According to the resources obtained by Reuters, General Motors is considering accepting Bitcoin as payment. It was only on 24th March Tesla announced their plans to accept Bitcoins.
Pay by Bitcoin capability available outside US later this year
— Elon Musk (@elonmusk) March 24, 2021
Thus, this is probably the chance for other major automobile industries to re-consider their payment options. Bitcoin was created in 2009, which then was a fun time hobby for tech geeks and coders.
Last month, Tesla bought Bitcoin worth $1.5 Billion, shows how serious Tesla is about accepting different payment system.
GM evaluating their options
On the other hand, GM didn’t openly admit to considering Bitcoin as a potential payment method. According to what the CEO, Mary Barra said, the company is evaluating the Cryptocurrency payments option. She says that the company will have to follow the trend with time when people up for it. Obviously, that is a cue that GM will accept Bitcoin in the future, though it is unannounced.
What other companies have to say ..
Uber and Twitter stated some points on cryptocurrency. Uber states that the company has the potential to accept Bitcoins, however, dismissed the idea immediately. On the other hand, Twitter shows interest but there is no concrete decision being made.
Elon Musk’s open support on trending Cryptocurrency is fascinating, however other companies do not fully consider this payment option.
Currently, one Bitcoin is worth around $55,200. The Tesla EVs cost as much depends on the model. Buying high-cost products with bitcoins is convenient. However, there are added complications for a customer to pay smaller amounts. Their target market is focused on affordability and convenience.
General Motors, on the other hand, has the scope of accepting payments. However, there is no escape from facing the complicated tax systems. The government is yet to consider this system fully.
Complex taxing system
The complexity of anyone using Cryptocurrency on goods is the tax system. If you purchased a Bitcoin 4 years ago for $5,600, now you can purchase one Tesla car worth $38,000 with the same bitcoin.
Though you are lucky enough to have a $32,000 gain, the tax you need to pay is around $4,400 for the capital benifits. That is equal to what you spend on the bitcoin in the first place. However, considering the package, even with huge tax amounts there is an $18,000 capital gain.
The ones who purchased Bitcoin at a later stage can have easier tax deductions, at a lower price. The taxation system has all the details about from time of purchase to the current value of Bitcoin.
(Note: The numbers are only for representation purposes. As the dollar value and Bitcoin value change on daily basis, you are to visit and review the official Bitcoin site for the real price details.)
