Tesla has just bought a whole lot of bitcoin for itself, but according to a report by JPMorgan, people shouldn\u2019t expect this move to be repeated by other major companies, as bitcoin is still too volatile to take seriously.<\/p>\n
The electric car company owned and operated by South African entrepreneur Elon Musk recently made a real dent in the crypto space when it decided to purchase roughly $1.5 billion worth of the world\u2019s number one digital currency by market cap. The trading world saw this as a huge step forward, and the news got every investor huffing and puffing. The currency rose to about $47,000 per unit, and things were looking better than ever for BTC.<\/p>\n
However, JPMorgan is expressing doubt that Tesla\u2019s actions will lead to a string of similar buys from other companies. The fact is that while bitcoin has been on a bull run of sorts over the past year, the currency is still quite vulnerable to price swings and fluctuations, and this sends ripples of fear down many company\u2019s spines.<\/p>\n
In the document, analysts with the financial giant explain:<\/p>\n
\nThe main issue with the idea that mainstream corporate treasures will follow the example of Tesla is the volatility of bitcoin.<\/p>\n<\/blockquote>\n
Already, we are beginning to see shades of truth in these statements given that companies such as General Motors \u2013 another car company that serves as one of Tesla\u2019s top competitors \u2013 says that it has virtually no interest in engaging in bitcoin trades or investments as of late. However, the company has made it clear that it will monitor customer interest and consider potentially allowing bitcoin and crypto payments for goods and services in the coming future.<\/p>\n
Still, the idea that a billion-dollar company such as GM remains so resistant to allocating some of its reserves in bitcoin suggests that institutions are still somewhat afraid when it comes to accepting BTC as a mainstream financial tool.<\/p>\n
Perhaps Things Will Come Slowly<\/h2>\n