Cryptocurrency has witnessed a boom in recent times. Bitcoin was brought out in 2009 by Satoshi Nakamoto, and there has been no stopping its popularity since then. Various cryptos, like Ethereum, Tether, Dogecoin, etc., have found a place in the market. Its market capitalization has crossed an astonishing $2.5 trillion.
But it is surprising how a digital asset with no “real” asset backing has become an investment option for many out there. Let us find out the reason why.
Reasons for its rise
There are various reasons for the skyrocketing growth of cryptocurrency. A few of them are listed below:
- Secrecy of payment exchange
The origin of bitcoin has not been confirmed yet, let alone its transactors. The anonymity is propelling its use on the dark web for illegal activities and now has entered legal businesses. This anonymity has become a headache for governments losing millions of dollars of tax money because of the tracking difficulties of cryptos.
- P2P transactions
Peer-to-peer transactions are when there are no intermediaries to approve or follow transactions. It is both good and bad for the user. The use of cryptocurrency is good till there is a trustworthy person on the other side and can become one’s nightmare if not. It remains unresolved because anonymity makes tracking difficult, and intermediaries are in no position to help you. The threat of cryptocurrency has made many governments focus on regulating it rather than outrightly banning it. This regulation can affect the prices of cryptocurrencies, and the details are available at www.techtimes.com.
- No belief in real currency
Every day fluctuation of the dollar, first due to quantitative easing and then rising Fed rates, has disrupted the currency valuation of many countries. There is a high probability of a recession in the US and Britain next year. All this makes people turn toward virtual assets, which can offer some solace in a crisis.
- Social media hype
We are a digitally-savvy generation. While it has its share of pros, it does come with a negative side. We tend to follow anything and everything our network follows, creating a chain of events, making anything sore much higher than its base value. Dogecoin is a relevant example where one tweet by Elon Musk shot its prices up.
- Increasing acceptance
Not only anonymous citizens but even UN bodies have started accepting payment in Bitcoin, which has encouraged people to increase its accumulation. Bitcoin is single-handedly credited for transaction value of over $5 billion.
Car dealerships and virtual currency
Global crypto users cross 100 billion, with multiple businesses accepting it as a valid payment mode. Many cardealers accept cryptocurrency as a legal payment mode. Some of the dealers are as follows:
- Bob Moore Auto Dealers
This group covers Oklahoma City. It has partnered with Aliant Payments and accepts Bitcoin, Litecoin, and Ethereum. It became one of the earliest auto groups to accept payment in crypto.
Tesla has been a prominent car dealership affecting market dynamics due to its CEO Elon Musk’s decisions and Twitter activity. It initially accepted Bitcoin as a mode of payment but later backtracked. Only one digital currency, Dogecoin, the crypto that attributes its massive rise to the company’s CEO, is accepted as a payment by Tesla dealers.
- Lamborghini Newport Beach
This dealership has been venturing into the virtual payment system since 2013. It witnessed a massive jump in sales with the crypto uproar in 2017, and there has been no stopping since. The dealership sold over seven Lamborghinis in one month with the payment in crypto.
There has been a rise in the sale of luxury goods using cryptocurrency. BMW has its niche audience among the same people, so naturally, it has started accepting payment in virtual currency. The dealership stores in the UK and the US are leading this change.
- Post-Oak motor cars
This dealership is based in Texas and has teamed up with Bitpay to accept payment in cryptocurrency. This dealership was the first luxury vehicle dealer in the US to accept Bitcoin.
Porsche Towson of the Baltimore area has teamed up with Bitpay to accept not just Bitcoin, but Ethereum, Shiba Inu, and other cryptocurrencies.
- Carriage Nissan
They are using Coinbase as a payment processor for accepting cryptocurrency. However, financing and lease options are not yet available for purchasing Nissan from Carriage Nissan for now.
It is one of the first dealerships to allow buyers to use cryptocurrency as a legal mode of payment across its thirty stores in the US and Canada.
- Edmark Toyota
This dealership covers Idaho, US. It accepts a plethora of cryptos like Ethereum, Litecoin, Ripple, etc., and is not restricted to Bitcoin.
- MotorCars Atlanta
It is based in Georgia and accepts Bitcoin as a mode of payment.
Why are car dealers venturing in virtual currency?
A business can sustain its position and have an edge over competitors when it evolves with time. The car companies and dealerships have accepted digital currency as an evolving trend that isn’t budging anytime soon. Accepting the payments widens the customer diversity of these companies and keep them relevant.
Are crypto payments safe for purchasing vehicles?
Although crypto payments might seem exciting initially, some crucial points need attention. The payment is authenticated securely as long as the wallet address of the parties is accurate. Secondly, crypto values are highly fluctuating. One might end up paying higher than the real value of the car. Thirdly, every car dealer accepts varied set of cryptocurrencies, so one should undertake extensive research to determine the one they wish to use and the dealer that might accept the same.
Cryptocurrencies are here to stay for a long time. However, one needs to be aware of the currency values that change value more frequently than average and avoid payments in those. As time progresses, there will be a rise in acceptance of virtual currencies leading to many more businesses updating their payment methods.