Cars for Crypto How the automotive industry is getting involved in blockchain

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The automotive industry has always been at the forefront of technology and innovation. Therefore, it’s no surprise that cars and car enthusiasts are turning to crypto.

The ways the auto industry has innovated are endless. Popularize combustion engines, generalize carbon fiber, and bring electric travel into the 21st century. Today, automakers, car dealers, and even auto racers are benefiting from the interest and innovation that comes with blockchain.

Tesla makes headlines

Tesla is not the biggest automaker in the world. However, he put cars for crypto in the spotlight this year.

In March, Elon Musk announced that Tesla would start accepting Bitcoin payments.

The announcement was seen as a contributing factor to the BTC spike in the weeks that followed.

However, the celebration was short-lived after Musk reneged on his commitment to crypto due to environmental concerns in May. Musk’s announcement hit the market again, this time sending it crashing by nearly $ 10,000.

Musk then clarified his position in a tweet. He said Tesla would resume selling cars for bitcoin if miners strive to be more environmentally friendly.

When there is confirmation of reasonable (around 50%) clean energy use by miners with a positive future trend, Tesla will resume allowing bitcoin transactions, Musk tweeted in June.

Despite all the drama that surrounded the purchase of Tesla for bitcoin, the incident indicated that the crypto community was interested in paying for cars with whatever coin they wanted.

Donate cars for crypto

Tesla isn’t the only automaker to offer cryptocurrency payment, despite all the headlines.

Many other companies offer consumers the option of buying cars on a blockchain. Some have been doing it for a while.

While most of them are luxury car showrooms aimed at high-end customers, some take a more unique approach.

AutoCoinCars is one such company that offers solutions for buyers looking to buy a car with crypto. While most regular car dealerships don’t offer cryptocurrency as an option, AutoCoinCars steps in with help.

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They serve as an advertising portal through a digital showroom on their website for the dealerships they have partnered with.

The company also serves as a payment processor and accepts all major cryptocurrencies. AutoCoinCars then pays the dealer in the currency of their choice.

BitCar is another company that takes an innovative approach to selling cars through crypto. The company only accepts bitcoin as a form of payment and allows fractional ownership of high-end cars, from supercars to luxury cruisers.

This idea of ​​fractional ownership and luxury in mind is reminiscent of another area of ​​blockchain that has grown in popularity, NFTs.

Automotive Inspired NFTs

As the 2021 NFT craze slows, it shows no signs of stopping.

It feels like every week there are several noteworthy NFT sales from digital artists, famous celebrities, or pro-athletes. Many of these auctions take place at historic homes such as Christies and Sothebys.

Auto enthusiasts have always been clamoring for new ways to show their appreciation. They are also looking for new rare collectibles to add to their storefronts. This makes it the perfect home for NFTs to thrive.

One of the biggest stories includes a recent Barrett-Jackson auction. It featured four NFTs commemorating real-world cars he sold for charity in March.

What makes these cars especially special is that they are all VIN 001 automobiles. Therefore, each of the four cars sold, a Ford Mustang Mach 1, a Ram 1500 TRX Launch Edition and a 2021 Ford Bronco Coupe, are all the first to roll off the production line of this model.

The NFT auction did not sell the vehicles themselves, but the digital sales rights. The winner received the digital packaging of an exclusive video, illustrations and a trio of still images.

The auction company said it was some sort of digital automobilia commemorating the sale of a spectacular VIN 001 vehicle. All four NFTs sold for over $ 60,000 within minutes.

Another big name to race in the NFT world is the Fast and Furious franchise. In the seventh edition of the long film series, a very rare Lykan HyperSport was featured in a scene set in Abu Dhabi. The car, along with its NFT, was sold at auction in May for $ 535,000.

Hot Wheels, a technically automaker, has also announced plans to create an NFT collection. It pays homage to some of the most classic cars in its long history. Each NFT is unique and each sells for around $ 5,000.

Crypto brings fans together

It wasn’t just the cars themselves that were transported to the blockchain. The race too.

With countless racing leagues around the world, there are almost limitless opportunities for the world of motorsports to make the most of crypto.

For example, racing and crypto have teamed up in the form of fan tokens.

Fan Tokens are becoming a popular way for die-hard fans to interact and even influence their favorite sports team.

Tokens are typically purchased on a marketplace and provide a truly interactive experience for buyers. Depending on the specific offering, Fan Tokens give users access to merchandise, marketing campaigns, and even the ability to vote on real-world team decisions.

The decisions on which token holders can vote generally relate to the color of the helmet a rider will wear or the name of a new garage purchased by the racing team.

A few big names in Formula 1 have already started offering fan tokens, including McLaren Racing, Aston Martin and Alfa Romeo.

Not only do these partnerships offer Fan Tokens, but the racing teams will also offer various NFT art collections for fans to invest in.

McLaren, for example, plans to make the most of its partnership with Tezos and build an NFT fan experience platform.

The platform will list digital art for sale that showcases McLaren’s rich racing history, including important wins and famous drivers. Art, digital trading cards, music, tweets, and memes should all eventually find a place on the platform as well.

Crypto sponsors cars

Another area where cryptocurrency and racing come together is in sponsorship deals. NASCAR recently announced that a new dogecoin-themed car will be on the track.

Ridden by Stefan Parsons, the number 99 Doge Chevy Camaro debuted in the NASCAR Xfinity Series and was so popular before the Green Flag.

Dogecar was even all the rage on Twitter. Despite the hype, and much like Dogecoin himself, the number 99 crashed pretty hard into the wall early in the race.

The market responded by collapsing on its own with prices falling over 20% from the previous week.

What might surprise many dogecoin and NASCAR fans, this wasn’t the first time a car has been driven with a doge wrap on it.

In 2014, in a series of truly insane events, a random article on Reddit urged driver Josh Wise to try a dogecoin fundraising campaign.

Somehow, Wise got wind of the message and managed to fund his trip to Talladega throughout the campaign.

Wise raced for Stefan Parsons’ dad, Phil Parsons, during this time, so racing in a doge car has become something of a family tradition for team owners.

Driving towards the future

Cars and crypto complement each other well and its projects and innovations are likely to be even more numerous in the future.

Already on the horizon is a car capable of mining crypto, and even more ways to pay for cars with coins.

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