So, it turns out that the story behind the Tesla Model S that was reportedly purchased with electronic-only Bitcoins last week is a little bit more complicated – this stems from it not actually having taken place that way at all…
What CNBC uncovered was that the dealer who reportedly accepted the new kind of transaction never actually held the Bitcoins at any time, and only said yes because it meant the sale of a car, and the non-physical currency could easily be converted into US dollars before then used to pay.
The process is exactly the same as the one which would have been carried out had the prospective customer offered to pay in a foreign currency. Lamborghini Newport Beach in Costa Mesa, CA, only accepts US Mint so they asked the buyer of the Model S to first exchange the Bitcoins, then bring him the real money that was required.
All of the arrangements were done over the phone with the general manager, Pietro Frigerio, who put it more simply: “It’s like if you come into the dealership and you want to buy a Lamborghini using gold bars… We will not accept that. We will accept U.S. dollars. You go out. You exchange it. You come back to us. That’s how it worked.”
By Andrei Nedelea
VIDEO