If you still needed any convincing that Bitcoin and cryptocurrencies are now a mainstream financial tool, 2020 is making a compelling argument.
With more and more casual investors getting into the world of crypto trading through smart software like the Bitcoin Profit App official website, companies all over the globe are moving to cater to the crypto consumer, and the digital currency continues to disrupt traditional trading methods in dozens of luxury markets.
From cryptocurrency only stores to fine art purveyors, traders the world over are diversifying their methods to accommodate a new breed of high-value clientele, who hold their wealth on the blockchain.
This week, New Jersey-based aircraft company Aviatrade Inc. has taken the step to accept Bitcoin as payment for one of its fleet of luxury private jets – a six-year-old Gulfstream G650ER, which has a fiat currency valuation of $40m USD.
The private jet, which already has an extensive wait list and boasts some of the world’s richest men, including Jeff Bezos and Elon Musk, as model owners, can house up to 18 people inside its luxurious interior, and is equipped with state of the art entertainment systems and luxury furniture as standard.
The benefit of offering the G650ER to cryptocurrency customers, according to Aviatrade president Philip Rushton, is that digital currency is less stringently regulated, and will likely allow for prospective international customers to purchase the luxury aircraft without running into intermediary issues and cross-border red tape.
Rushton told Bitcoin.com: “The reason we are doing it (accepting Bitcoin payments) is because there are countries such as Brazil, Saudi Arabia, anywhere in Asia, especially China, that don’t have easily accessible currency and they have cross-border currency transfer issues.
“We see this blockade. There are ways to bring money out of China but it’s not always easy and, of course, the buyers of these aircraft don’t want to be transparent.
“We are aware that last year alone China spent $54bn of Bitcoin buying assets – apartment buildings, boats, houses etc – we are jumping onto that bandwagon and offering the same opportunity for buyers of these jets at the high end.”
Of course, like with many cryptocurrency transactions, it is not Aviatrade’s intention to retain the cryptocurrency on transfer, and the New Jersey firm would likely convert any crypto capital straight back into fiat currency at the earliest possible opportunity.
“We don’t trade Bitcoin for Bitcoin, or Ethereum for Ethereum,” he explained. “We actually interact with the Bitcoin payment provider who will eventually produce fiat into an escrow account on behalf of the buyer and seller. The buyer puts it in, the seller sees cash come out and the Bitcoin payment provider takes their fee and we are compensated by either buyer or seller.”
This crypto-to-fiat method is becoming more and more commonplace across the world, particularly in luxury circles. Exclusive watch manufacturer Hublot launched a $25,000 model which could only be purchased through cryptocurrency, while boutique cryptocurrency stores are popping up all over the internet.
It may seem like a fairly insignificant gesture to allow the world’s super rich to utilise cryptocurrency for luxury transactions, but it does indicate that the one time speculative pursuit of computer geeks has become, over time, a truly validated global market.
Between 2018 and 2019, the total market capitalisation of cryptocurrency nearly doubled from $128bn to $237bn. The most exciting part of this news, for the luxury market, is that cryptocurrency has minted a whole new demographic of super rich individuals, whose interests and personalities differ significantly from old money types.
Even more encouraging for those who choose to pursue crypto as a viable transaction method, is that digital currency is expected to go from strength to strength in 2021. While the global economy continues to reel from the shock of the coronavirus pandemic, cryptocurrencies have remained relatively stable. So much so, in fact, that there were reports of many Americans investing their government stimulus cheques straight into cryptocurrency.
This crypto-to-fiat method is becoming more and more commonplace across the world, particularly in luxury circles. Exclusive watch manufacturer Hublot launched a $25,000 model which could only be purchased through cryptocurrency, while boutique cryptocurrency stores are popping up all over the internet.
