Bitcoin, which joined the arena in 2009 in the wake of the global economic collapse, was the first cryptocurrency to arrive more than a decade ago. Since then, crypto markets have exploded, with numerous online transactions taking place worldwide, including the first-ever superyacht sale in 2016, opening the door for a rising number of boat purchases and charters using digitally encrypted monies.
What are cryptocurrencies, and how do they work?
In a word, they are non-tangible goods in the form of digital money – denominated in virtual tokens – that let users transfer and receive payments without the assistance of a central bank.
Instead, these online transactions are recorded on a blockchain, which is essentially a record of all crypto transactions, and the currencies are held in digital wallets. Cryptography (encryption) authenticates and protects payments in this decentralized payment system, making counterfeiting and double-spending almost impossible.
What effect has this had on the superyacht industry?
The first bitcoin boat sale was reported in 2016, and since then, a series of high-profile yacht transfers have taken place. The first Bitcoin-booked charter took place in June 2018.
Many brokerage organizations now include digital transactions in their services, allowing you to pay for your boat purchase or charter with Bitcoin or another well-known cryptocurrency like Ethereum or Ripple.
The Benetti superyacht VIANNE owners announced recently that they would now take NFTs (Non-Fungible Tokens) for the yacht’s hire or sale, which is a global first.
NFTs are non-interchangeable units of data kept on a blockchain, similar to cryptocurrencies. They are widely used for acquiring digital works such as music, video clips, and art.
The key distinctions between crypto and fiat currency are their lack of interchangeability and restricted supply, which makes their worth potentially much higher.
What are some of the advantages of cryptocurrencies for superyacht owners?
The key benefit of utilizing cryptocurrencies to purchase or sell a boat is anonymity. No document ID processes are necessary, providing a significant incentive for people to prefer to stay anonymous while transferring the type of staggering amounts that change hands in the superyacht market.
However, some remain skeptical and want assurances that this sort of cash is secure to use. “Many customers appreciate the simplicity of use and privacy that purchasing with Bitcoin, or any other cryptocurrency, affords,” says Bob Denison, President of Denison Yachting. Payments on the blockchain network are untraceable, which is beneficial for people who wish to keep their trip expenses hidden.”
Users may also pay for products and services directly by avoiding the usage of third parties who are generally required to verify transactions.
What is the best way for me to buy cryptocurrency?
The procedure may be divided into three simple steps:
Purchase your favorite cryptocurrency – the most popular right now are Bitcoin, Ethereum, and Ripple. It’s worth noting that this is equivalent to exchanging foreign currency at current exchange rates. Most crypto exchanges enable customers to buy cryptocurrency using government-issued currencies like US dollars, pounds, and euros. Cryptocurrencies have exceptionally high exchange rates due to their popularity, which means you may be spending substantially less for your boat purchase or rental.
Store your newly acquired bitcoin in a digital wallet to protect against hacking or theft. Some exchanges provide wallet services, allowing you to keep your funds directly on the platform. It’s a good idea to conduct some research to get the finest service for your requirements.
Once you’ve securely stored your bitcoin in a digital wallet, the money is yours to use whenever you choose.
Payments on the blockchain network are untraceable, which is beneficial to people who wish to keep their trip expenses hidden.
Are there any disadvantages?
Although the peer-to-peer payment mechanism saves superyacht owners money by avoiding expensive bank and credit card processing costs, it still necessitates that both the vendor and the buyer perform the transaction in cryptocurrencies.
To get around this, purchasers may use a crypto exchange to convert their digital assets, with many broker businesses taking Bitcoin directly.
Like other currency transactions, cryptocurrencies may fluctuate, which may explain why superyacht owners have been hesitant to utilize them thus far. However, cryptocurrencies such as Bitcoin have seen steady growth in recent years, increasing the number of transactions and purchases made using these digital currencies.
It’s easy to understand why cryptocurrencies are quickly becoming the preferred method for anybody looking to purchase or sell a superyacht while staying anonymous, given their high level of privacy, cheap transaction costs, and quick transfer periods.
In regards to chartering, the speed with which payments are made and the ability to spend their money as they see fit without having to deal with third parties or complicated paperwork are significant advantages.
You may be able to book a last-minute charter the night before and get on board the boat the next morning. What could be wrong with that?
Do you need further assistance?
Please keep in mind that this post is intended for informational purposes. As a result, if you’re interested in learning more about utilizing cryptocurrency for boat sales or charters, contact your chosen yacht broker directly for additional information. Dubriani now accepts cryptocurrency like bitcoin for yacht charter.
Meanwhile, feel free to peruse our extensive inventory of superyachts available for hire.