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Musk's message is clear: "Bitcoin is a means of payment," says Mohamed El-Erian

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Elon Musk's move into bitcoin marks an unprecedented turning point for the creation of Satoshi Nakamoto and for the cryptocurrency market in general and sends a strong message to the corporate world: "Bitcoin is a payment method". The purchase of 1.5 billion dollars in bitcoins has skyrocketed the price of the currency, but the truly disruptive fact is that the founder of Tesla tells the world that anyone can buy one of his vehicles in exchange for a bitcoin, experts emphasize.

At a time when the debate on whether or not cryptocurrencies are real currencies that can be used as a payment method or simply assets that serve as a store of value – a position defended by a majority of analysts and investors-, "Musk's gesture clearly supports the fact that bitcoin is real money because all currencies are ultimately store of value”Says Mohamed El-Erian, chief economist at Allianz.

“Money is a form of payment. So yeah, that will give more momentum. As for the reaction, there will be everything. Some will see it as visionary, others will say "wait, if I want to invest in bitcoin, I will do it directly, I don't need Tesla to do it for me." … So you will see a whole range of reactions, but for bitcoin holders, this is good news, ”El-Erian emphasizes.

"All companies should study how to accept digital currencies, digital paymentsAs part of his business scheme, "says Mike Novogratz, founder of Galaxy Digital," It's not that difficult. It's what customers want, it's where the world is moving. And that's why you will see all the companies looking at how they could (accept digital currencies), from McDonald's to Bojangles, whatever. "

Musk's announcement is the icing on the cake of a trend that began to be noticed in 2020 and that was one of the main engines of the rally of more than 300% of the crypto currency last year. Investing in bitcoin by companies like MicroStrategy, Square, most recently MassMutual, who bought $ 100 million worth of bitcoins this December or from the British manager Ruffer, which allocated 2.5% of its portfolio to the Nakamoto currency, in reaction to low interest rates, stimulus from central banks and a struggling dollar fueled the rises. More recently, BlackRock, the largest firm in the industry by volume of assets worldwide, announced that it will invest in cryptocurrency futures in two of its funds: the BlackRock Strategic Income Opportunities and the BlackRock Global Allocation Fund.

But the acceptance of bitcoins as a currency is truly innovative, since previously only Paypal had announced a service that allowed its users to make payments using their cryptocurrencies. Tesla is backing bitcoin at the corporate level (The strategy was approved by the Board and the Audit Committee), highlights Craig Erlam, strategist at Oanda. For this reason, he believes that other companies "may be tempted to follow him", although in the opinion of this expert "the vast majority will be too cautious to expose themselves to the volatile world of cryptocurrencies."

Another aspect to pay attention to, according to Naeem Aslam, an analyst at Avatrade, is "whether other cash-rich companies like Apple, Microsoft, Facebook are also beginning to be interested in bitcoin as an alternative investment. "" Even less than one percent of your cash in bitcoin would be a huge amount, "he says." If this strategy becomes the main trend, we could see the demand-supply equation spiral out of control as, after all, there are only a limited number of bitcoins. "

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