Would You Buy a Car with Bitcoins?

Or do you even know what bitcoins are? Long story short, a bitcoin is a digital currency. You purchase bitcoins with real money, and you get digital money in return to spend wherever bitcoins are accepted. Many people spend bitcoins online, but a number of brick-and-morter retailers are starting to accept them.

This bitcoin business is new territory and has a lot of people confused, but that isn’t stopping some bitcoin owners from making huge purchases. This past December, a Florida man paid a dealership 91.4 bitcoins for a Tesla Model S. That equalled $103,000 at the time, so about $1127 per bitcoin. A few months ago, a bitcoin was worth a tenth of that. Today, the going rate is about $795 according to Coinbase.

This remarkable volatility is one of the many reasons this so-called “crypto-currency” is in headlines, but it isn’t stopping people from buying and selling things with bitcoins. Overstock.com now accepts the digital currency, and gaming company Zynga is going to soon as well. And it’s not just for businesses that are jumping on the digital bandwagon. A woman in Vancouver is even selling her used 2006 Volkswagen Jetta for 8 bitcoins.

The whole thing intrigues me, and I even own a small fraction of a bitcoin myself. I haven’t spent it on anything yet, but I wouldn’t mind buying a Tesla with it if my modest bitcoin balance is suddenly worth $103,000 one day.

Do you have any bitcoins? What do you do with them? Does the whole idea weird you out?