Elon Musk Says Tesla Vehicles Can Now be Bought Using Bitcoin
For now, it is possible only in the US, but they will start accepting Bitcoin also in other countries later this year, as Musk claims.
A short while ago, Tesla had stated that they could accept Bitcoin soon as a payment method. The company also announced that they bought $1.5 billion worth of Bitcoin. This announcement had a great impact on the cryptocurrency market, and we witnessed a significant rise in the price of Bitcoin.
Soon after, at the end of March, Elon Musk tweeted that “you can now buy a Tesla with Bitcoin.” This option is now accessible on the US website of the company. To initiate the payment, the users may either scan a QR code or copy and paste their crypto wallet address. In the FAQ section on its site, the company warns that trying to pay with different types of cryptocurrency during the same purchase process will not work and it might even result in a loss of funds for the customer.
Musk also added that Tesla is using internal and open-source software and it directly operates Bitcoin nodes. That is to say, Bitcoin that is used in the transaction will not be converted to fiat currency; it will be possible to use Bitcoin directly. In blockchain terminology, nodes refer to connected computers and distribute information across the blockchain network.
In addition to these, the company stated that the investment policy of Tesla has been updated to allow the investment of alternative reserve assets (including digital assets). What we are having is a paradigm shift, Elon Musk argued in a recent interview.
How smart is it to buy Tesla with Bitcoin?
J.P. Koning from Coindesk claims that Elon Musk might be using this payment method to compensate for the loss due to refunds. 33In the US, there is a law that protects car buyers when they experience a producer-related problem with the car. J.P. Koning states that the consumer, within a specified period, has the right to demand the refund of the whole amount.
In the conditions of the payment contract for Bitcoin, Tesla reserves the right to choose the type of currency that will be refunded in the necessary circumstances. This means that if you used Bitcoin to buy a car that is worth $50,000 and if you claimed for a refund, Tesla could pay your money back with the currency that has less value at that moment. The company thus would avoid any possible loss.