Elon Musk, CEO of Tesla, against the backdrop of a financial chart showing Bitcoin going to the moon.

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Last year, Bitcoin was below $ 5,000 at this point. It’s now over $ 50,000, though that’s only temporary. It can go back to $ 30,000 in a week as fast as it can go to another all-time high. We are sorry. I hope it didn’t bewitch it.

The reason Bitcoin has risen is because institutional investors use Bitcoin as a store of value. Tesla TSLA just bought over a billion dollars worth of bitcoin. Investment firms that have never discussed crypto with their clients before are now doing so. New products are launched in the footsteps of the Bitcoin ETF (GBTC) by Grayscale.

Brian McCarthy of Macrolens wrote this to his customers on Wednesday: “Here is the only logical use case for Bitcoin that I can think of: A decentralized, digital store of value has considerable social value. This store of value can be anything, as long as everyone agrees that it is this decentralized, digital store of value that the world longs so much for. The first mover benefit dictates that Bitcoin was anointed this way. “

That sounds about right. Nobody rates their real estate or pepperoni pizza in Dogecoin.

In 2020, cryptocurrency market cap exceeded $ 1 trillion. This year you owe it to yourself to learn how to get involved with digital assets.

“Despite the seemingly overwhelming nature of the digital asset industry, once you learn the basics, it’s not that complicated,” said Jahon Jamali, CMO, Sarson Funds. “Once you understand the basics, you will find that adding digital assets to your portfolio is one of the most important investment decisions you will ever make. That’s why we left Wall Street to bridge the gap between crypto and traditional finance. You don’t want to stand on the sidelines for this emerging industry. “

Tesla is buying bitcoin, but we’re still waiting for them to accept bitcoin as payment for one of their cars. Apparently that’s coming.

“We expect to be accepting Bitcoin as payment for our products in the near future, subject to applicable laws and initially to a limited extent, which we may or may not liquidate upon receipt,” the company said in its 2020 filing, according to Reuters .

Jeff Bezos, founder of Amazon.com Inc. and one of the richest men in the world, is researching this … [+] Crypto payments. BitPay users can spend their Bitcoin on Amazon gift cards. Photographer: Andrew Harrer / Bloomberg

© 2019 Bloomberg Finance LP

Amazon AMZN is ripe to be the first multinational to issue its own coin. Pay for services on your platform with Amazoncoin and get a discount. It’s not difficult to imagine such a thing. They are reportedly preparing to launch a “digital currency” project in Mexico led by Amazon’s Digital and Emerging Payments division.

Uber is considering adding crypto payment options, CEO Dara Khosrowshahi told CNBC on Feb.11.

BNY Mellon and Fidelity said they will allow customers to keep their crypto with them until the end of the year. No more ledgers and panic attacks if your crypto exchange is hacked.

Small businesses use it. For example, let’s go to Tampa, shall we? Best known as “Champa Bay”.

“It’s a great time to be in Tampa Bay,” said Richard Munassi, director of Tampa Bay Wave, a nonprofit that works with local startups. “I’ve been a huge Tom Brady fan since he was in high school. We’re both from California, ”he says of the Super Bowl, which won the Tampa Bay Buccaneers Super Bowl two weeks ago. “Watching its rise is very reflective of Bitcoin, with some ups and downs but getting better over time. The Bucs’ investment in Tom has paid off in Bitcoin, ”he says.

I asked him, a crypto retail investor like me, if he saw any stores in his town that accept bitcoin because I didn’t see it here in Massachusetts.

“The city’s business owners have shown that bitcoin is being accepted early on as payment, and I think it will see a surge in the next 18 to 24 months as cryptocurrency continues to become mainstream,” Munassi says. “Florida is right behind California in terms of the total number of providers using Bitcoin as a means of payment. There are several in Tampa, ”he says, citing jewelry stores, restaurants, lawyers, and common rooms for rent that are payable in BTC.

An emerging market country that played crypto very early on is Estonia. CoinsPaid is from there. You have developed a crypto-financial solution for companies. Imagine it is one of those electronic payment systems that are ubiquitous in every retail store where you swipe your credit card. CoinsPaid does that, only companies can take Bitcoin. At the moment their main market is online, mostly games and gambling.

“We are geared towards helping companies advance into the crypto world,” says CEO Max Krupyshev.

Last year they took their step. “We’ve grown from 100 customers to over 300 customers, and that number continues to grow,” he claims. “In 2019 we processed around 1% of the world’s Bitcoin transactions and now process more than 3%.”

Small businesses like this payment option too. It is a completely open way for them to collect BTC.

Adoption does happen, but it’s a learning curve.

Tesla accepts Bitcoin as a method of payment

A Bitcoin ATM can be seen at the Big Apple Tobacco Shop in New York City on February 8, 2021. … [+] (Photo by Michael M. Santiago / Getty Images)

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“Many companies miss the know-how that is required to develop and build this themselves, as there is a lot to consider. Factors such as the right blockchain technology, security measures and payment flows are based on years of experience and a deep knowledge of how the technology works, ”says Krupyshev.

Online games, casinos, forex trading, and e-commerce that require payments to be made quickly and effortlessly are now using CoinsPaid.

“Among the Asian countries, Japan has done exceptionally well at supporting Bitcoin payments in everyday life,” said Yulong Liu, director of global partnerships at Babel Finance. “I remember buying a cup of coffee with some Ethereum at the 2019 Bitcoin conference in San Francisco,” he says.

Atlanta-based BitPay works with companies that allow you to purchase gift cards using your Bitcoin. While this doesn’t mean stepping into a Tesla showroom and buying a Model Y, you can also exchange BTC for Fiat on the Mastercard MA, where you can then withdraw it and deposit it at your real-world bank or use it as a debit card. By the way, I wasn’t lucky. I’m still trying.

The day after Tesla announced in an SEC filing that it had invested $ 1.5 billion in bitcoins, the price of the cryptocurrency continued to hit new highs.

The company made it clear that part of its updated investment strategy was to look for alternative reserves like gold and crypto.

“The market is looking for an acceptable, investable hedge against the vicissitudes of a floating dollar,” said Vladimir Signorelli, director of Bretton Woods Research. Even an old supply-side investment firm is now talking to clients about Bitcoin. “If we had a stable dollar anchored in gold, cryptocurrencies would likely not reach more than $ 1 trillion in market cap,” he says.

Easy money and liquidity find their way into Bitcoin and real estate, which, despite the pandemic, are also on the rise worldwide.

Martha Stewart American Made Summit

CNBC’s Jim Cramer: Yeah, okay … buy bitcoin. (Photo by John Lamparski / Getty Images)

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At CNBC’s Squawk Box, Jim Cramer was recently asked what he thinks of all the bitcoin hype and rumors that companies are using it as a cash alternative. He said, “Every treasurer should go on the boards of directors and say,” Should we put a small portion of our money in bitcoin? “It seems like an interesting way to hedge against the rest of the environment. Nice hedge against fiat currency. I always said,” Have some gold, have some cash. “Now I say, have some cash, have some gold, own some bitcoin, “said Cramer.

This is the corner of the hedge. But where can we spend this stuff? Will it forever be something that needs to be converted into dollars, which is likely to add additional cost to the transaction?

Munassi says he used his bitcoin to pay for pizza at Pomodoro in Tampa Bay. “The continued adoption was great to see,” he says.

As Bitcoin spreads and investor demand increases, the risk of it being displaced by a better-designed, decentralized, digital store of value, says McCarthy of Macrolens. “This only increases the attractiveness of Bitcoin in a self-reinforcing way. Either that or it’s the world’s biggest pump and dump ever. “