Florida Guy Buys a Tesla Car With Bitcoins

Categories: Business, Tech

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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Kevin Kirby
Kevin Kirby

Some might prefer the Feather Coin or the Light Coin.

Nick Ryan
Nick Ryan

lol heres to progress, its a slowly evolving cultural scene but has a lot of potential for those in the know to bring great things to the forefront

Wilson Linker
Wilson Linker

Nick Ryan!!! See you guys are doing big things! Theres art basel ... And this!


Note that Tesla never touched any bitcoins; the guy found a third party willing to take his bitcoins and pay the dealer cash.  Also note that the price of bitcoins dropped about 40% a few days after the purchase so that third party kind of lost their shirt on the deal.

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