Where the Crypto Rich Spend Their Bitcoins

A small but growing industry of luxury boutiques that cater exclusively to cryptocurrency holders has emerged. This article profiles a pioneer in this area: BitDials, which was the world’s first cryptocurrency-only online luxury store.

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Most people who have spent any time in the crypto space are familiar with the “Lambo” meme. It refers to bitcoin enthusiasts’ tendency to buy Lamborghinis as a way of cashing in on the value of their crypto. However, as cryptocurrency pushes into the mainstream a lot more options are becoming available for holders looking to use their coins to buy luxury goods.

Charting the Growth of Cryptocurrencies

BitDials was started by an early crypto adopter and an established watch retailer in Germany in 2016. Instead of offering Lambos, BitDials started with high-end luxury watches. In the crypto space, however, four years is a long time. BitDials saw the 2017 ICO craze come and go and survived the bear market of 2018–19. During these years it steadily increased its merchandise.

Being in business during the ups and downs in the cryptocurrency market gives BitDials a unique perspective. I asked them if they have seen an increase in demand for luxury goods for purchase with crypto over the years.

“Yes, there is certainly a constant increase in demand for our products. Partially, this can be explained by a steady growing number of customers. Even after four years in this market, we still get new customers on a daily basis. At the same time, we have a high rate of returning customers. More than 60% of our new customers make a second purchase within 2 months.”

To keep pace with this growth, BitDials has steadily expanded its offerings. Initially, it was Rolex sport watches that were far and away the most popular with crypto holders. While the demand for Rolex remains unbroken, BitDials new customers show a growing interest in watches from other exclusive brands, such as Patek Philippe, Hublot, Audemars Piguet, IWC…