On August 16th, 2021, BOTS Inc. announced that they are now creating a platform to allow car buyers to purchase used Tesla cars with Dogecoin and other cryptocurrencies. This prompted the increasing business opportunities for merchants accepting cryptocurrencies as payments for their products and services.
The increasing cryptocurrency popularity is creating a new line to reach potential customers. As a result, this enables car dealers—and others parties—to experience increased sales and profits for their business.
BOTS Inc. is a global blockchain enterprise that provides blockchain-based solutions for consumers by creating applications for decentralized finance, consulting, cybersecurity solutions, and providing mining equipment repair in the cryptocurrency sphere. BOTS is now part of the publicly traded corporations accepting Dogecoin as a payment option for its product or service purchase.
Dogecoin has a Strong Community
Billionaire Mark Cuban, the owner of Dallas Mavericks, claims that Dogecoin is the most substantial coin to use as an exchange medium in the crypto world. Having known as a long-term Dogecoin fan, he established this claim on his Twitter page. He mentioned that Dogecoin has a robust community for exchange medium.
Meanwhile, Elon Musk affirmed this by recognizing Mark’s statement. Elon replied to the tweet with a single-line yet powerful message,
“I’ve been saying this for a while.”
Despite the two billionaire’s support for Dogecoin, skeptics still question their perception about how Dogecoin can be a good payment option owning to its risky volatility and complicated nature.
Why Buyers Prefer the Used Tesla Cars to New Ones
The acceptance of Dogecoin and other cryptocurrencies will increase the demand for Tesla electric vehicles because buyers prefer buying the used ones rather than waiting for weeks before their car delivery will happen. Despite the increased price of the used Tesla cars compared to the new ones, car dealers see cryptocurrency payment acceptance as a means to make more profits.
Another reason for buyers’ purchase of used Tesla cars is due to the scarcity mentality. Aside from that, it can relatively be the most affordable car from Tesla. An instance is the case of pre-owned Tesla 3. Despite the selling price of the used versions, buyers are willing to purchase them because they are scarce in the marketplace and affordable.
What Caused Minimized Car Production?
According to a report by Observer.com, there is a universal shortage of microchips over a year, forcing automobile manufacturing industries to reduce their production rate. Thus, few new cars are lined up for production. As a result, some used cars are more expensive than their new versions. This makes the second-hand marketplace for used cars more lucrative.
An example is Tesla 3, which preowned version is about 3% higher than the brand-new one. Despite this extra pay over used cars, buyers want to have one in their garage. This car, especially, is appealing to individuals that are eco-friendly conscious and people that love having a sports car you can drive to a beach party.
Elon and BOTS CEO Still Supporting Bitcoin and Dogecoin
Around May 2021, Elon Musk (CEO, Tesla) revealed that his car company would stop accepting Bitcoin as a payment option for its vehicles purchase. He made this known while citing the environmental impact arising from the mining cryptocurrency. Meanwhile, Tesla had been accepting Bitcoin for car purchases about three months before reclining that decision.
He mentioned that the mining process of Bitcoin increases emission rate because fossil fuels both mining and transactions. He stated that coal as a power source has hazardous effects on the environment and is unwilling to be a part.
However, he revealed last month that Tesla might start accepting Bitcoin for car purchases from his company. But he claimed that more diligence is required on his side before the acceptance will happen again. He said,
“I want to a little more 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. If so, Tesla will resume accepting Bitcoin.”
As the first step for BOTS Inc., they now allow individuals to purchase Tesla EV cars by paying with Dogecoin and other cryptocurrencies via their merchant account services. However, they have the mission to extend the benefits to other manufacturers and dealers in the industry.
Based on research, the second-hand car marketplace is estimated to hit over one trillion dollars value by 2027. BOTS Inc. recognizes this and made efforts to tap into the market with their crypto merchant account services for car manufacturers and dealers.