The electric car maker, Tesla have announced that they are to soon start accepting payments for their vehicles in Bitcoin.
The car maker headed by Elon Musk are planning to acept the digital payments which was revealed in a new strategy which was filed with the US Securities and Exchange Commission on Monday.
The Californian company said that their investment in digital currency and all other “alternative reserve assets” could grow. Tesla have already bought $1.5bn of Bitcoin and could “acquire and hold digital assets” in the future.
“I think we will see an acceleration of companies looking to allocate to Bitcoin now that Tesla has made the first move,” said Eric Turner, vice-president of market intelligence at cryptocurrency research firm Messari.
“One of the largest companies in the world now owns Bitcoin and by extension, every investor that owns Tesla, or even just an S&P 500 fund, has exposure to it as well.”
However, Neil Wilson, chief market analyst for Markets.com, warned Bitcoin was a “very volatile” cryptocurrency.
“Tesla is now starting to take on big [foreign exchange] risk – this may not worry a lot of investors, but some conservative types might be concerned,” he said.
Shares in Tesla were up and Bitcoin breifly hit a new all time high as it hit 14%.