Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
The best moment to buy or accumulate any digital asset is when the prices are low, and this may be a perfect time for corporate investors to follow Tesla’s Bitcoin investment move and get on the train.
Daniel Ives, a Wedbush Securities analyst, has noted that the $1.5 billion bet in Bitcoin (BTC) by electric vehicle manufacturing behemoth, Tesla Inc (NASDAQ: TSLA) will have a dramatic impact on corporate adoption of the digital asset. Speaking in an interview with CNBC’s “Squawk Box” on Monday, Ives noted that the automaker’s exposure to the premier digital currency is “not just a fad,” but part of a long-term strategy that is backed by both an investment and business thesis respectively.
He said he believes the Elon Musk-led company will “double down on its Bitcoin investment,” implying a possible increase in the company’s portfolio, and in the acceptance of the cryptocurrency as a form of payment.
“No doubt this is something that Musk and Tesla – they’re going to dive into the deep end of the pool on Bitcoin because they’re not just doing it from an investment perspective but from a transaction perspective,” Ives said.
According to Wedbush Securities, about 3 to 5% of public companies are likely to join Tesla in securing their treasuries using BTC in the next 12 to 18 months, but the engagement with Bitcoin will likely be limited just investments.
Tesla’s potential profit on BTC at the upper end of its all-time high above $58,000 is also an attractive call for other public companies to make similar decisions.
Good Time to Follow Tesla’s Bitcoin Investment Move?
The global cryptocurrency market is undergoing a bearish correction with BTC leading the dip. As many have often touted, the best moment to buy or accumulate any digital asset is when the prices are low, and this may be a perfect time for corporate investors to follow Tesla’s Bitcoin investment move and get on the train.
BTC is down by 12.60% at the time of writing according to CoinMarketCap, and each of the coins is exchanging hands at $48,596.24. The dip is all-encompassing, as Ethereum (ETH), XRP, Chainlink (LINK), Polkadot (DOT), and other altcoins not spared in the downturn.
Many analysts on crypto Twitter believe the correction is necessary in order to stir a big dive toward new price discoveries. There have been numerous comforting comments about the market with Bitcoin bulls advising their followers to “buy the dip,” a term that is much common when the market makes such dramatic twists.
While the entire digital currency ecosystem awaits the journey back into the glory days, a big announcement from a new institutional investor will not be surprising.