As we rapidly advance into a digital world, digital money or cryptocurrency is bound to catch up with the times. Bitcoin, a name you must have heard a lot over the past few years, is back in the news.
Also Read: After Tesla’s $1.5 billion investment, Bitcoin skyrockets to record-high $45,000
Cryptocurrency essentially means there is no physical form of money. The transactions between individuals and organisations take place entirely online, through the internet.
Bitcoins, one of the most popular forms of digital currency, has gained quite a controversial reputation. Mistrust or simply preferring a familiar physical currency has prevented Bitcoin from climbing the ladder of stable credit.
Also Read: Germany struggles to crack password of $60 million worth of Bitcoin seized from fraudster
But recently, in a surprising turn of events, Tesla run by world’s richest man Elon Musk went ahead and invested $1.5 billion in Bitcoin and said they might soon accept payment through it.
It said that since the decision was approved by its audit committee it had “invested an aggregate $1.5bn in bitcoin under this policy and may acquire and hold digital assets from time to time or long term”.
A bitcoin is a computer file, which is stored into a digital wallet application on a device. When transactions are made, each transfer or payment is recorded in a blockchain, a public list. This enables the tracing of the history of Bitcoins transactions barring individuals from spending coins they don’t own, duplicating it or undoing transactions.
Also Read: Tesla CEO Elon Musk breaks his Twitter silence with Dogecoin as its price surges
As expected, Tesla’s investment in bitcoin sent the value of the digital currency on a whopping 14% high.
Would you invest in cryptocurrency? Tell us in the comments!