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Bitcoin price LIVE – Shares fall after record high, plus Tesla considers limits on Elon Musk cryptocurrency investments

THE price of Bitcoin is breaking all-time records after Elon Musk revealed Tesla invested $1.5 billion in the cryptocurrency.

This morning the cryptocurrency soared beyong $48,000 on the cyptocurrency markets as investors raced to take advantage of an inevitable post-Musk surge.

In a statement yesterday, Tesla revealed it would soon begin accepting payments in Bitcoin, and the world's richest man admitted the firm had made a massive investment of its own in the surging online currency.

Meanwhile another tweet from Musk sent another crytocurrency soaring after he described the once-mocked Dogecoin currency as "the future".

The coin, which began as a joke in 2013, has surged in value by 1,250% over the past year after a huge number of investors decided to simultaneously pump cash into the coin to make it a legit trading option.

Follow the latest Bitcoin and cyptocurrency news on our rolling live blog below..

  • Debbie White

    TEEN CAGED FOR USING BITCOIN TO BUY ECSTASY

    A teenager drug dealer has been jailed after he used Bitcoin to buy ecstasy pills on the dark web, which were then smuggled into the UK in DVD cases.

    Dylan Bailey, 19, used the cryptocurrency to buy the drugs from a Dutch supplier who posted them to his home address.

    He was snared when packages of DVD cases were seized at Royal Mail's international logistics centre in Coventry last February.

    Inside the cases were 83 pink pills embossed with the Coca-Cola logo.

    Police raided Bailey's home in Nuneaton, Warks., and seized his phone which contained messages to dealers and customers.

  • Debbie White

    PAYPAL STOCK HAS ALSO SURGED

    PayPal Holdings joined the cryptocurrency market in October, allowing customers to buy, sell and hold bitcoin and other virtual coins using the US digital payments company's online wallets.

    Its stock has surged 21% in 2021.

  • Debbie White

    OTHER FIRMS RIDING THE BITCOIN SURGE

    Companies with much more significant exposures to bitcoin in proportion to their overall stock market value than Tesla have also rallied.

    Their boost follows Tesla's disclosure, increasing already strong stock gains driven by the cryptocurrency's recent rally.

    MicroStrategy, whose CEO Michael Saylor is an avid bitcoin bull, surged 22% on Tuesday, bringing its gain this week to over 50%, and it has surged over 200% so far in 2021.

    The business intelligence software company has bought about 71,079 bitcoins, now worth over $3billion and equivalent to over a quarter of its $11.8 billion stock market value.

  • Debbie White

    TESLA DIPPED ON TUESDAY

    Tesla gained after disclosing its Bitcoin investment on Monday.

    But the American electric vehicle firm dipped 1.6% on Tuesday, leaving its gain in 2021 at 20%.

    This compares to the S&P 500's 4% rise.

  • Debbie White

    PRICE OF BITCOIN HAS QUADRUPLED RECENTLY

    The price of bitcoin has quadrupled in the past four months.

    The rise has been partly pushed by interest from institutional investors, making it surge far beyond record highs set in 2017.

    And some investors view it as a hedge against inflation, says news agency Reuters.

  • Debbie White

    BITCOIN HITS RECORD HIGH ON TUESDAY

    The price of bitcoin hit a record high over $48,000 on Tuesday, February 9.

    This was part of a two-day surge after Tesla said on Monday that it had bought the digital currency and would soon accept it as a form of payment for cars.

  • Debbie White

    ELON MUSK SHARES BITCOIN/CHUCK NORRIS MEME

    Elon Musk has tweeted more on Bitcoin, using American martial artist and actor Chuck Norris.

    A handful of bitcoin-related companies listed on US stock exchanges have been boosted by this week's revelation that Tesla CEO Musk, a fan of cryptocurrencies, added bitcoin to the electric car maker's balance sheet.

    Tesla's bitcoin purchase amounts to a minor bet for the fast-growing electric car company with an $800billion stock market value.

    However, it bolstered the digital currency's emerging credentials as a mainstream financial asset.

  • Debbie White

    MUSK'S BITCOIN BET FUELS GAINS

    Shares of companies that have invested in bitcoin have vastly outperformed on Wall Street in 2021.

    They're extending their gains thanks to Tesla's dramatic $1.5billion bet on the soaring digital currency, reports Reuters.

  • Alex Winter

    MONEY EXPERT WARNS WOULD-BE INVESTORS TO BE WARY

    While Bitcoin's value has recently soared, its value is extremely volatile and it has dropped to as low as around £300 in the past – so you shouldn't invest if you can't afford to lose the cash.

