One of the prime signs that a currency has truly become useful is that it has begun to be accepted for purchase. That is why the US dollar is seen as so powerful. People can use it to buy from anywhere in the world or at least have it converted easily. Bitcoin, as an emerging currency, needs to show off to the world that it has become accepted before people can acknowledge it as a rival of the world’s fiat currencies.
An excellent showcase of Bitcoin purchasing power is the recent pre-order of a Tesla Model 3, one of the most-awaited car models and paid with Bitcoin by Mason Borda, a software engineer at BitGo.
Tesla Model 3’s innovation mirrors that of Bitcoin
Developed by tech entrepreneur Elon Musk, the Tesla is similar to Bitcoin in a lot of ways. Although the idea of electric cars has been around for a long time, creating one that can match the high-performance of internal-combustion cars remained challenging. The Tesla model broke the mold by defying the conventions and delivering the same performance as normal cars. This is similar to Bitcoin’s attempt to match older, more established currencies.
Borda’s pre-order was of the latest model, the Model 3, which was just announced during the tail-end of March. This iteration of the Tesla boasts a more efficient power pack that extends its range to around 200 miles per charge, while being able to accelerate to 60 miles per hour in just 60 seconds. The pre-order was detailed on his blog with the post “I Just Preordered a Tesla Model 3.” The post explained how Borda got introduced to Tesla and how he placed his pre-order using Bitcoin.
Proof of Bitcoin’s role in future finance
Unfortunately, Borda was not able to directly transfer bitcoins from his wallet address to the manufacturer’s wallet. What he did use was a Bitcoin-powered credit card service called ShakePay. With a single payment, his pre-order has been confirmed, naming Borda one of the first owners of the newest model from Tesla.
The use of a credit or debit card service to process Bitcoin payments for fiat currency payments is becoming a popular trend among Bitcoin users. Although an increasing number of merchants are quite accepting of raw Bitcoin transactions, there are still many who are hesitant of jumping on to the Bitcoin bandwagon. Most of them are afraid of the volatility of the currency, fearing lost profits. These card services help avoid that problem by instantly converting bitcoins into fiat currency while the transaction is taking place. This means that instead of bitcoins, a merchant will get secure cash into their accounts.
With this technology in place, people can accept more people willing to use Bitcoin, independent of merchants accepting them. People are already buying cars with them, so other items are not beyond the realm of the imagination.