Are you a bitcoin owner and want to buy a Tesla car? If yes, you might be wondering if it will be worth it or not. Many investors hesitate to spend bitcoins for actual transactions. It is because cryptocurrency is new in the world. Also, people see it as an investment asset rather than a form of payment. In today’s world, bitcoin is gaining popularity with each passing year. Although its value and price fluctuate, investors are still interested in the same.
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Can you buy a Tesla car with bitcoin?
The founder of Tesla, Elon Musk, has announced that bitcoin investors can soon buy Tesla cars with digital coins. The primary purpose behind this action is to increase the popularity of this cryptocurrency.
Virtual coins are already used for various purposes such as shopping, booking flight tickets and hotel rooms, etc. But the number of owners using it as a mode of payment is still less. There is always a risk involved in these types of currencies. Cryptocurrency cannot be used as the traditional one as there are many problems with it.
One of the most common problems with them is that only a few people accept it as payment. It is since companies might face a massive loss if the currency’s value gets reduced.
Tesla is one of the biggest companies in the world. It won’t make such a decision without analyzing the future consequences. You might already know that bitcoins’ prices and value are not fixed. So, they keep fluctuating depending on the market conditions.
Digital coins are known for their high volatility. Only a few investors hold bitcoins for an extended period. Experts believe that Tesla might develop a system through which virtual coins can be accepted. However, there is not any confirmation that it will work or not.
What are the risks involved in buying a Tesla car with a cryptocurrency?
It has not been confirmed that this company will accept payment in cryptos. But it might be possible in the future.
As technology is improving day by day, many people want to invest in bitcoins. They think that nothing will be more profitable than this. However, there are some problems with using them in real-world transactions. So, buying a car with them will also have some issues due to the following reasons-
- Price changes rapidly: Bitcoin is a decentralized currency, so its prices do not remain stable. The price fluctuates according to the market conditions. Supply and demand play a crucial role in determining the same.
When supply is high, the cost gets decreased. On the contrary, when demand is high, the prices increase. Many factors affect the value of digital coins. All you have to do is get yourself updated on the latest news and trends. In this way, you will be able to make a perfect decision.
Elon Musk has not revealed how the company will make bitcoins a mode of payment to buy a car. People have to wait for some more time to get information about it.
It might be possible that investors can benefit if such a thing happens. As you know, the cost of cars changes after a long time such as weeks, or months. It is not the case with cryptocurrency. Suppose the value of bitcoin rises. Investors can immediately purchase a car at the same price without any worry. They might also save a lot from it. Unfortunately, the company won’t be enjoying perks for long.
- Unsafe mode of payment: Digital currencies are always risky to spend money on buying them. Although various software and apps are developed for users, it is not safe and secure. Cryptojacking is one of the most common problems that users face while holding cryptocurrency. The technology used in bitcoins is new for people. It needs many improvements to make it easier to earn more profits.
Due to this reason, many companies hesitate in getting them in exchange for products. Jeff Bezos, the founder of Amazon, believes that it will not act as a centralized currency. There needs to be a unique system to convert them into real money.
- New in the market: It has been only a decade since crypto has come. It is new in the market, and people are still gaining knowledge about it. Some of them don’t even care. Nobody knows the future of this type of cryptocurrency. You cannot deny the fact that there are more than 4000 digital currencies now. Although bitcoin is the first one, it might be possible that another one will become more famous after some time.
- Terms and conditions: The terms and conditions set by Tesla regarding the purchase of electric cars are not suitable for owners. According to them, all the transactions must be completed within 30 minutes. Otherwise, the price in bitcoin expires, and the buyer has to ask for a new one. It is because of its high volatility.
The Bottom Line
In the end, we have concluded that buying a Tesla car using bitcoins is a pretty challenging task. Owners would not be able to get potential benefits as a result. So, it is better to hold them until there is a proper system for purchasing cars. We hope you found this article helpful.
