Whether you think cryptocurrency is just a fad or the future of finance, it’s a fascinating technology. You probably made your last car purchase with boring old dollars, but maybe the next one will be with digital currency.
If you’re wondering if you can buy a car with cryptocurrency, you’ve come to the right place. Let’s take a look at how it works and if it’s a good idea. As with all money matters, it is best to consult your financial advisor before making any investments.
What is cryptocurrency?
Cryptocurrency is a decentralized digital asset. Created in the wake of the 2008 financial crisis, Bitcoin BTCUSD,
is the original cryptocurrency. It is still the largest by market cap and has inspired thousands of “altcoins”. Popular alternatives are Ethereum ETHUSD,
Ripple, Solana SOLUSD,
and more. The purpose of some cryptocurrencies is to be a store of value like “digital gold”. Others intend to be a medium of exchange, like cash, for buying and selling goods and services.
Another type of cryptocurrency are stablecoins. stablecoins like USD Coin USDCUSD,
are tied to government-issued currencies such as the US dollar and euro. For example, a USDC is worth $1. Stablecoins serve as digital placeholders for real global currencies.
America’s largest cryptocurrency exchange is a website called Coinbase COIN,
You can buy, sell, and manage hundreds of different cryptocurrencies on Coinbase. Merchants can use it as a payment processor for crypto, similar to PayPal PYPL,
See also: Lost Money From $4.5 Million Crypto Wallet Exploit? Here’s what you should do
How to buy a car with cryptocurrency
There are a few ways you can buy a car with cryptocurrency. Some online car marketplaces, such as Car for Coin and BitCars, allow you to exchange crypto – mainly bitcoin – for a vehicle.
There is an easy way to use cryptocurrency as a form of payment anywhere that accepts debit cards. Crypto debit cards like the BitPay Mastercard MA,
and Coinbase Visa V,
The card works the same as regular debit cards, but they draw funds from your crypto wallet rather than a bank account.
Some of BitPay’s trusted partners are RM Sotheby’s, Vegas Auto Gallery and Mecum Auctions, but you can use a BitPay card anywhere Mastercard is accepted. You could use a crypto debit card for a down payment, monthly payments, and insurance payments, but you might have trouble finding a dealership where you can buy a car directly with a debit card.
BitPay supports many major cryptocurrencies like Bitcoin, Ethereum and Litecoin, stablecoins like USD Coin and Binance USD and even some memecoins like Dogecoin DOGEUSD.
and Shiba Inu SHIBUSD,
A few other crypto debit card options include the CryptoWallet Mastercard and the Crypto.com Visa card.
Do not miss: People flip Corvettes to make a profit, and Chevy wants to pay them to stop
A list of merchants where you can shop with crypto
Some car dealerships around the country accept cryptocurrency as a form of payment, but there is no manufacturer that accepts crypto across its dealer network.
Here are some merchants that accept crypto through payment processors like BitPay and Coinbase:
Jeff Wyler Automotive Family in Ohio, Kentucky and Indiana
Carriage Auto Group in Georgia and Alabama
Bob Moore Auto Group in Oklahoma
Edmark Toyota in Nampa, Idaho
Lamborghini Newport Beach in Irvine, California.
Reed Jeep Chrysler Dodge Ram in Merriam, Kansas
Porsche Towson in Towson, Maryland
Rockville BMW in Rockville, Maryland
Atlanta Automobiles in Atlanta, Georgia
Tesla CEO Elon Musk has gone back and forth to accept Bitcoin as payment at Tesla TSLA,
shops, but at this point in time this system is not in place. However, if you are looking to buy a Tesla or other electric car using cryptocurrency, you may find some for sale on the crypto exchanges or car dealerships mentioned above.
See also: Senate Crypto Bill seeks to regulate trading in Bitcoin
Should I buy a car with crypto?
Anyone who has spent time with digital currency knows that anything crypto related comes with a great deal of risk. Cryptocurrency values are extremely volatile.
For example, Bitcoin reached an all-time high of almost $68,000 in November 2021. You could have bought a new Porsche 718 Cayman with one bitcoin. However, as of this writing, the value of Bitcoin is hovering around $20,000. The same bitcoin that could have bought a Porsche less than a year ago is now getting you a base Subaru Impreza.
See: Bitcoin is recovering. Thank you mom and pop investors.
Since car values don’t fluctuate nearly as much as cryptocurrency values, stablecoins would be a good way to pay for a car with digital currency. For example, if you put USDC in a BitPay wallet and use it to make car payments, you can more securely pay for your car without worrying about the value of your crypto tanking.
If you truly believe in cryptocurrency, buying a car directly with crypto like bitcoin could be a great way to use this innovative technology. It might also be fun to tell your friends you bought your car with bitcoin.
This story originally continued KBB.com.
https://www.marketwatch.com/story/yes-you-can-buy-a-car-with-cryptoheres-how-11659647051?rss=1&siteid=rss Yes, you can buy a car with crypto – here’s how