Bitcar - Tokenization of the luxury


Users on BitCar’s platform can partially own, or “share”, a luxury car listed on the Bitcar platform – and it shall be done in a secured, decentralized manner, as aimed of blockchain technology.

Since the birth of the first metal-frame automobile more than 200 years ago, cars have always been regarded as a symbolic representation of one’s lifestyle; the richer your life, the better your ride. Since then, the mechanic icon has taken many forms, introducing to the world concepts like Supercar, Hypercar and even Megacar (all of which can be referred to as “Exotics”) along with price tags up to 6, 7 or even 8 digits – denoted in USD. And you simply do not take something that expensive outside daily, leaving these master-workmanships left in the dust, rusting away over time.

Nevertheless, classic car is still named an outperformed asset, statistically speaking. According to Knight Frank Luxury Investment Index, luxury cars have a 5-year return of 161% (to 2016), and a 10-year return of 467% - compared to the average hedge fund having a return of 4.75% in 5 years and 7.83% in 10 years. But it is also worth mentioning that the growth of luxury cars has significantly slowed down to only 1.06% per year, with the supply-side catching up fairly quickly with the demand.

Unfortunately, these “Exotics” are mostly not available to the general public both as a form of utility and as an investment, due to their relatively big price tags.

Until now.

Now, there is BitCar – a company with the aim of becoming the very first fractional exotic car trading platform – what this means is that, users on BitCar’s platform can partially own, or “share”, a luxury car listed on the Bitcar platform – and it shall be done in a secure, decentralized manner, as aimed of blockchain technology.

Fractional ownership trading has been long utilized for many high-value assets like aircraft or real estate industry as this form of asset ownership helps mitigate the risk and give access to the capital to multiple parties. In the case of BitCar, by choosing to deal only in fractions of the assets, the platform opens up the market for many more investors and car enthusiasts with a respectively lower budget comparing to the traditional market. For investors, this platform also gives access to a much higher return market as mention above – of course with equivalent risk as car dealership required a lot of expertise and may vary depending on the chosen market. The ownership, management and utilization of the tokenized asset will also be decided by the token holder through a voting process enabled by the token.

On top of that, because the value of the tokens is directly linked with the cars that they represent, the token value can be pegged to the value of the cars, which can be helpful for investors in times of market volatility. These are promising but also very complex features – especially because the token economy is still very fresh and stability is still not a common feature in the space.

But not just investors should be interested in BitCar – many car enthusiasts should be too. As said above, Automobiles with 7 digits price tags are desired by most, but used almost by none – this can change with the ownership mechanism of BitCar. With the introduction of the platform, users can literally possess a part of these work of arts, which mean an unique accessibility for many gearheads. 

Written by