You can now purchase Tesla with Bitcoin (BTC). You heard that right! Although not from Tesla themselves but a new auction site: Car for Coin.
Through its CEO Tom Hegedosh, the marketplace said that when auctioning, those selling & those who bid shouldn’t have to stress about the volatility of the Cryptocurrency. The 1:1 ratio of converting Cryptocurrency to a stablecoin (for example, Tether USDT/USDC) helps eliminate the volatile risks associated with Cryptocurrencies.
In addition, the company says that in case those selling don’t accept Cryptocurrency, they will convert it to fiat currency.
They have a secure payment escrow service that aids in the smooth conversion of Crypto to dollars. Additionally, this optional escrow service will hold both parties accountable in case of any risks.
Car for Coin: How Transactions work
Car for Coin is an auction company where buyers get a listing of exotic automotives and then place bids on the ones they want to purchase. The company then vets the sellers’ listings to ensure there is a secure transaction.
One day after winning, those who purchase these vehicles send their payments in US dollars or Cryptocurrency.
After a successful transaction process, the sellers and purchasers communicate on the shipping process and pickup of the vehicle.
The company deals with big car brands like Lamborghini, Audi, Mercedes, Jaguars and even Teslas.
Tesla and Bitcoin
March this year, the CEO of Tesla, Elon Musk, announced that his company would accept Bitcoin as a mode of payment. It was not long before the excitement stopped.
In May, Musk tweeted, stating that Bitcoin would no longer accept Crypto as a mode of payment. This time was a bearish season for Bitcoin as China was also in the works of issuing a ban on Cryptocurrency.
According to the CEO of Tesla, climate change was the main reason for the change of heart. Environmental enthusiasts claim that Bitcoin is harmful because of the high levels of electric energy consumed.
Musk, however, says that his company will most likely adopt BTC again. Speaking at the B-Word conference, he said that if Crypto adopted more eco-friendly measures, the company would re-accept it.
On Twitter (June 13), he penned, “When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.”
Recent research carried out by NYDIG, a TechFi research company dedicated to Bitcoin, shows that the energy consumption level of Bitcoin will remain as low as 0.5%. This rate will remain not affected by price fluctuation.
Final Thoughts
More and more companies are warming up to the idea of using Bitcoin as a mode of payment. Some of them include fast-food restaurants like KFC, Art related companies like Sotheby’s, Big Tech like PayPal, and others.
Bitcoin seemingly has a bright future mainly when it adopts safer and environmentally friendly methods. Using products with lower fossil fuel demand and colonizing carbon credits might help solve this problem.
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