Bitcoin is back, for now.
Bitcoin Boom
Tesla purchased bitcoin worth $1.5 billion in February as an investment. It also announced that it would accept digital currency for payment for its cars.
At least, the market seems to think so. Bitcoin has reached new heights and crossed the $60,000 threshold. This makes Tesla's treasure chest of 42.902 Bitcoin worth $2.5 Billion.
Insider reports that Tesla has raised $1 billion through its Bitcoin investments. This is a remarkable vindication of the decision by carmakers to invest in cryptocurrency.
Ups and Downs
The volatility in Bitcoin's value has been quite high throughout 2018, and this is due to Elon Musk's shifting stance on the currency. According to estimates, Tesla had also risen $1 billion in February.
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Musk made a bizarre detour in May's Twitter announcement, citing the environmental destruction associated with Bitcoin mining as the reason for his decision to suspend vehicle purchase using the digital currency.
Musk's loyal fans were furious at the sudden drop in Bitcoin's value.
Recent events have seen Bitcoin fall again due to China's crackdown on cryptocurrency mining transactions.
The digital currency has been rallying this month, climbing closer to the April record highs. It is still unknown why, but it appears that more financial institutions around the globe are becoming more interested in the digital currency.
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Tesla's Bitcoin fortunes may not last forever, as has been the case in the past. The cryptocurrency market is notoriously volatile, and there could be another crater just around the corner.
READ MORE: Elon Musks Tesla invests $1 billion in bitcoin as cryptocurrency rises [Insider]
Bitcoin CEO JPMorgan Says Bitcoin is Worthless as Its Price Soars
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