The unexpected crypto boom in 2017 has created a frenzy that is yet to settle all over the world.
It has made both buyers and sellers searching for ways to have a slice of the pie. Despite the wild swings and warnings of a crypto bubble, the popularity of cryptocurrency continued to rise, and new crypto use cases consistently appeared in new industries by the day.
It was not long ago that the digital currency was used in shady dealings on the dark web, but today the landscape is vibrant with new opportunities.
The industry that has recently jumped on the bandwagon is the automotive industry. In this post, we will explore whether or not you can purchase a car through cryptocurrency, and if so, then how? But before we answer this question, let’s first understand how cryptocurrency works.
How does cryptocurrency work?
A cryptocurrency (like Bitcoin and Ethereum) is a decentralized and internet-based payment system. It uses the blockchain technology which enables the community to share a database that co-exists in multiple locations. Since there is no central point or central governing authority, it makes cryptocurrency extremely resilient and immune to attacks. Even if some nodes are attacked successfully, the rest of the nodes in the network can adapt and thwart the attack.
Each crypto user has an anonymous address and is capable of tracing every bitcoin’s transaction history. There are several advantages of using cryptocurrencies, such as sending it from one crypto wallet to another with a minimal fee and no intermediary involved. From a merchant standpoint, the inherent advantage is obviously reduced transaction fees, higher security, and convenience.
As the knowledge about cryptocurrency spreads, more and more merchants have started accepting cryptocurrency as a legitimate alternative payment method to conventional currencies for products and services. In fact, more than 100,000 merchants now accept Bitcoin, including Expedia, Microsoft, and even some subway shops.
Can you buy a car with cryptocurrency?
Yes, you can buy a car, among other things with cryptocurrency, and it isn’t as hard as you may think. You just need to ensure one thing: the buyer and seller shall agree on exchanging cryptocurrency for the vehicle. Fortunately, the widespread adoption of digital currencies has driven many dealerships and merchants to accept cryptographic money as a legitimate mode of payment.
Consider the 2013 event when a random person on the internet buys a Lamborghini with Bitcoin for the first time. In late 2013, a car dealership called Lamborghini Newport Beach announced that they would accept Bitcoin as payment. A few weeks later to this announcement, a user on the anonymous message board posted this.
The sale’s documents were leaked, and the post by the user was confirmed as authentic. The event officially marked the first sale of an automobile with cryptocurrency. Ever since that day, many crypto owners have purchased cars with cryptocurrencies around the world. Not all sellers accept cryptocurrency, but the number of those who do is constantly on the rise. Despite the speculations surrounding cryptocurrency, many people still buy and transact within cryptocurrency for regular transactions.
Below are some of the ways to buy your favorite car with cryptographic money.
1. Buy from a dealership:
Several dealerships have partnered with cryptocurrency exchange platforms to sell their cars for cryptocurrency. Most of them do not accept the coins directly; instead, they have contacts with intermediaries who facilitate the conversion of coins into fiat currency. Buying from a dealership may be costly than buying online or from an individual seller, but they are safer, reliable, and offer extended warranties.
2. Purchase online:
Many websites and web-based companies offer a plethora of choices to car buyers; however, if you are a crypto enthusiast, there aren’t many platforms that accept digital payments. For instance: One such platform is Autocoincars that offers a rich choice of models to customers, from comfortable SUVs to fancy sports cars. On such platforms, you can find collectible classics with detailed service history. Such companies usually accept payment in Bitcoin cash (BCH).
You can also find private car sellers online, but since buying a car involves a significant investment, you should be extra cautious about trusting a stranger with your cryptographic money.
3. Buy a seller who accepts cryptocurrency:
Most people want to obtain some cryptocurrencies, but they do not know how to get them. An easy way is to accept them as payment for goods like a car. Trading a vehicle that you no more need for coins is a better investment than spending a fortune on crypto mining. There are several forums and discussion groups where you can find many buyers or sellers who would be willing to buy or sell a car for cryptocurrency.
Tips for buying a car with cryptocurrency:
When buying an inexpensive item such as a car, a few tips can keep you safe from crypto frauds and scams.
- Do proper research of the seller and investigate the platform by doing a background check
- Check the vehicle history thoroughly before buying it
- Inspect the car in person because photos can be misleading
Since the concept of digital payment is its infancy, you need to be vigilant and analyze the risks before involving in a transaction.
The emergence of cryptocurrencies has seen a huge amount of speculation about their price. However, as their adoption and acceptance among merchants increase as a mode of payment, it will drive more people into the next phase of its development.