Ferrari has announced that it will accept bitcoin as a payment method in the US, in response to demand from its customers.
👉 Background: Ferrari is the Italian luxury sports car that was founded in 1939 by Enzo Ferrari. It's known for its speedy engines, expensive cars, and these days it's underperforming F1 team.
👉 What happened: Now, Ferrari has announced that it will accept bitcoin as a payment method in the US, in response to demand from its customers. The prices will remain the same for the car whether you pay with traditional currency or crypto.
👉 What else: While Ferrari doesn’t really know how many cars it will sell via crypto, it does know it wants to expand into this universe - and it's willing to accept the risks that come with crypto.
💡Accepting bitcoin as a payment option for purchases opens up brands to some serious regulatory risks. But for Ferrari, the juice is worth the squeeze.
💡Crypto is hard to trace and with large purchases, like a Ferrari cars, it's important to establish the origin of the funds (ie no criminal activity). But that's not all. With the value of bitcoin and other cryptocurrencies fluctuating so much, there's a risk that the crypto could drop significantly in value overnight.
💡Unlike Tesla, which held bitcoin on its balance sheet, Ferrari will convert the crypto immediately to protect against the wide fluctuations.
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