Cryptocurrencies are digital or virtual currencies that have become very popular around the world in a fast-paced internet age.

Tesla is the most valuable car company on the stock market. And the company says it's now ready to bet on bitcoin, the most used cryptocurrency.

The company says it has invested $1.5 billion in bitcoin so far as part of a decision to "invest a portion of [the company's] cash in certain specified alternative reserve assets."

Tesla lists $19 billion in cash and cash equivalent on its balance sheet as of December 31, 2020.

In its annual filing with the Securities and Exchange Commission, Tesla says it expects "to begin accepting bitcoin as a form of payment for our products in the near future ... initially on a limited basis, which we may or may not liquidate upon receipt."

The announcement arrives as some federal governments like Nigeria's, ban trading in cryptocurrencies, labelling them illicit and too volatile.