Rolling coverage of the latest economic and financial news as bitcoin extends its gains following a big investment from Tesla
- Tesla buys $1.5bn in bitcoin, pushing price to new high
- Tesla should stick to what it’s good at – and that isn’t bitcoin
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Bitcoin enthusiasts are celebrating a fresh jump in the cryptocurrency’s value. It rose further overnight after an initial surge on Monday, when Tesla disclosed its own $1.5m investment in bitcoin and said it is likely to start accepting it as payment for its cars in the future.
Companies are holding big cash piles in their bank account, which is not earning them much at all. These cash rich companies do not know what they should do with their cash. Hence a new trend could be emerging, which has been put in motion by Tesla.
It is true that Tesla’s investment in Bitcoin is tiny compared to its market cap or its balance sheet. But the important point to pay attention to here is if other cash rich companies like Apple, Microsoft, Facebook also begin to invest their cash in Bitcoin as an alternative investment.