Investing

Should You Pay With Bitcoin to Buy a Tesla?

Elon Musk has announced his car company will now accept the cryptocurrency. But volatility and tax treatment could complicate such transactions.

    

Photographer: Patrick T. Fallon/Bloomberg
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Elon Musk’s announcement that Bitcoin can be used to buy a Tesla presents a conundrum for those who own the cryptocurrency.

What if Bitcoin doubles in value in, say, a year after you’ve shelled out the digital currency for stuff like a car? Or conversely, what if you held on and there’s a repeat of the price crash in 2018?