    Money Saving Expert Martin Lewis previously urged the public to be cautious if they want to invest. 

    Speaking on the The Martin Lewis Money Show, he said: "Is it safe? Well, some people have lost money in their wallets.

    "Like gold it can be stolen, and cryptocurrency is a bit like an equivalent to gold as it's a store of value of what people are putting in."

  • Alex Winter

    WHAT IS BITCOIN?

    Bitcoin, often described as a cryptocurrency, a virtual currency or a digital currency, is a type of money that is completely virtual.

    It's like an online version of cash.

    You can use it to buy products and services, but not many shops accept Bitcoin yet and some countries have banned it altogether.

    Each Bitcoin is basically a computer file which is stored in a "digital wallet" app on a smartphone or computer.

  • Alex Winter

    SO, WHAT HAPPENED YESTERDAY?

    The big story of the day was bitcoin's new record high of more than £48,000 yesterday morning.

    The cryptocurrency extended its gains overnight after Tesla disclosed its own $1.5bn investment in bitcoin and said it is likely to start accepting it as payment for its cars in the future.

    Some investors began to cash out – that means bitcoin was trading at around $46,300 on Tuesday afternoon.

  • Joseph Gamp

    BITCOIN MOVED CLOSER TO $50,000 YESTERDAY

    Bitcoin moved closer to $50,000 for the first time on Tuesday, while the dollar declined as equity traders monitored anticipated US fiscal stimulus and Covid-19 vaccine developments.

    Asia's main stock indices closed stronger, with Tokyo hitting a 30-year high, while the Dow Jones index edged down from an all-time high following a mixed session in Europe.

    Bitcoin briefly pushed to a record-high of $48,215.83 after winning a huge boost Monday from news that Elon Musk's electric carmaker Tesla had invested $1.5 billion in the cryptocurrency.

    It later eased back to a level near $47,335.

  • Joseph Gamp

    ‘RISKY’ TRADING

    THE financial watchdog has warned over “risky” trading tips being shared on TikTok.

    It follows a buying frenzy for Gamestop shares and cryptocurrencies among amateur traders.

    Traders organising themselves on Reddit bought into Gamestop sending its share price surging, and causing professional hedge funds to lose millions.

  • Joseph Gamp

    BITCOIN’S MARKET VALUE IS NOW WORTH AROUND $690BILLION

    Bitcoin is has a market value of around $690billion and the price of a single bitcoin hit record highs earlier this year of $40,000.

    Earlier in January, the highest price Bitcoin reached was $41,940, but that number dropped slightly below $30,000 last week, CNBC reported on January 29.

  • Joseph Gamp

    ELON MUSK SAYS BITCOIN IS ‘FUTURE CURRENCY OF EARTH’

    TESLA chief executive Elon Musk gave a boost to Bitcoin’s price 10 days before investing $1.5bn in the cryptocurrency, but adding a “#bitcoin” tag to his Twitter profile page.

    He removed the tag a few days later but has continued talking up Bitcoin and other cryptocurrencies such as dogecoin to his 46 millions of followers.

    Musk said a week ago that Bitcoin was “on the verge” of being more widely accepted by investors. 

    Yesterday, he went as far to describe cryptocurrency as the future currency of Earth.

  • Joseph Gamp

    SHOULD APPLE SUPPORT BITCOIN?

    APPLE should allow users to buy and sell cryptocurrency, a report from RBC Capital Markets says.

    The report says it would allow the technology giant to immediately gain market share

    The claim, as reported by Reuters, suggests that Apple could make it easier for individual buyers to purchase cryptocurrency assets such as Bitcoin,  Etherium, and DogeCoin and integrate directly into its Wallet app on iPhone and iPads.

    The move would make the United States a global leader in cryptocurrency and lessen the possibility of the technology being shut down by governments.

  • Joseph Gamp

    ELON MUSK’S SUPPORT OF BITCOIN ‘TAKEN SERIOUSLY’

    Elon Musk’s driving up of the cryptocurrency price with a $1.5billion purchase has raised eyebrows in financial circles.

    “If any lesser mortals had made the decision to put part of their balance sheet in Bitcoin, I don’t think it would have been taken seriously,” said Thomas Hayes, managing member at Great Hill Capital LLC in New York.

    “But when the richest man in the world does it, everyone has to take a second look.”

  • Joseph Gamp

    TESLA TO ACCEPT BITCOIN AS PRODUCT PAYMENT

    TESLA said in its public filing that it would soon begin accepting bitcoin as a form of payment for its products, however warned warned investors the value of its digital assets could fluctuate wildly.

