Cryptocurrency News

Coinbase Assisted Tesla in Buying BTC

By February 23, 2021 No Comments

Key highlights:

  • The news of Tesla’s investment in Bitcoin was released earlier this month, and it had a big impact on the crypto market
  • According to an anonymous source, Coinbase helped Tesla in buying Bitcoin
  • Now, there are rumors about other major companies also investing in BTC

Coinbase is a popular and regulated cryptocurrency exchange in the United States. Although it’s known as one of the most popular platforms for retailt cryptocurrency investors, Coinbase also helps large firms to buy BTC and invest in cryptocurrencies. According to a report from The Block, Coinbase also helped Tesla with its blockbuster $1.5 investment in Bitcoin

Tesla said that the goal of their Bitcoin investment was to diversify their portfolio and have the potential of better returns. Fiat currencies are depreciating due to the recent pandemic and the economic and monetary policies that governments around the world adopted to fight it. As a result, many major companies are considering buying safe havens like Bitcoin.

How did Tesla buy Bitcoin?

According to an anonymous source, Coinbase helped Tesla in buying Bitcoin, but  Tesla and Coinbase are yet to confirm the report. According to the source, Coinbase facilitated the BTC investment for Tesla at the beginning of February, and the process took some days to complete. It was very similar to the process that Coinbase did for MicroStrategy’s investment in the king of cryptocurrencies. Coinbase’s technology allows clients to make large cryptocurrency purchases without making a big impact on the market.

The source who spoke to The Block also said that more than 5 Fortune 500 companies are using Coinbase’s services. Coinbase is a regulated exchange, and it might be the safest option for large firms to buy BTC.

Before the announcement of Tesla’s investment in Bitcoin, there were rumors about Elon Musk’s interest in buying BTC. With the price of BTC above $50,000, there’s no shortage of rumors about large companies entering the crypto space soon.

Corporate and institutional investments in Bitcoin can have a snowball effect and attract a massive amount of capital to crypto space. It can mean higher prices for BTC due to the simple rule of supply and demand. Whatever happens next, it’s hard to deny that now is a very exciting time for cryptocurrency fans and investors.