A few days ago my friend discussed a platform called Bitcar (https://bitcar.io/). He tells Bitcar is an investment platform where underlying assets are used in the form of luxury cars. Upon hearing the story honestly, I was curious about how to invest in underlying assets in the form of luxury cars? I also find out and I will try to describe here.
Did you know that super-rich people use luxury cars as one form of their investment? They buy a supercar and save it as well as take care of it, for their relative usage do not use it every day. Unlike most existing cars, supercars or luxury cars tend to continue to rise in price rather than the depreciation of assets. It makes many rich people make it as one of their investment portfolios.
Over time, the price of their car will increase. And when the owner decides to sell there are two ways to sell it, through direct buyer or through auction. This will certainly increase the level of price competition on each car. Especially if the car has a series that is very limited or already rare. But it can only be done by super rich people only. Because the price for one supercar alone can reach more than 1 million US Dollars. The numbers are quite fantastic for an asset.
Then there are people who see this as a promising investment opportunity, the problem is they do not have enough money to invest there. Supercar prices are too expensive, the level of care is quite complicated, and required maintenance costs into consideration. Here is the solution offered by Bitcar.
Bitcar is a platform where it allows anyone to invest in both small and large but with the underlying asset of luxury cars. With Bitcar everyone can invest luxury cars according to their capabilities. How is the mechanism? Check out the explanation below.
Bitcar will conduct fundraising for investors. Later investors will get tokens as proof of ownership of the part they invest. After all, funds are raised, the funds will be allocated to Supercars already analyzed by Bitcar and forecasting the potential for future value increases.
Then where does the person who invest can benefit? Surely if there is an increase in the value of the car that has been selected Bitcar earlier, the increase will be returned to the investors or the token holder itself. In addition, token holders can also sell their tokens at the exchange market.
At a glance, this is similar to what is called a mutual fund in the capital market. What is different is the underlying asset instrument used. If the mutual funds used are shares then Bitcar using luxury cars as an underlying asset.
How Promising is This?
As we know Bitcar is a platform that stands on Blockchain technology. Bitcar also issued a smart-contract token which can be categorized as a cryptocurrency token. For some of you may not yet know that cryptocurrency has a very high volatility level. You can see the chart below:
Unfortunately, many businesses do not have asset assets to keep the existing cryptocurrency value maintained. What Bitcar does is make the luxury car as a guaranteed asset from their token. In addition, the return value of a luxury car investment is also a good idea to consider. Please refer to the graph below:
On the graph shows the return of supercar is higher when compared with the return US stocks and private equity (according to type above). That is why many people who consider what Bitcar is doing is a new breakthrough in investing.
Token Sale and Car Join
Currently, Bitcar is opening the final Token sales until April 20, 2018. Please visit the link below for more information:
Official Site: https://bitcar.io/