Bitcoins Now Can Buy You A Tesla Model S
Lamborghini Newport Beach reportedly sold a Tesla Model S to a buyer who purchased the luxury electric car with Bitcoin. At current exchange rates, it likely took about a hundred of them.
Created just four years ago, the the virtual currency is starting to become a popular method for conducting transactions globally - legal or otherwise - without the intervening controls of central banks.
Accepting Bitcoins can be risky, however. Its value relative to conventional currencies like the dollar, the euro, or the yen can fluctuate dramatically. In November, a single Bitcoin was trading at around $1000US. At the moment it is trading against the US dollar in the mid-$690 to $700 range.
Which raises the question of how do you price a Tesla Model S, or anything for that matter, if the price varies from moment to moment? Did Lamborghini Newport Beach price the car - which presumably they acquired from a private owner since Tesla doesn't sell its cars through dealerships - in dollars or Bitcoins? And once they accepted payment, which requires they have secure digital wallet, did they keep the proceeds in Bitcoins to use in future transactions, or did they go to an Internet Bitcoin exchange and trade them for dollars, with the exchange skimming off a transaction fee?
The beauty of Bitcoin is its transparency - as well as its anonymity. There is no middleman in the transaction, only when the Bitcoin owner decides to exchange them for a 'hard' currency. This explains why it's been a favored medium of exchange in the illegal drug trade. Of course, there are no government-backed assurances that the system won't crash, which it has in the past. So, caveat emptor.
That being said, we can expect to see more transactions like the Model S purchase in the future.
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