Bitcoin heads for $50,000 as Tesla’s £1bn investment sparks interest in the cryptocurrency
Bitcoin is fast approaching $50,000 as the cryptocurrency revelled in Tesla’s huge £1.1billion investment.
The price climbed as high as $48,215, taking its gains so far this week to almost 30 per cent.
Bitcoin was below $5,000 last March but has soared as institutional investors search for places to store their wealth and retail traders ride the wave. Observers are split over whether it will keep rising or is a bubble that will burst.
Crypto boom: Bitcoin was below $5,000 last March but has soared as high as $48,215 as institutional investors search for places to store their wealth and retail traders ride the wave
On Monday electric car maker Tesla, whose founder is Elon Musk, said of its £1.1billion investment that it had been looking to move into digital currencies.
Customers can buy Tesla cars using the currency, and there are murmurs that other big tech giants could soon follow, with Apple and Facebook tipped as investors.
Bitcoin fans said Apple could create a sizeable market if it were to develop its Apple Wallet into a crypto exchange.
Vijay Ayyar at exchange Luno said: ‘Imagine if 100 companies start putting even 1 per cent into bitcoin, what that is going to do to demand and supply.’
But others urged caution. Laith Khalaf, analyst at AJ Bell, added: ‘Putting money into bitcoin is more speculation than investment.’