Grayscale CEO Predicts Mass Purchases of Bitcoin by Companies Due to Tesla Investments

Tesla’s investment in Bitcoin will serve as a good example for the leadership of many other companies who will also want to join the crypto race. Michael Sonnenshein, CEO of Grayscale Investments, is convinced of this.

During an interview on Squawk Box, Sonnenstein stated that Tesla was not the first major company to add Bitcoin to its balance sheet. However, it will definitely not be the last.

By tradition, let’s start with an explanation. The big news this week is Tesla’s investment in Bitcoin. According to company employees, the management invested $ 1.5 billion in the first cryptocurrency, and they did it in January 2021. Thus, the manufacturer wants to join the financial system revolution and at the same time diversify its portfolio.

But the company’s efforts did not end there. Employees have also expressed a desire to accept Bitcoin as payment for their cars. Such an offer will be limited – at least at first, in addition, it will not be available in all countries. However, the implementation of this idea in any case pleases.

Where do investors invest?

Sonnenstein cited Elon Musk, MicroStrategy CEO Michael Saylor, and Twitter CEO Jack Dorsey, who had previously invested significant amounts in Bitcoin. The expert noted that this trend is likely to continue in the future. Here is his quote, in which he shares his attitude to what is happening. The cue is from Decrypt.

You will see how many other forward-thinking leaders and disruptive companies are really realizing that the question has really moved from why to why not.

That is, due to the example of world famous companies, other organizations now have practically no arguments left in favor of refraining from investing in cryptocurrencies. Previously, the financial departments of companies could really have distrust of Bitcoin and other coins, since blockchain technology is relatively new, in addition, non-existent sins are often attributed to it. However, now the leaders of the world, including the richest man on the planet Elon Musk, are investing in BTC. This means that you should not be afraid.

David Waxman, CEO and founder of the Wachsman consulting company, agreed with Sonnenshein. Here is a quote from him.

Musk’s investment in Bitcoin will significantly accelerate the feedback loop on institutional implementation that legitimizes cryptoassets. Signs of institutional fear of missing out on cryptocurrency gains as the next major asset class are already visible, and it will be interesting to see if the move prompts a wave of other businesses and institutions to follow Tesla’s lead.

In addition, Sonnenschein is confident that the company’s decision to accept the main cryptocurrency as a means of payment for its goods and services will benefit both Bitcoin and Tesla itself. It will also serve as a precedent for other firms to gain market share that is still very competitive. True, the question here is different – will Bitcoin really become a popular means of payment?

Recall that the cryptocurrency, due to its relatively long block confirmation time and high volatility, is suitable only for large purchases. That is, if buying a new Tesla for bitcoins is still normal, then BTC is unlikely to be used for small everyday purchases. It also serves as a kind of obstacle to the full adoption of the digital asset.

We checked the actual data: yesterday, the average commission for a Bitcoin transaction was equivalent to $ 22.5. Naturally, this is not enough to send a large amount, but paying for coffee or food in BTC with such a level of commissions will be quite costly.

As it turned out the day before, the possibility of a large round of investments in Bitcoin is also being considered by the Twitter leadership. In particular, the CFO of the platform, Ned Segal, confirmed that the company’s representatives are considering the possibility of investing in BTC. Here is a quote from him.

We thought for a long time in advance about how we can pay employees if they ask to pay salaries in Bitcoin, how we can pay vendors if they ask for payment in BTC, and whether we should keep bitcoins on our balance.

That is, cryptocurrencies are in the focus of the platform’s management. Perhaps in the near future we will hear about investing in BTC, including from Twitter employees.

In general, the creator of the social platform Jack Dorsey has been supporting the idea of ​​cryptocurrencies for quite a long time, and recently even shared proof of the launch of his own full Bitcoin node. In any case, the influx of as many companies as possible into the crypto market will definitely have a positive effect on the prospects for BTC.

We believe that Sonnenschein’s forecast will come true, and rather quickly. Tesla’s investment in Bitcoin has had a really good impact on the reputation of the cryptocurrency and changed the attitude of many investors towards it. Now they will want to watch out for this train and also join the investment in blockchain assets. So the coming years will definitely be interesting for the cryptocurrency industry.

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