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What should you know before buying your car with Bitcoin?

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All the hype around Bitcoin doesn’t come as a surprise to us. The digital landscape is expanding exponentially. Amidst this growth, the appearance of digital currencies is pretty much acceptable.

Right now, Bitcoin is the most popular currency in the world. Yet, it remains a mystery for many. Some of you might have been ignoring the Bitcoin phenomenon until now. Perhaps, the idea of virtual currencies seemed ambiguous or unworthy. However, it’s about time to change all traditional perceptions. We are living in dynamic times, and you must know all about what’s going around.

With that said, Bitcoin is a secure, fascinating, and digital, global currency that only operates virtually. It allows the user to work anonymously. Also, unlike traditional currencies, it is decentralized. That is, there are no government or bank controls on the currency supply.

It was on January 3rd, 2009, when the first Bitcoin activity initiated. Its creator Satoshi Nakamoto remains unknown to this day. He launched only 21 million Bitcoin. And these become harder to mine as the time passes. Also, the currency has a sound monetary policy that anyone can verify.

Wider adoption of Bitcoin has led to crypto-trading. The public has started to accept it as a mode of payment. You can even buy luxury mansions using this currency. But what about vehicles? Is it possible to buy a car by paying in Bitcoin?

The answer is yes, indeed. You can. It all depends if you find a seller who accepts the Bitcoin payment mode. Bear in mind that in this case, the trade doesn’t stay anonymous. Rather, you have to provide insurance, tax, and license details, so the title transfers in your name securely.

To help you gain further insight, we have listed a few more things that you should know before buying a car with Bitcoin. Let’s have a look:

What is Blockchain Technology?

With the inception of cryptos and their steady stability, we started hearing the word “blockchain technology.” It is a decentralized ledger of all transactions that happen across a peer network. This tech enables the participants of a trade to ensure transactions without any central authority. Its functions make it easier to apply in voting, settling trade, and fund transfers.

Not only that, but easy cross-border money transfers are also one of the advantages this technology has brought our way.

How blockchain applies in the automotive sector?

The automotive sector has always given a warm welcome to tech advancements. The latest adoption of driverless vehicles is an example of how the industry keeps evolving. With blockchain securing a stable stand in this scenario, there is more to come.

Car dealers, these days, are implementing blockchain in their services. It enables them to offer a higher degree of transparency to the customers. They have access to all information about the vehicle’s history, valuation, ownership documents, and maintenance records.

Recently, a group of 30 automative companies formed a smart mobility consortium. It goes by the title MOBI (Mobility Open Blockchain Initiative). They are all set to revolutionize the automotive sector.

Efforts are ongoing to trigger the wide-scale adoption of these developments. More companies continue to embrace the advancements. Part of this is also due to a growing number of Bitcoin users.

A cybersecurity firm, Kaspersky Lab in Moscow, presented a report in June. They stated that 19% of the people across the world had bought one or other form of cryptocurrency.  It all took place within a decade. This is a reflection of its popularity, and it makes it apt to state that the numbers will continue to amplify.

How it integrates with the car trade?

The automotive sector has recently started to deal with Bitcoin. They are using it as:

  • A payment mode
    Bitcoin offers ease and secure money transfers. Whether you want to buy or sell a car, you can use Autocoincars as they provide platforms like P2P that enable customers to use this option. Or you can find out a local auto platform that deals in Bitcoin.
    We hope that more companies will soon jump the bandwagon.
  • Auto Financing
    Going for loans is always an option when you do not have enough funds to purchase a car. The Bitcoin financing option brings a new solution. It cuts off all the tedious work that is otherwise necessary for traditional loan applications. Blockchain makes the process simple. There are zero intermediary costs.
    More ideas about this application are in the pipeline. In 2016, Toyota Financial Services joined in with R3’s CEV blockchain consortium. They are delving further into the field to understand how merging these techs can boost efficiency and enhance the transparency of auto financing.

Many other possibilities of using Bitcoin in the automotive sector are underway. Indeed, the dynamics of this sector will soon face a whole new phenomenon.

Ways you can buy a car using Bitcoin

You can use multiple ways of buying a car using Bitcoin. Here are some of them:

  • Buy a car online

Few online services cater to the need to buy and sell cars using Bitcoin. They connect buyers and sellers who are using a similar digital currency. Or you can also check out the online marketplace to spot people who are also using Bitcoin to buy cars.

  • Buy from a dealership

You can also purchase a car from an authentic dealer. Dealerships often offer benefits like freebies and warranties. Look for the dealerships that accept Bitcoin. Go for them after thorough background evaluation. Also, check out your virtual wallet and decide accordingly.

Final Thoughts

Standing on the brink of blockchain technology, the future of Bitcoin appears bright. We cannot ignore the convenience and security of this framework. Plus, there is no need to carry heft cash everywhere. All you have to do is swipe through the screen and make a few entries. And you can get back home in your dream car without a checkbook in your pocket.

Bitcoin will soon be a part of the mainstream financial system. What it holds further is yet to be seen.

Do you agree that Bitcoin will replace fiat money after some years? Let us know.

 

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About Author

Evie Harrison

Evie Harrison is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

Disclaimer: All content found on 7bitcoins.com is only for informational purposes and should not be considered as financial advice. Do your own research before making any investment. Use information at your own risk.

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