Tesla buys $1.5 billion in BitcoinThe price of Bitcoin shot past $45 000 on Monday, 8 February with news that Tesla bought Bitcoin to the value of $1.5 billion. Bitcoin’s market price exceeded $800 billion for the first time, with news of Tesla’s purchase.
The news was confirmed by a United States Securities and Exchange Commission (SEC) filing that showed that Tesla’s bitcoin purchase amounts to roughly 7.7% of the company’s gross cash position.
Tesla will also accept Bitcoin as a mode of payment. These Bitcoin payments will be added to the company’s balance sheet as opposed to liquidating the digital asset.
Co-founder and CEO of Tesla, Elon Musk changed his Twitter profile to BTC last week and send the crypto community into a frenzy. Musk is known as an avid supporter of Doge Coin and often posts a comment about the coin that sends the price to the moon. It is said that Tesla’s purchase of Bitcoin could lead to an increased retail adoption in the short term.
Speaking to retail adoption, Apple is rumored to announce a $5 billion Bitcoin purchase. Fingers crossed!
How much does a Tesla cost?The Tesla Model 3 starts at about R769 000 whilst a Tesla Model 3 Long Range 2020 is a cool R622 860, according to ccarprice.com. At the time of writing, the price of 1 BTC is trading at R713 000 on AltCoinTrader.
Setting financial goalsTraders are less likely to FOMO if they set clear financial goals when investing in cryptocurrencies like Bitcoin and Ethereum. Remember those who fail to plan, plan to fail. Here are five steps to setting financial goals:
- Decide what you need the money for. It could be to pay debt, to buy a house or to buy a Tesla (wink wink).
- Apply the SMART-goal strategy – Specific, Measurable, Achievable, Relevant and Timely.
- Set your budget. The golden rule of cryptos is not to invest more than you can lose. For this reason, it is important to invest an amount of money that you can make do without for a specified period. Remember to set a stoploss to protect your capital.
- Don’t be greedy. Once you’ve decided how much money you need to reach your specific goal, work out what price BTC has to reach in order for you to meet your goal. If you are satisfied with your profits, cash out and don’t look back. Majority of crypto analysts are predicting Bitcoin’s peak to be between $200 000 - $500 000 by the end of the year.
- Diversify your portfolio. For example, use half of your capital to buy Bitcoin and the other half to buy Ethereum.
Is it too late to buy BTC?Richard da Sousa from AltCoinTrader addressed the concern about whether or not it is too late to buy BTC in a video on the Rads ACT YouTube channel. According to him it is not too late to buy BTC but do so by means of rand cost averaging.
“Take a bit of money every month to buy cryptocurrencies. That way you will benefit and reap the rewards of cryptos. It is important to take care of your future.”