BitCar is a platform where you can purchase tokenized exotic and luxury vehicles. Find out how it works today in our review.
What Is BitCar?
BitCar, found online at BitCar.io, aims to democratize the world of rare and exotic car ownership. Traditionally, luxury vehicles are reserved for very wealthy individuals. With BitCar, however, luxury car ownership extends to the middle class. If you can purchase a BitCar token, then you can buy a tokenized representation of a luxury car.
Basically, BitCar tokenizes luxury cars. One exotic car may be turned into 100,000 BitCar tokens. Each token represents 1/100,000th ownership of that vehicle. You can earn money from the eventual sale of that asset – just like you would make money from the sale of artwork.
Using luxury vehicles as an investment may seem strange, but the makers of BitCar claim that these cars are a better investment than many people realize:
“Historically, the value of collector cars and exotics have outstripped property prices and gold, making them a solid wealth creation vehicles.”
BitCar also advertises itself as a “safe haven” for crypto investors. You can leave your money invested in crypto, but enjoy the stability of investing in a digital token backed by real assets.
How Does BitCar Work?
BitCar aims to collect two groups of people: luxury car owners, and people who wish to purchase luxury car shares as an investment.
The creators of BitCar claim their platform will only target high-end exotic vehicles, including cars with a minimum value of around $650,000 USD and higher.
Some cars that have been mentioned by the company before include the Ferrari 250 GTO, Bugatti Chiron, and McLaren P1. Iconic cars can sell for tens of millions of dollars. A 1955 Jaguar D-Type that sold the 1955 Le Mans recently sold for $22 million USD, for example. That sale was just the third highest price ever paid for a vehicle.
Obviously, most people don’t have a spare $22 million in their checking account. That’s where BitCar sees an opportunity. By pooling the money of multiple investors together, BitCar can increase participation in the luxury car sales market.
BitCar will acquire and store exotics, then sell the cars after a 5 or 10 year term. The cars will be stored in a location that’s accessible to the public, which means investors can check on the status of their assets.
After the 5 or 10 year term is over, the vehicles are sold, and any returns are passed to token holders. During the term, token holders can also trade currencies in a peer-to-peer way. If you want to sell your luxury car investment, for example, then you can do that as easily as trading a digital token on any exchange.
Unlike ordinary cars, luxury cars and exotics aren’t a depreciating asset. The asset class has risen 50% in value over the past decade, for example. Rare classics like the Porsche 918 Spyder have more than doubled in value. When buying the right car, investors can enjoy considerable profits from their appreciation – similar to fine art.
Who’s Behind BitCar?
BitCar was established in Australia in 2015. Key members of the team include developers from Ledger Assets Pty Ltd, a blockchain commercialization company in Australia. Ledger Assets has previously launched a number of other blockchain companies, including in energy, medicine, and identity (they’re best known for launching Power Ledger, which made headlines in October for launching Australia’s first ICO while raising $34 million).
The company was founded by co-founders Dr. Gov Van Ek, John Bulich, and Nuno Martins. BitCar is based in Perth. Key members of the team include Daniel Woodroof (Car Specialist and former racecar driver), Charles Kilborn (International Engagement), Sheree Ip (Legal & Blockchain Development), and Julia Buchholz (Digital Advertising & Marketing Strategist).
In November 2017, BitCar made headlines for announcing its initial coin offering. The company is seeking $26 million AUD through the ICO to purchase exotic cars.
The BitCar ICO
BitCar tokens (BITCAR) can be purchased during the ICO. These tokens can be put towards acquiring and trading tokenized exotic vehicles through the BitCar marketplace.
There’s a total of 500 million BITCAR tokens. 250 million of those tokens will be sold during the ICO. The remaining tokens are reserved for the team and founders (95 million), bounties, early backers, and external owners (40 million), platform growth and incentives (60 million), and a token reserve fund (55 million).
The tokens are ERC20 tokens built on the Ethereum blockchain. They can be used for a number of purposes within the BitCar ecosystem, including voting, transaction fees, car token payments, escrow, and usage of the BitCar vehicles.
The BitCar ecosystem has two tokens. BITCAR are primary level tokens, while CAR are exotic asset tokens. CAR tokens are also ERC20 tokens on the Ethereum blockchain. While BITCAR tokens are designed to perform roles in the BitCar ecosystem, CAR tokens represent real, legal ownership of a luxury vehicle.
The pre-sale for BITCAR tokens begins on December 17, 2017.
We’ve seen blockchain companies tokenize things like real estate. Now, BitCar wants to tokenize luxury and exotic vehicles. Vehicles can sell for millions of dollars – a sum few investors can afford. Despite their exclusivity, luxury vehicles have risen 50% over the past decade. These returns surpass those of other asset classes. BitCar, an Australian company, seeks to democratize the asset class, making it easier for all investors to participate.
To learn more about BitCar and the ongoing token sale, visit online today at BitCar.io.