptocurrency as payment.
"Soon, we are going to accept Bitcoin as a form of payment for our products, in accordance with the current legislation," Tesla said in a statement.
Aside from that, the gold market was also shaken, after Tesla announced its decision to update its investment policy. According to the company, it will not only focus on digital assets, but on exchange-traded funds (ETFs) as well.
As a result, both bitcoin and gold rose significantly on Monday.
Bitcoin hit a new all-time high, surpassing $ 44,700. Meanwhile, gold futures for April increased by 1.20%, up from its previous value of $ 1,834.80.
According to Mike McGlone, senior commodity strategist at Bloomberg Intelligence, Tesla's investment could push Bitcoin up to $ 50,000, as well catalyze the cryptocurrency's market capitalization to $ 1 trillion.
"Tesla's news that the company is investing in Bitcoin and accepting cryptocurrency for payment is a stepping stone similar to the move of PayPal in October. It also increases the chance for Bitcoin to reach $ 50,000," McGlone said.
However, there has been a decline in the supply of bitcoins.
"By 2025, the annual supply of bitcoin should fall below 1%," McGlone added.
Just a week ago, Tesla's CEO, Elon Musk, said he was a little late in investing in Bitcoin.
"I should have bought Bitcoin eight years ago. At the moment, I think bitcoin is good," he said.
To date, Musk has been posting cryptocurrency-related topics including Dogecoin, which surged 65% in 24 hours and hit a record $ 0.083745 on Sunday.
Dogecoin was created in 2013, and it was based on the then popular doge meme depicting a Shiba Inu dog. The cryptocurrency was meant to be a joke, but became popular this year after it caught the attention of a Reddit group called SatoshiStreetBets.
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