    Tesla said: ”The prevalence of such assets is a relatively recent trend, and their long-term adoption by investors, consumers and businesses is unpredictable.”

    “Moreover, their lack of a physical form, their reliance on technology for their creation, existence and transactional validation and their decentralization may subject their integrity to the threat of malicious attacks and technological obsolescence.”

    “While many on the Street have discussed the prospects of this move for Tesla, this morning’s news formalizes the strategy of Musk and Tesla diving into the deep end of the pool of bitcoin and crypto,” Wedbush Securities analyst Dan Ives said in a research note.

  • Joseph Gamp

    TELSA INVESTMENT HAILED AS A ‘GAME-CHANGER’

    Analysts have weighed in on Tesla’s Bitcoin investment, with some saying it could be a game-changer for the cryptocurrency.

    “I think we will see an acceleration of companies looking to allocate to Bitcoin now that Tesla has made the first move,” said Eric Turner, vice-president of market intelligence at cryptocurrency research firm Messari.

    “One of the largest companies in the world now owns Bitcoin and by extension, every investor that owns Tesla, or even just an S&P 500 fund, has exposure to it as well.”

  • Joseph Gamp

    INVESTORS BETTING BITCOIN COULD REACH $100,000 IN ONE YEAR

    BITCOIN investors, which include top hedge funds and money managers, are betting the virtual currency could more than quintuple to as high as $100,000 in a year.

    It’s a wager that has drawn eye-rolls from skeptics who believe the volatile cryptocurrency is a speculative asset rather than a store of value like gold, reports Reuters.

    Bitcoin is now within sight of its all-time peak of just under $20,000 hit in December 2017. It debuted in 2011 at zero and was last trading at $18,415.

    oing from $18,000 to $100,000 in one year is not a stretch, Brian Estes, chief investment officer at hedge fund Off the Chain Capital, said.

    “I have seen bitcoin go up 10X, 20X, 30X in a year. So going up 5X is not a big deal.”

  • Joseph Gamp

    WHAT IS BITCOIN FOUNDER'S NET WORTH?

    If Nakamoto – which many experts believe is a pseudonym – does exist, he could be the world’s richest person considering how much the value of Bitcoin has skyrocketed.

    The current Satoshi Nakamoto net worth in 2021 is potentially $40billion, according to New Trader U.

    This estimate is based on the early bitcoin wallets that are believed to belong to him that still hold 980,000 bitcoins valued at approximately $41,000 per bitcoin.

    Even though this is only an estimate and the exact net worth is not known for sure, it is believed to be growing even more after Tesla invested $1.5billion in the cryptocurrency.

  • Joseph Gamp

    WHO IS BITCOIN CREATOR SATOSHI NAKAMOTO?

    SATOSHI Nakamoto may be getting even richer after Tesla bought $1.5billion worth of Bitcoin.

    But while the identity of the Bitcoin creator remains unconfirmed, the search to unmask him has a very colourful history.

    Read more here.

  • Joseph Gamp

    5 risks of crypto investments

    THE Financial Conduct Authority (FCA) which creates the rules for the banking industry has warned people about the risks of investing in cryptocurrencies.

    • Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
    • Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
    • Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
    • Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
    • Marketing materials: Firms may overstate the returns of products or understate the risks involved.

     

    WHY HAS THE PRICE OF BITCOIN GONE UP?

    The value of Bitcoin, like all currencies, is determined by how much people are willing to exchange it for.

    The value of Bitcoin has fluctuated wildly since they were introduced.

    Yesterday evening (February 8) the cryptocurrency soared to more than $48,000 on the cyptocurrency markets after Elon Musk revealed Tesla invested $1.5 billion in the cryptocurrency.

    However, this has since dropped down to $46,273.39 at the time of writing, according to CoinDesk. Just one week ago, Bitcoin was worth around $34,000 on February 2. 

    This time three months ago, on November 9, Bitcoin was worth $15,000.

    IS BITCOIN SAFE?

    Anyone thinking of investing in Bitcoin or another cryptocurrency should be very careful. Their values are incredibly unpredictable, with the ability to plummet as quickly as they shoot up.

    Like with all cryptocurrencies, this means if you choose to invest in Bitcoin, you can lose your money if the value of it drops.

    For example, on January 9, 2018, Bitcoin and other major currencies crashed by £120billion after major monitoring platform Coinmarketcap decided to leave out the trading prices from South Korea.

    Cryptocurrencies themselves are also not regulated because no one is responsible for issuing them.

    But firms offering cryptoassets must now be registered with the Financial Conduct Authority (FCA) and anyone who does invest in cryptocurrencies should check before investing.

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