If a person is planning to buy a Tesla vehicle with Bitcoin, s/he should think twice.
No, there is nothing wrong with the US carmaker. Even Bitcoin, a flagship cryptocurrency that does a bank’s job of transferring cross-border payments at a 99 percent lesser rate, is at no fault. But coming together to make payments innovative, both Tesla and Bitcoin appear as a tasteless food combo nobody ordered.
It is true. Buying Tesla with bitcoin is nothing but a complete hassle for a customer.
One Problem, Two Problems, Three Problems, And So On
The analogy appears right if one goes through the Nasdaq firm’s terms and conditions surrounding its bitcoin-enabled checkout option. First, a person needs to check, double-check, and sometimes triple-check every nitty-gritty detail before initiating his/her bitcoin transfer to Tesla. For example, sending bitcoin to the wrong address or copycat protocols (Bitcoin Cash, Bitcoin SV) could mean that the buyers lose all their money at one go.
That is not the case with traditional financial services. At least with them, a Tesla buyer has a chance to undo his losses with a simple phone call to their credit card service provider or banking institution. Bitcoin’s core protocol does not allow reverse transactions (the topic deserves its very own boon or bane article). And don’t forget, the cheapest Tesla car costs customers a whopping $36,000.
The hassles don’t end with the prospect of stupid human errors. They actually accelerate higher if one goes through Tesla’s refund policies. Here’s what the Elon Musk’s minions write:
“If you are entitled to a refund of your payment or a buyback, we reserve the right to refund to you either the exact Bitcoin Price that you provided to us at the time of purchase or an amount of U.S. Dollars that is equivalent to the U.S. Dollar price of the product that you purchased, at our sole and absolute discretion, taking into consideration operational efficiency.”
In simple words, Tesla does not care if the BTC a customer sent to their address is worth more when s/he seeks a refund on his/her purchased vehicle. The company will return only the equivalent of the US dollar it owes to its vehicle buyer, either in Bitcoin or the greenback itself.
Then, there are issues concerning underpayment and overpayments. It takes about 10 minutes for bitcoins to reach one wallet from another. The cost of those cryptocurrencies can move mildly to violently during the said period. In short, the unlucky ones might end up paying more than they anticipated to pay. On the other hand, if the price falls following the transaction, one just bought a discounted Tesla vehicle.
To Bitcoin or Not to Bitcoin
For now, introducing Bitcoin to Tesla’s checkout page is not a matter of convenience but showbusiness. Mr. Musk is a BTC HODLER. This is the easiest way to attract the cryptocurrency from weaker hands.
Just use a credit card, please mates!
Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including CoinChapter, NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.
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