Tesla fans can once again purchase their next vehicles with crypto, though it really has nothing to do with Elon Musk.
You Can Buy a Tesla with Crypto, But Musk Isn’t Involved
The payment protocols come by way of a new company called Car for Coin, a digital currency marketplace designed to help crypto collectors purchase exotic and rare vehicles with their assets. Among the vehicles for sale on the site are Lamborghinis and, of course, electric Teslas. While there is always an option to purchase with fiat currency (USD), the preferred methods involve virtual assets.
The situation is unique in that those who are (or at least were) fans of Elon Musk and his electric vehicle company are now being given a chance to take advantage of a potential option that was open for only a short while. Several months ago, Musk – the South African billionaire and CEO behind Tesla – announced that his company was going to permit customers to purchase vehicles with bitcoin and other forms of crypto down the line.
Everyone got excited, thinking that this was going to push the crypto world much closer to mainstream territory. However, the excitement didn’t last long when Musk – just a few weeks later – said that he was rescinding the decision out of fear regarding emissions and wasted energy in the crypto mining space, which he felt were having irreversible effects on the planet.
He believed that he could not push the mining sector any further by condoning bitcoin payments, and thus felt it was time to end the initiative before it even started. Now, however, it looks like Tesla and crypto collectors can take advantage of the purchase window Car for Coin is giving them.
How Everything Operates
The company’s founder Tom Hedgedosh explained how the process worked in a recent interview:
During an auction, bidders and sellers do not have to worry about the volatile values of crypto. All bids and auction prices are listed in USD because of the familiarity of the fiat currency’s value. Buyers can choose to pay for Teslas and other vehicles with crypto or traditional currency after they win the auction. If the seller does not accept crypto, we’ll convert it. That’s not a problem. We have a secure title and payment escrow service that includes free conversion from crypto to US dollars. The optional escrow service removes most risks associated with buying an expensive car from a stranger and holds both parties accountable for a secure transaction.
Further discussing the car-buying process, Hedgedosh highly recommends potential buyers convert whatever cryptocurrency they’re planning to use into a solid stable coin so that they can remove any chances of price swings. By contrast, Justice Conder – the company’s crypto expert – says that one should consider paying with an asset riskier than bitcoin, as the latter has shown itself capable of appreciating heavily over time.