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Monday, December 9, 2013

Florida Guy Buys a Tesla Car With Bitcoins

Posted By on Mon, Dec 9, 2013 at 6:55 AM

bitcoin.jpg

Around the time Bitcoin hit $1,000 on most currency exchanges, it's value was still fairly intangible. Even in tech-savvy San Francisco, the list of things you could purchase with the digital currency was still pretty slim: sushi, cupcakes, tax-deductible donations to the Internet Archive, rent in two of the city's hacker hostels.

Then last week, in what might be considered the ultimate Silicon Valley wish fulfillment, a Florida man bought a $103,000 Tesla Model S from a Lamborghini dealership in Newport Beach. He paid about 91.4 Bitcoins to complete the sale.

Two days later, Bank of America decided it wanted in on the action, publishing its first financial assessment of the currency and deeming it "a serious competitor to traditional money transfer providers."

That said, Bitcoin certainly has downsides. A whole stash can vaporize if you change your password or reformat your computer, and there's no redress for lost deposits. Not to mention the currency's dollar value fluctuates by at least 10 percent most days, and it's been known to move as much as 190 percent. Such volatility works against Bitcoin's health as a transaction system, even if it enhances the currency's sex appeal.

There's really no way to read the tea leaves on Bitcoin, or predict its value even six months from now. To play it safe, you may as well head to the nearest Tesla dealership.


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About The Author

Rachel Swan

Rachel Swan

Bio:
Rachel Swan was a staff writer at SF Weekly from 2013 to 2015. In previous lives she was a music editor, IP hack, and tutor of Cal athletes.

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