Could you be buying cars with BitCoin in the near future?
16th July 2021
We have all seen the meteoric rise of cryptocurrencies in the past few years. However, one of these currencies has stood out more than any other, Bitcoin.
The price of the most popular cryptocurrency on the market started at a measly £0.00058 in 2010, before rising to heights of over £40,000 per BTC (Bitcoin).
What is Bitcoin?
For those of you who are less familiar with Cryptocurrencies like Bitcoin, simply put, it’s just another form of currency. It’s similar to the pound or euro, the main difference is it’s decentralised and it isn’t physical currency, It’s completely digital!
Bitcoin uses innovative peer-to-peer technology to facilitate instant payments and is extremely secure as it uses a method of encryption called blockchain.
What is Blockchain
Blockchain is a form of data store, somewhat like a register, that notes down every single transaction made. This might sound scary at first, and an invasion of privacy, but it’s not.
Let’s say you created your own cryptocurrency right now, what would stop you from giving yourself hundreds of that currency? blockchain!
As this database keeps note of every single transaction that means crypto cannot be stolen, duplicated or faked.
On top of that, as we mentioned earlier, there are no central banks involved. That means there’s no one else profiting from your finances and there’s no chance of any surprise banking fees or overdraft charges!
When you make a transaction, two of your blockchain neighbours will receive the data of that transaction, meaning if something doesn’t add up, the transaction will be void.
Properties of Blockchain
Blockchain has many other useful properties. For example, it is unanimous, meaning all members agree on the validity of records.
Another great feature of it is that it is completely anonymous and secure. To find out all of the features head over here.
So what is Bitcoin used for?
We’re sure you have heard the horror story of the man that bought a pizza for bitcoin a few years ago, and yes… it is true. Look here if you don’t believe us.
So other than buying pizza and losing out on millions of pounds, what can you do with bitcoin?
Well, for one you can transfer it from your wallet to someone else’s in seconds, without going through a centralised bank.
You can buy goods and services with it, although not too many right now.
Or you can hold onto it. After all, record high after record high for the price increases can only be exciting if you have your hands on some.
Will you be able to buy a car with Bitcoin?
Well yes, you already can. Some sites, such as AutoCoinCars allow you to select BTC as your payment method. Along with some other high-value crypto like ETH (Etherium)
Many companies will move towards this as an option of payment due to the ease and low fees required to move large amounts quickly. Also due to the volatile nature of the currencies, it means most sites that offer crypto as a payment option will have live rates available.
This is to protect both you and the dealership as if you spent 1 BTC and the second the transaction goes through the price drops to 4p….they wouldn’t be over the moon never mind the saying “too the moon“.
On the other hand, you wouldn’t be happy overpaying either. Imagine by the time you finished your morning brew after buying the car the night before and the price had skyrocketed!
It is important to keep up to date with all crypto news if you plan on making big purchases with Bitcoin as things are changing every day. It wasn’t that long ago that Elon Musk announced that Tesla will accept crypto as payment.
However, just a few weeks later, the company decided against it due to environmental concerns.
So that answers the question. Yes, you can buy cars with Bitcoin, and this may very well become a common practice soon.
What are your thoughts on the developments of cryptocurrencies and Bitcoin? Would you buy your next car with it? Let us know!
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