Tesla is backing Bitcoin – what this means for crypto exchanges

Bitcoin is probably the most popular cryptocurrency in the entire market and by far the most valuable one, serving as the flagship for the crypto industry. Such a role brings Bitcoin to the spotlight on a regular basis but, in recent times, there is a player taking this industry by storm, contributing to a stellar valuation of the coin: Elon Musk.

The CEO of Tesla seems to be quite a fan of the crypto world in his social media, often issuing comments about certain coins and the market in general. However, most recently he seems to be focused on Bitcoin, so much so that his comments are usually followed by a valuation of the cryptocurrency.

Still, no comment from Musk can contribute more to Bitcoin’s evaluation than the move his company made earlier this week, when its annual report to SEC report revealed that Tesla not only bought $1.5 billion worth of Bitcoin, but also plans to start accepting it as payment in the near future:

In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns (…). As part of the policy, we may invest a portion of such cash in certain specified alternative reserve assets. Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future (…)

In reaction to the news, Bitcoin renewed historic highs jumped more than 10% quite shortly after that, leading other cryptocurrencies that are somewhat dependent on it, such as Ethereum or XRP, to go up as well. The price even slightly surpassed $48,000 and has since remained more steadily around the $45,000 mark.

The fact that one of the most popular companies and CEOs in the world started to back Bitcoin and, in a broader sense, cryptocurrencies, is a clear sign that the crypto world is getting more acceptance and, even more important, more adoption, which is the best possible news for any crypto exchange.

With more adoption, the number of people wanting to exchange the coins will obviously increase, so this brings a massive window of opportunity for exchanges to make money – not only the ones that are established, but also new ones that may appear.

This is especially true when we consider just how easy it can be for anyone to start an exchange, and a great way of doing so is to use an open-source solution or, in other words, a solution that has all the code available for everyone to see, which means it can be checked and verified for security, usability and so on.

With the advent of cryptocurrency, there are a lot of white-label providers of crypto exchange software to choose from. bitHolla, for example, has a great open-source crypto exchange software, with the code fully available on GitHub, called HollaEx Kit. It ships with several tools that make the initial steps particularly easy, as well as the rest of the process.

The way the market reacted to the moves of Elon Musk and Tesla is a telltale sign that these are just the first steps of the crypto industry towards mass adoption and usage. This means that there is no better time to start looking at it from an investment standpoint, especially to put that investment In the creation of a new exchange, than now.

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