Why Cryptocurrency is the Future of the Car Industry
Everything you need to know
The car industry is on the brink of a massive change: Blockchain.
Thanks to blockchain technology and supplementary technologies like the metaverse and NFTs, we are about to see a new era in which the consumer is put front and center.
Decentralization is the future of car buying. It will help car buyers take back control, simplify processes and make transactions better overall!
Here are four reasons why crypto is going to make our lives better when it comes to buying cars!
Reason 1: The Tech Generations Are Growing Up
The next generation of adults — including yours truly — are finally becoming free and independent people. We’re going off to college, paying bills (and loading them onto credit), buying our first cars — all while juggling Snapchat stories of mommy bloggers ranting about flat-Earth conspiracy theories.
We live in a wild, tech-dominated world. But we’re used to it. And we’re only going to further dig into our digital holes as the years go by.
Its why cryptocurrency has a future in auto; it’s why the metaverse has a place in car culture.
“We’re not going to see a full VR metaverse experience for many years, but we will see a more ‘mixed reality’ in the near future.” — Matthew Gonzalez, Web3 Auto Expert
The metaverse is a digital world that exists in cyberspace. It’s like a cross between the internet and a video game. And it’s quickly becoming the go-to place for people to socialize and do business.
When it comes to car buying, the metaverse combined with blockchain, is becoming a new way to do it faster, more efficiently, and more securely.
This doesn’t mean we’ll have a full VR experience when test-driving a car or viewing it, rather we’ll begin to see more “mixed reality” events. Mixed reality means that some of the mundane parts of life (going to the DMV, office meetings, etc.) can be integrated into the metaverse, while other things are left to the fun of physical reality.
Reason #2: NFTs in The Auto Industry
We’re all familiar with NFTs by now. If you’re not, here’s a quick rundown: NFTs are digital assets that are stored on the blockchain. They can be anything from a piece of art to a tweet. And because they’re stored on the blockchain, they can’t be duplicated or tampered with.
NFTs are a big deal because they’re bringing digital ownership to the forefront. We can now own things that only exist in cyberspace, and this ownership is secure and verifiable!
So, how does this apply to the auto industry?
Well, imagine having your car title and your insurance policy as NFTs. It makes sense. Why wouldn’t you want something that can easily be lost as paper, be pegged one-for-one digitally on the blockchain?
Moreover, as Instagram and Twitter begin to implement NFTs we could see ways to display our tokens of ownership on our social walls. Someone, for instance, could display a Tesla token on their Instagram profile to show that they’re a part of the community. Or we could see eco-friendly tokens for anyone who drives an electric vehicle.
And through the magic of NFTs we’ll finally be able to distinguish who actually owns a luxurious car versus who was just posing in a picture of one for social media brownie points.
Reason #3: Buying Cars with Cryptocurrency (Tesla’s Experience)
Cryptocurrency is slowly but surely becoming more mainstream. We’re seeing businesses large and small begin to accept crypto as payment. Tesla, for instance, allowed customers in 2021 to buy their cars with Bitcoin!
However, the news was short-lived…
Elon Musk axed the deal citing environmental concerns about Bitcoin as the reason why the deal fell through. Elon is wrong about crypto’s environmental impact, and here’s why: How much energy does the traditional financial system, including banks, government, and the stock market, use in its totality? More, much more.
Meanwhile, nobody is actually sure how much energy Bitcoin mining uses. It’s hard to make a credible claim without complete data from the entire mining network. So, it begs the following questions:
- How many miners use solar power?
- How many use other sources of renewable energy?
It’s no secret that Bitcoin and other cryptocurrencies are becoming some of the greenest technologies ever invented. From reducing environmental impact to cutting down on power sources, crypto has become an essential part in helping our planet heal from climate change while still expanding modern economic opportunities.
This isn’t even mentioning cryptocurrencies like Ethereum or Solana which don’t use the same blockchain system as Bitcoin. These two cryptocurrencies, among many others, have as much environmental impact as your calculator.
Reason #4: Real-World Examples of Car Companies Using Blockchain
We’re seeing more and more car companies begin to experiment with blockchain. BMW, for instance, is using blockchain to track cobalt supplies in their electric vehicles. This is important because it allows them to ensure that the cobalt they’re using is ethically sourced.
They’re not the only ones. Renault is also experimenting with blockchain to track its supply chains. They’re using it to track the progress of parts from suppliers to factories. This helps them ensure that production is running smoothly and that there are no delays.
Currently, 81 of the top 100 public companies use blockchain. We can only expect to see more and more car companies begin to use blockchain in the coming years as they realize its potential.
Final thought
The car industry is about to experience a major change because of blockchain technology, crypto and the metaverse.
We’re going from an era where consumers were simply sold cars with little thought put into their future needs or wants; now we’ll see more companies start considering how they can use this new tech for their customer’s benefit!
Crypto has already made its way into other industries — why not take it one step further by revolutionizing auto sales too?
Check out Leasly Financial to learn more.
