In our first article on this topic we announced that 26 North Yachts is the largest yacht brokerage to accept Bitcoin for its luxury motoryachts, once again setting a standard in the yachting industry with its innovative ways. Here we discuss why Bitcoin is peaking interest in the wealthy—which of course has implications in the luxury goods market, including yachting. Some have speculated that the Bitcoin will be the next offshore bank account—without the army of attorneys, accountants and lawyers needed or an inconvenient journey halfway around the world to set it up.
According to online blogger Anthony Freeman, Bitcoin is an attractive alternative to using cash, credit cards and wire transfers for wealthy purchasers of luxury goods, including motoryachts, for the following reasons:
Financial Privacy – Many wealthy buyers prefer utmost privacy and discretion when making major purchasers for a variety of motives. Since Bitcoin is digital cash, it is fairly anonymous. Funds can be stored on a personal computer, in the cloud or on a secure flash drive. No identification or tax number is needed to use Bitcoin. Many in the Bitcoin community are actually working to develop even more anonymous transacting. This has implications in a world where once-trusted offshore jurisdictions for transparency purposes are feeling increasing regulatory pressure to relinquish or relax some of their policies on no-tax jurisdiction and what was once the utmost in banking secrecy. Bitcoin offers a holder their own personal offshore center exclusively under their own control.
Theft Protection – Bitcoin has no central governing authority and it’s protected by a peer-to-peer network that is connected with a high level of encryption so it becomes difficult for any outside entity to snoop around in your business or confiscate your money without authorization. (Of course, some folks may use this to their benefit to avoid paying taxes.)
Litigation Protection – Since it’s relatively anonymous, encrypted and therefore difficult to trace, litigation may prove difficult should issues arise. Essentially, the trail is really tough to follow. In countries with volatile politics where a person’s wealth is entirely dependent on a certain regime, Bitcoin can offer an untraceable safety net should political tides change.
Currency Diversification – Depending on the wealthy owner’s country, the sometimes unstable nature of the Bitcoin may still prove more stable than that country’s currency which is subject to manipulation by banks and the government. Bitcoin is also limited in supply – only 21 million Bitcoin will exist in the market. Holders are not vulnerable to a defaulting bank, bankruptcy or fraud from outside parties—in other words, there’s no corresponding liability. With more stability in the market price, Bitcoin may become a significant store of value.
Global Access – Sophisticated and worldly buyers enjoy access to Bitcoin worldwide. Holders cross a border with a computer or flash drive and have access to Bitcoin currency without worrying about carrying actual currency on their person or having to report it.
26 North Yachts is pleased to accommodate the diverse needs of its buyers worldwide, ensuring that yacht purchasing is as hassle-free, seamless, discrete and convenient as possible. For more information, contact 26 North Yachts at (954) 900-9988.