What are the pros and cons of crypto and why should you buy a car with cryptocurrency?

The popularity of cryptocurrency has been on the rise for many years now and is like a train that cannot be stopped currently! It is taking the world by storm.

From Bitcoin to Ethereum to Tether and more! There are literally thousands of cryptocurrencies that you can choose to invest in nowadays. So, with over 20,000 cryptos in circulation, there are bound to be significant communities that are looking for ways to spend their digital assets.

It is fairly common knowledge now that there are various large companies now adopting cryptocurrency as a payment method, the likes of PayPal, Starbucks and more. One of the trends that have been surging across platforms like Reddit and Twitter is the desire for more car companies to accept cryptocurrency.

Bloomberg recently wrote that 'luxury car sales have been keeping up a strong pace despite the post-pandemic economic crisis across the world and the crypto winter.' One of the consumer groups keeping luxury car sales strong is cryptocurrency holders.

COO, Luke from AutoCoinCars detailed that 'despite the cryptocurrency market being down, their Lamborghini sales, in particular, were very strong'. He said this is because 'people with large crypto assets, will exit into a luxury car that will hold its value in fiat, or even improve. Then when the time is right, they will sell it and re-enter the crypto market.'

But of course, there are more pros for why you should buy a car with cryptocurrency than this. Not everyone can afford the likes of a Lamborghini, so let’s take a look at some other pros and cons.

Pros

It’s a great way to exit your crypto without the stress of capital gains tax or exchange fees.

Exchanging crypto back into local currency can be an extremely stressful process. You have to time the market right, pay fees, declare capital gains, and risk your bank account seizing the money. In short, there are a lot of things that can go wrong if you don’t properly understand what you are doing. If you buy a car with cryptocurrency, you are directly spending the crypto and avoiding these steps.

It’s a great way to exit your cryptocurrency profits into a tangible item. Cryptocurrency investing in many ways is very similar to stock market trading. When you picture Wolf of Wallstreet you see a room of people making money from digits on a screen. That’s akin to cryptocurrency.

The difference is with crypto, you have the fuss of exchanging, whereas stock market money and profits are generally in your local currency so you can take them off the exchange and spend them straight away. Cryptocurrency will always remain just an asset on your screen unless you exchange it or spend it. So why not treat yourself with your profits to a new car?

It’s fast, simple, and secure. In fact, it can even be faster than buying a car with cheques or bank transfers. Many cryptocurrencies use a network of peers across the internet to validate and transfer, the vast majority of cryptocurrencies can actually be sent within seconds! Nano, for example, is an eco-friendly cryptocurrency that can instantly transfer saving power and time, and as we all know time is money!

Cons

So, what are the cons of buying a car with cryptocurrency?

You might regret your timing.

Okay, this is a tricky one, for anyone who invests in cryptocurrency or stocks everything is relative to you personally. Whether that’s your life events, your finances, or any other factor, there are plenty of aspects that make investing relative to the individual.

But, for argument's sake, there is always a risk that you may regret your cryptocurrency exit timing. The cryptocurrency market can be unpredictable and volatile. You may exit by buying a car with your crypto, to then see the market plummet which would be a sigh of relief for you.

On the other hand, you may spend your crypto and then the market rises! This means that in hindsight you could have made more money and bought a nice car! Or simply just made more money for you to keep or re-invest.

But, as we said, everything is relative so remember, whatever happens in the market, for you, it was the right thing to do at the time.

As mentioned above, luxury cars can be a good way to safeguard or even profit from your investment. However, the vast majority of car buyers, are likely to only see depreciation in the value. So, if you’re looking to buy a car with crypto to protect your investments, unless it’s a rare or luxury car, you’re best off exchanging it into a stablecoin instead, then back into whichever crypto you choose.

That being said, not everyone will be buying a car for this purpose. Luke from AutoCoinCars estimated that around '75% of the sales they make from crypto to car are for people to own and actually drive the vehicle, not to have it as an asset.'

So how could you buy a car with cryptocurrency if you wanted to?

AutoCoinCars is an off-ramp automotive marketplace that provides a secure, seamless service for cryptocurrency payments. They have hundreds of partnered car dealerships across Europe and the UK where you can buy a car with Bitcoin, Ethereum and many more cryptos! Head over to their website and browse the range of new and used cars for sale today!