Will you buy my car for Bitcoin in Nottingham?
That’s an interesting question, but the short answer is not yet.
Perhaps a more interesting question would have been will you buy my car for cryptocurrency – again the short answer in not yet.
Why not yet?
Cryptocurrencies have had a bit of a bad rap as their use has been commonly associated with the criminal element, which is to ignore the fact that the vast majority of users are legitimate traders and use the blockchain system for specialised purposes. – cryptocurrency is here to stay and some cryptocurrencies will become mainstream as a consumer payment method – we’ve all heard of Bitcoin, but there are many more in the mix jockeying for market dominance.
If Bitcoin is like cash why won’t you buy my car for it?
It’s too early in the evolution of crypto for sell my car to divert from cash payments or a £ sterling bank transfer, and we need to know more about it – not to mention the accounting and administration issues involved.
The fundamental problem for many businesses is cryptocurrency volatility – If we buy your car for (say) £5000 cash you’ll have that value asset in your bank and our business account will be debited the same value amount.
To convert crypto to cash or vice versa you need to have an account with a crypto currency exchange such as Coinbase which will of course attract charges.
Imagine though that we agree to buy your car for 0.15 Bitcoin (value £5000 at the time of posting) – a casual Twitter post from an influencer such as Elon Musk mid-transaction can affect the market dramatically and leave one of us seriously out of pocket. So no thanks, not yet … We’ll buy your car for cash in Nottingham right now – but who knows about the future!