Cars and Transportation, in general, are one of the most extended businesses in Spain. There are over 10 million cars and around 5 million motorcycles. An important point to consider when talking about Transportation concerning bitcoin is that several companies like Uber or Cabify make use of it as a primary source of revenue.
Spain is one of the largest countries producing cars and offering a wide variety of brands. Therefore, many wonder what will happen if this cryptocurrency becomes more successful. If you are interested in bitcoin trading, visit bitcoin app for aussies.
5 Ways that bitcoin can benefit the automobile industry of Spain
#1: More people may decide to buy a car.
As the number of Bitcoin transactions grows, many companies and people are willing to invest in it. Investors want to acquire more bitcoin, which leads them to buy cars because they believe that if bitcoin continues growing, so will its value.
Remember that we are not referring only to the people who have a high amount of bitcoin, but also those with very few. Therefore, more and more people will likely decide to move from public transport to having their car.
#2: Another option would be driving an autonomous car.
This situation, often mentioned in science fiction literature, already has its defenders.
The arrival of car manufacturers such as Tesla (in Spain represented by its Model S) or Mercedes Benz, which already offers autonomous models, could increase the number of drivers who eventually decide to get rid of their driving license and move from public transport.
#3: Cars will be cheaper and more accessible.
With the advent and success that it reaches bitcoin, the price of vehicles could go down.
This is mainly because companies have to adapt their strategies according to the times.
If they decide to invest in cryptocurrencies, they will not have as much money for other activities that are also useful for the car industry. Therefore, its success can be compromised if people buy Fiat currency for bitcoin.
If the price of bitcoin continues to be more attractive, companies will likely drive prices down, offering their vehicles for lower prices than those shown in the market.
People who buy cars with cryptocurrencies probably will not spend as much as people who still use Fiat currency (Euro or Dollar). The result would be fewer cars on sale and, therefore, lower prices.
#4: More people will use the car-sharing model.
As bitcoin grows and more businesses decide to accept it as a payment method, transportation services such as Uber or Cabify may stop depending on Fiat currency and switch to cryptocurrencies.
This move could be very profitable for both sides since the service providers could offer lower prices, and the users would pay less.
#5: Some owners of car dealerships will sell a car purchased with bitcoin to a Fiat currency user.
If someone decides to buy a car using bitcoin, there's a chance that the dealership owner of the brand you want to acquire is willing to sell it to you. In addition, if the cryptocurrency continues growing, more people are likely to try to develop cars that way, or there will be more businesses accepting bitcoin as a payment method.
3 Negative effects of bitcoin on the automobile industry of Spain
#1: It may cause a rise in unemployment.
As more people decide to buy their car or use the autonomous system, fewer people will be working at the company that sells the vehicles or transports them from point A to point B for Uber and Cabify.
This causes an increase in unemployment because it is likely that companies have to cut jobs to adapt to the times.
#2: The car insurance industry may also have problems.
If fewer people drive, companies will have less business and could go bankrupt if they do not take specific measures as soon as possible. In addition, as you can see below, there is a solid connection between the automotive industry and the insurance industry.
#3: The relationship with the bank, a traditional ally of the car dealership industry, could also be affected.
If people use cryptocurrencies more often to buy cars from dealerships that accept them, banks will have less business related to car loans.
Conclusion:
In the future, if cryptocurrencies continue to grow and more companies accept them as payment methods, there will be a significant impact on the automotive industry of Spain.
