Teslas can be paid for with bitcoin again via auction site

Elon Musk is still considering whether to accept bitcoin for Teslas once more

Tesla logo next to bitcoin token                                 
Car auction site accepts bitcoin as payment for Teslas – Photo: Shutterstock
                                

A new crypto and dollar-friendly online marketplace called CarForCoin allows people to buy premium vehicles such as Teslas and Lamborghinis with either bitcoin or the US dollar.

Once a consumer wins a bid during a CarForCoin auction, they simply choose whether they want to pay for the car in bitcoin or in dollars. If the seller does not accept bitcoin, CarForCoin converts the lead crypto into dollars.

CarForCoin suggests that if someone plans to purchase a car through the auction site, first they should convert their crypto into a stablecoin, such as tether or USD Coin, which are both 1:1 for the dollar as they are both pegged to the US fiat currency. The online car marketplace believes the conversion eliminates any crypto-related volatility. 

“All bids and auction prices are listed in USD”

Tom Hegedosh, founder of CarForCoin, said: “During an auction, bidders and sellers do not have to worry about the volatile values of crypto. All bids and auction prices are listed in USD because of the familiarity of the fiat currency’s value. Buyers can choose to pay for Teslas and other vehicles with crypto or traditional currency after they win the auction.

“If the seller does not accept crypto, we’ll convert it; that’s not a problem. We have a secure title and payment escrow service that includes a free conversion from crypto to US dollars. The optional escrow service removes most risks associated with buying an expensive car from a stranger and holds both parties accountable for a secure transaction.”

Tesla likely to start accepting bitcoin again

In July this year, at The BWord virtual event, Elon Musk, CEO of Tesla, discussed bitcoin with both Jack Dorsey, CEO of Twitter and Square, and ARK Invest CEO Cathie Wood.

During the talk, Musk announced that the electric carmaker will most likely start accepting bitcoin as payment again.

Musk said Tesla would be conducting a due diligence process to see how much energy was used in mining the coins.

The move would be Musk’s second U-turn over the company accepting the leading crypto.

In March this year, Musk announced Tesla would accept bitcoins as payment. He then made a volte-face in May and suspended the use of bitcoin due to environmental concerns about the huge amount of electricity used in mining the cryptocurrency.

The Tesla CEO during the event said: “I wanted a little bit more due diligence to confirm that the percentage of renewable energy usage is most likely at or above 50%, and that there is a trend towards increasing that number, and if so, most likely the answer is that Tesla would resume accepting bitcoin.”

Currently, Teslas cannot be paid for with bitcoin.

Further reading: Tesla stock analysis: will the stock zoom higher?

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