Tesla's $1.5bn investment in bitcoin may serve as a boon to the crypto industry. "Money" is commonly understood as something that is a store of value, a unit of account, and a medium of exchange. Tesla's investment and acceptance for payment is an acknowledgment and commitment to bitcoin as at least two of these functions - a store of value and medium of exchange.
Bitcoin has, as of late, experienced a surge in value most likely attributable to increased demand by institutional investors and associated regulatory accommodation. If history serves as precedent, this significant move by Tesla may draw additional institutional and mainstream adoption of bitcoin as both an investment option and convenient means of payment. As the industry goes, so go their regulators. The Biden administration may feel additional pressure to hasten its efforts to regulate and supervise the industry as it continues to ramp up and take flight.
Tesla has invested $1.5bn in bitcoin and plans to begin accepting it for payment in one of the highest-profile endorsements of the cryptocurrency sector by a major US company.