Tesla buying bitcoin with billions is the current biggest news in the crypto industry. Even the Government of India is continuing with being bearish on cryptocurrency, except for those which are under the control of the center.

Tesla is spending $5.1billion for bitcoins to keep this digital currency on the headline. It is the first move by any big corporation. The investment of Tesla is unusual for a publicly listed company. It is giving more common risk to cryptocurrencies. The move is quite unusual, which can put the blockchain and cryptography at a crossroad.

For understanding the crossroad, it is crucial to understand how cryptocurrencies work. The fundamental theory for the cryptocurrency is its decentralized nature. It is not like fiat, which is controlled by the central authorities. Bitcoins are finite; there are 21 million bitcoins present in the world. This means that bitcoins are on a fundamental level. Its nature is hard for the government to control.

The companies and publicly traded ones are the unlikeliest consumers of volatility. With public money, it isn’t easy to imagine why investors don’t feel comfortable with the stakeholding of the company. With bitcoin, it is not impossible. For Tesla, $1.5 billion investment can be wiped out in a few days. Interestingly, this is the factor that is making Tesla has a bold move.

As Graham Tanaka, the CIO of Tanaka Capital Management, said to sources, “This may be a signal that it (Tesla) expects the cryptocurrency will emerge as another store of long-term value alongside the dollar and gold. Companies are very careful when it comes down to their reserves, and this doesn’t appear to be a flash in the pan.”

It is a validation moment for blockchain technology as it is viewed as infinite. It’s much like a controllable asset that can be major for corporate investments. On the other hand, it is limited in volume, but bitcoin gets more divisibility. Also, it opens up the opportunity for using it as a part of regular transactions. Thus, Tesla’s this new move can go for an establishment of digital currency adoption in many countries.

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