Few asset classes are as intriguing as cryptocurrencies. So, when Tesla disclosed it had invested $1.5 billion worth of reserves into bitcoins in early February, the digital currency surged.
Tesla’s allocation is only 10% of the $19 billion cash it held as of the end of 2020. However, outside the numbers, the commitment signals a meaningful shift in tone. The announcement that the group would consider accepting bitcoins as payment for its electric vehicles has led to a much sharper focus among investors on what this might mean in terms of their appetite for cryptocurrencies going forward.
Since they are not backed by any central bank, these...
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