Tesla cars can now be bought with Bitcoin, reveals Elon Musk

Tesla customers can now buy their cars with Bitcoin, company chief Elon Musk has revealed in a Tweet. Mr Musk, a well known Bitcoin enthusiast, has invested heavily in the digital currency and bought $1.5 billion worth of bitcoin last month. Bitcoin, the world’s biggest digital currency, rose more than four per cent after Musk’s tweet and was last trading at $56,429.

Mr Musk tweeted Tesla would be running its own internal software to handle Bitcoin payments, which “operates Bitcoin nodes directly”. Nodes are the computers that process Bitcoin transactions.

Mr Musk further revealed that: “Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat [government-controlled] currency”.

In the US, orders for new Tesla cars can now be secured with the equivalent of a $100 deposit in Bitcoin. The option would be available outside the United States later this year.

However, Bitcoin’s value rapidly moves up and down – meaning the cryptocurrency price of the car could change day to day. For example, Tesla’s terms and conditions say if a refund is needed, it can pay in either the exact amount of Bitcoin paid or in US dollars based on the dollar price of the car – whichever it wants.

Source: BBC