One of the hardest parts about buying or leasing your next car is usually deciding on a budget. Then, you have to decide how you’re going to pay for the vehicle. Just how much are you able to spend, “put down,” or buy outright? If you’ve ever been involved in a car-leasing or car-buying transaction at a dealership, you’ve probably put down some amount of money with cash, credit, check, etc. Everyone has, right? But, chances are, you probably haven’t yet paid for a car with cryptocurrency, or, “crypto,” for short.
The vast majority of car buyers and car sellers have not yet participated in buying a car with crypto, but that could soon change with the direction the world is turning. With technology and new spending trends on the uprise, crypto is making its world debut, and with good reason. A new way of car buying is here.
Bitcoin: the cryptocurrency that swept through the nation
Merriam Webster defines cryptocurrency as any form of currency that only exists digitally, that usually has no central issuing or regulating authority but instead uses a decentralized system to record transactions and manage the issuance of new units… to prevent counterfeiting and fraudulent transactions. In short, crypto is a decentralized, digital payment method. Instead of paper (cash) or coins to pay for certain items, crypto (held in an online “crypto wallet”) can used to pay for those same items. In addition, you can buy or sell crypto online using a variety of platforms.
The most popular of all cryptocurrency is, arguably, “Bitcoin.” Bitcoin, similar to other cryptocurrencies, is priced according to its demand, just as public stocks in the stock market. The price of one Bitcoin goes up and down depending on its popularity and demand, among other things. Many believe that over time, the price of Bitcoin will continue to rise because of the growth in cryptocurrency popularity as well as the fact that there are only a limited number of Bitcoins that were created (21 million to be exact). Other popular cryptocurrencies include names like “Dogecoin” and “Ethereum.”
Major players in the crypto game
Similar to cash, check, or credit, cars can be purchased with a cryptocurrency such as Bitcoin. In most cases, this form of payment works as long as the buyer accepts it as well as the seller agrees to it as the method of purchase. Tesla mogul and CEO Elon Musk has already allowed Tesla to accept methods of cryptocurrency as payment for its vehicles. Not only that, Tesla invested around $1.5billion into Bitcoin because its leaders believe in Bitcoin’s future. And, many other car brands are considering acceptance of cryptocurrency as a form of payment. Many private dealers already do, and many more are sure to come around.
The world is moving in the way of a decentralized, digital payment experience for all things. It might not seem like it, but the future is fast approaching. Pretty soon you too could purchase a vehicle with Ethereum or Bitcoin.
Photo Credit: Tamim Taban https://pixabay.com/illustrations/cryptocurrency-crypto-bitcoin-6601591/