In the last few years we have seen a lot of technological advancements in the automotive sector; from autonomous cars to electric cars and the use of blockchain technology powering cryptocurrency. Thanks to these new advancements, car buyers and sellers are going to see a myriad of life-changing services.
Many people who plan to buy or sell a car never think about ’paying’ with cryptocurrency. Most people don’t even know how many cryptocurrencies have been developed till date (over 1,000), even though most of them have heard about blockchain and bitcoin.
So, if you are still confused between these two terminologies, let us give you a brief definition of both. A blockchain is a digital and decentralized ledger that has a record of all cryptocurrency transactions. It grows as a series of ‘completed’ blocks and records all transactions in chronological order.
Blockchain technology was originally developed as an accounting method for the virtual cryptocurrency Bitcoin, but many industries saw its potential and how effective it could be. Today blockchain is being used for many other purposes too.
On the other hand, cryptocurrency is an application of blockchain. It is a simultaneous currency, an investment and an upcoming technology. You can use it to buy a new car, a house and so much more!
What’s more, even MasterCard has opened up access to the latest technology. This payment solution is being widely adopted as it provides ease and security to consumers and businesses alike, according to Blockgeeks.
Needless to say, even the automotive industry is welcoming this technology with open arms. People have already started paying for cars through cryptocurrency. In fact, a bitcoin investor Peter Saddington bought a Lamborghini with 45 bitcoin. As an early investor in bitcoin, he had bought the cryptocurrency with a mere $115 which later afforded him the supercar.
Similarly, another company, known as The AutoBlock, has developed their own cryptocurrency known as the AutoCoin. This cryptocurrency can be used on a unique P2P platform especially designed for the buying and selling of cars.
The AutoBlock aligns cryptocurrency with the mainstream automotive industry by allowing users to buy and sell vehicles using the AutoCoin. Not only does it offer safe transaction, but it’s also transparent and provides the purchased vehicle’s historical data, NVD (New vehicle data), and valuations.
But that’s just the beginning. Cryptocurrency is all set to revolutionize the buying and selling processes of the automobile industry and here is how;
1- All transactions will be secure
One of the best reasons to use cryptocurrency is that it is completely digital. There is no way to reverse and counterfeit a transaction. It is one of the basic concerns that people have when using traditional payment methods like credit cards and bank transfer.
2- Immediate ownership
Many of us know that buying a car is not an easy process. It involves countless visits to the notary, tax office, and car dealers. Each process has a fee and by the time you own a new car – you have a big hole in your pocket.
Cryptocurrency contracts don’t have any such hassles. Since it is like a large property rights database that can be accessed by all participants of a transaction, the need for a third party is totally omitted.
Hence, it is a quick and reliable way to buy a car for a fraction of the expense that is required to complete the standard asset transfer process.
3- Save money
As discussed above, there is no need for you to go through external approvals while buying or selling through cryptocurrency. So, you save a lot of money there.
Plus, there is no transaction fee for cryptocurrency exchanges at the moment. However, if you are engaging with a third-party service, such as Coinbase, they will charge a small fee for their services.
One of the most exciting reasons to use cryptocurrency is that it is decentralized. It is managed by a global network of computers that use blockchain technology to manage all the databases. There is no central authority in which power is vested.
Decentralization means that all transactions are operated on a user-to-user basis. It is liberating, and the opportunities it brings are endless.
Another reason why industries and consumers prefer cryptocurrency is that it provides a high degree of privacy and transparency between the participants involved in the transaction.
A blockchain ledger is indelible and unforgeable, so there is no way anyone can be scammed. No blockchain transaction can be deleted or tampered with.
This level of transparency is a revolution in itself. It eliminates the need for manual checks and balances. A lot of resources, time and workforce, can be saved by switching to blockchain technology. Experts predict that it can shrink financial reporting costs by 70%.
6- Global recognition
Cryptocurrency is not dependent on exchange rates, interest rates, bank fee and other charges that vary according to each country. It can be used internationally without any confusions or problems.
It is a great way for businesses to approach international consumers without the fear of having to deal with hidden transaction processing fee or unnecessary bank charges.
Overall, cryptocurrency is going to have a solid impact on the way people buy and sell cars in the future. Soon, blockchain will replace traditional payment methods like cash and credit cards.
The reason why it is still not being used on a large scale at the moment is that people are unaware of the benefits cryptocurrency has to offer. Once there is enough exposure and knowledge about it, people will not hesitate to switch to the new medium.
After all, who doesn’t want a currency that gives them complete control over it, provides transparency like no other system and is globally accepted?
Do you think that cryptocurrency has the power to change the future of economic systems? We would love to hear your thoughts in the comments below.