California man buys a Tesla Model S with Bitcoin

California man buys a Tesla Model S with Bitcoin

The buyer called the dealership on Monday, explaining how he had been turned down by other car dealers for his proposal to pay in Bitcoin.

Need an indication that Bitcoin is making its way into the mainstream? Look no further than the Lamborghini dealership in Newport Beach, California that accepted a payment in Bitcoin earlier this week for a $100,000 Model S Sedan. The electric car – which has become a popular news fixture in 2013 for its dramatic rise to the peak of the market and for its troubles with a pair of battery fires – marked the first Bitcoin transaction that the West Coast dealership has ever completed.

According to CNN, the buyer – who chose to remain anonymous as his high-profile cyber currency sale went public – paid 91.4 Bitcoins in order to fulfill the car’s $103,000 list price. The buyer called the dealership on Monday, explaining how he had been turned down by other car dealers for his proposal to pay in Bitcoin. The Newport Lamborghini dealership looked into the currency, locked in a sale price with BitPay – a payment processor that works exclusively with Bitcoin – and the sale was finalized the following day.

Bitcoin has been quite a phenomenon as a cyber currency, this year especially. Once a monetary system used only in the dark and dingy, “Wild West” corners of the internet, Bitcoin has begun to make strides into the public consciousness as of late. The Tesla Model S purchase is a clear indication of that fact.

Still, Bitcoin’s presence in criminal dealings, internet black markets, and other questionable cyber enterprises have caused many to question both the currency’s stability and the trustworthiness of the people who use it. Certainly, monetary values are far more volatile for Bitcoin than for other currency models. Conceivably, someone who “mined” a modest number of Bitcoins early on in the currency’s lifecycle could have a hefty sum of money on their hands now, with how much value the currency has gained over the years.

That’s not to say that Bitcoin values only go up, however. In fact, the Model S buyer made a good move expending some of his Bitcoin stash this week, as prices of the currency dropped sharply on Friday – mere days after the transaction was completed.

The drop was caused by Baidu Jiasule, an affiliate of China’s biggest internet search company, which announced that it would stop accepting Bitcoin payments for its services. The company said that, since Bitcoin values fluctuate so dramatically, “the interests of users cannot be protected.” Ironically, the Baidu Jiasule statement caused one such major Bitcoin value fluctuation, sending the currency plummeting 13 percent in value.

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