Tesla believes in BTC’s potential as an alternative to cash

Tesla, one of the world’s leading electric car companies owned by billionaire Elon Musk, has declared that it sees BTC as a real alternative to cash.

In its latest report to the United States Securities and Exchange Commission, the SEC, Tesla stated that it believes in cryptocurrencies not just as an investment strategy, but as a form of payment currency.

“We believe in the long-term potential of digital assets both as an investment and as a liquid alternative to cash.”

The statement in the report took the market by surprise. This is because it is the first time that a large US company has questioned the future of the dollar and lists the potential of crypto-assets as legal tender.

Tesla believes in BTC’s potential, but…

Furthermore, in the report, Tesla did not rule out selling its Bitcoins. Instead, he said he can buy even more.

“As with any investment and in accordance with the way we manage fiat currency-based cash and cash equivalent accounts, we may increase or decrease our holdings in digital assets at any time based on business needs and our view of the market and environmental conditions,” he said.

Elon Musk’s company also pointed out the deficiencies of the digital asset. they consider its long-term adoption by investors, consumers and companies, for example, to be unpredictable. Something that adds to its lack of physical form, its dependence on technology for its creation, existence and transactional validation, as well as its decentralization, they indicated.

“As intangible assets with no centralized issuers or government bodies, digital assets have been, and may in the future be, subject to security breaches, cyber attacks or other malicious activities, as well as human error or computer failure that could result in loss or destruction. of private keys needed to access such assets,” the company said.

On the other hand, the company acknowledged the volatility of cryptocurrency prices and that this could negatively affect its profitability.

Despite this, Tesla believes that crypto-assets allow you to maximize long-term returns due to their potential. Tesla currently has 42,902 Bitcoins on its balance sheet.