Luxury Car Purchases by Crypto Doubled to $12m in 2021, Says AutoCoinCars Executive
Nicholas Otieno Aug 08, 2022 02:10
The number of customers worldwide using cryptocurrencies to buy vehicles has significantly increased. An executive of AutoCoinCars has seen sales on its platform double to $12 million in 2021.
AutoCoinCars, an online platform that lets buyers purchase luxury cars with digital money, has seen sales on its platform double to $12 million in the past year.
AutoCoinCars is a UK-based firm that allows customers to buy and sell cars online with Bitcoin. Launched in 2018, AutoCoinCars has created a platform that enables customers to buy and sell vehicles using cryptocurrency without having to exchange them for fiat, thus solving the user's problems.
With AutoCoinCars, users don't have to go through a long process of exchanging crypto for fiat. Users, therefore, don't have to wait longer and watch their assets slowly decrease through exchange and bank fees.
In an interview on Friday 5th August, Willmott disclosed that the firm frequently sees more luxury vehicle sales during market downturns. However, he said the trend is still holding steady despite the recent market crash.
The COO said that part of the reason for that trend is, as he believes, because Lamborghinis tend to be less volatile than cryptocurrencies. "People are spending because they want to exit out of their crypto and get into physical assets. That will allow them to have this asset that doesn't depreciate like how their crypto asset will depreciate," the executive elaborated.
This means more filthy wealthy crypto holders are selling their digital assets to buy luxurious vehicles like Lamborghinis.
According to the report, despite the plunge in the global capital markets, Lamborghinis have held their value more steady than other assets, including cryptocurrencies.
Since April this year, the values of Bitcoin and Ether have dropped more than 50%, and crypto lending platforms like Celsius Networks and Voyager Digital have recently gone bankrupt. On the other hand, according to CarGurus.com, the price of a used Lambo has held its value steady over the last year.
While Lamborghini sales last year were higher than ever, but this year has set a pace to exceed that record, according to last week's financial disclosures from the parent company Volkswagen AG. Part of the reason for such a significant surge in vehicle supplies are low, and customer waitlists are long.
Selling Crypto to Diversify Portfolio
People with significant Bitcoin holdings have been looking at buying high-worth products like real estate and luxurious vehicles, among others, with their Bitcoin to diversify their portfolio and limit risks.
Cryptocurrency is expected to impact the capital markets by providing new platforms for sales. Bypassing the bank intermediaries, buyers and sellers can potentially connect in real-time, speeding up the transaction process significantly across the globe.
Since cryptocurrencies are entering the mainstream in financial portfolios and financial planning, the ability to purchase major products with Bitcoin has become a possibility.
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