Tesla supports Bitcoin to pay for car purchases

As a cryptocurrency supporter, Elon Musk has previously announced that Tesla will purchase 1.5 billion U.S. dollars in cryptocurrency. Of course, the main purchase here is Bitcoin.

After the announcement of the news at that time, the price of Bitcoin was directly approaching $50,000. At the same time, Tesla announced that in the future the company will support users to pay for cars through Bitcoin.

After a period of development and docking, Tesla has now launched the Bitcoin payment function, and initially only supports users in the US to pay via Bitcoin.

Elon Musk said that Bitcoin payments will be expanded to more areas in the future so that consumers around the world can buy Tesla’s electric cars through Bitcoin.

Tesla bitcoin

“Tesla Model X” by Don McCullough is licensed under CC BY 2.0

It is well known that the price of cryptocurrencies such as Bitcoin is extremely volatile, so sometimes the price is high but it may soon reach a low point that is not conducive to consumer payment.

Therefore, Tesla has taken the same measures as other cryptocurrency payment service providers. When consumers make payments, they are calculated based on the real-time price of Bitcoin.

After placing the order, confirm the number of bitcoins to be paid, and then consumers can transfer bitcoins to the payment address provided by Tesla through their bitcoin wallets.

Of course, the only loss may be the transfer fee of Bitcoin. The transfer fee needs to be paid by the consumer. The specific arrival time is subject to the block data.

Most cryptocurrency payment providers sell cryptocurrencies such as Bitcoin in real-time after receiving payment, and then the platform provides merchants with fiat currency settlement to avoid fluctuations and losses.

This approach is also a common practice in the industry at present, so price volatility may lead to loss of collection. If the platform does not sell in time, the risk will be very huge.

Tesla’s approach is completely different. The bitcoins that consumers pay to Tesla will be preserved by Tesla, and Tesla will not sell them to legal tender.