Cryptocurrencies are slowly taking over the world and proving to be an effective form of payment. Many small and large organizations have started accepting cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin as payment for their products and services.
Huge names like Microsoft and Tesla are at the forefront of all this. And now, the automotive industry is diving in on the trend. The latest to join is Mecum Auctions, the prestigious auction house dealing in classic muscle cars, vintage automobiles, and even antique vehicles.
The inclusion of crypto will allow Mecum to accept digital currencies, which is advantageous in keeping up with the times. The coronavirus pandemic hasn't made business easy either. Most businesses have shut down or downsized to save losses. Mecum’s decision to accept crypto as payment can prove to be beneficial in helping them become a leading force in the auction industry.
Let’s take a look at some of the reasons behind such a move from Mecum.
Extremely Low Transfer Fees
Mecum Auctions is a business focused on profit, and it is better if they have more of it rather than less. But conventional currencies are dealt with through banks and governments. Therefore, all the money is kept in check by the relevant authorities. They can increase or decrease the supply of their currency whenever they like, and that could cause turmoil globally.
Moreover, when money is transferred from one currency to another, there are exorbitant fees charged by the banks. Financial institutions earn a profit by managing these currencies. In crypto, a decentralized exchange happens on a blockchain, meaning that the currency is not owned or controlled by any one person or institution.
There is usually no transfer fee when shifting over from one currency to another, although it is extremely low when there is. For example, if you are trading Ethereum for Bitcoin, the exchange costs a very nominal fee. You can avoid losing money to the banking system and keep most of your cash intact.
Lightning-Fast Money Transfers
Sending money from one bank account to another in the same country takes a few minutes or a few hours, depending on the case. If the servers are down or money is sent on a holiday, it might not get through until after. That doesn't happen with cryptocurrencies. The currency transfer is almost instant.
Once you send a bitcoin to someone else, it immediately gets transferred to their wallet. There are no holidays or weekends on online exchanges, meaning you don’t get any delays.
Moreover, if the amount you are transferring is a lot, conventional banks and your government will likely scrutinize your transaction. Classic cars are not cheap, so you can expect to pay a ton of money just to secure a vehicle. Traditional cash transfers don't allow you to do that easily.
However, cryptocurrencies are very convenient in this regard. It doesn't matter how much you are transferring; you can bypass traditional banks along with their costs and fees. So, the next time you want a Corvette, you can get one in a matter of minutes.
Safety Above All
Bitcoin and other cryptocurrencies are backed by blockchain technology, ensuring that payments are free of cyber-attacks or theft. Mecum has opted for this method for this primary reason. They do not want your money to get lost in the financial system.
The sooner you send the payment, the sooner it gets to Mecum, and they can complete the transaction. Once the paperwork is complete, the vintage vehicle is sent to you, making a truly digital experience possible. Besides, the last thing you want is to lose a rare Plymouth Barracuda at an auction.
Keeping Up with The Trend
Mecum Auctions do not want to end up obsolete as many other companies did in the past. IBM used to be a huge brand, but it went obsolete, and now it is not as ubiquitous as it used to be. Microsoft took over, and it rules the market today.
Similarly, brands like Apple took over the mobile phone industry and kicked out giants like Nokia in the process. Nokia did not keep up with the competition and stayed true to the old ways. The result is that Apple is now a trillion-dollar company, whereas Nokia is nowhere to be seen.
Mecum wants to keep up to date and accept the change rather than being rigid. They might deal in antique cars, but their management is wise enough to accept cryptocurrencies. The digital coins also act as an investment for the company, which is a big bonus. Mecum can always play around with the cryptocurrencies they have or cash them out for Fiat currency.
Mecum will start accepting the digital currencies from May 22 at the Mecum Indy Auction. All future auctions will also have this facility for those interested.