Crypto Market Declines While Lamborghini Sales Remain Steady
When it comes to becoming wealthy via cryptocurrencies, a Lamborghini is the most crucial symbol of success, and the question “when Lambo?” has been the subject of countless online jokes.
According to Bloomberg, Lamborghini sellers are still doing rather well despite the recent decline in the price of cryptocurrencies, which has prompted second-hand marketplaces to be overrun with other luxury goods, like timepieces made by Patek Philippe and Rolex, among others.
The strong demand for supercars demonstrates that the bulk of its owners are members of a select demographic known as trophy seekers. These people are so wealthy that changes in the market have little impact on them.
Supercars have been a common sight at Bitcoin conferences and on the Instagram feeds of cryptocurrency influencers for a while now; they have joined other conventional shows of wealth like pricey watches and houses. The word “Lambo” is an acronym for Lamborghini.
The cryptocurrency market’s volatility is expected
Peter Saddington became well-known in the cryptocurrency car world after buying a Lamborghini in 2017 for 45 Bitcoin, which was worth more than $200,000 at the time of the transaction.
When Bitcoin was only worth $3 in 2011, Saddington paid just $115 for the leading cryptocurrency. The action helped cryptocurrency-based luxury car purchases become more widespread.
Many of Saddington’s industry acquaintances, he said, are still wanting to buy expensive cars. Saddington, a current cryptocurrency investor, claimed that huge price swings are typical of digital currencies and shouldn’t be used as justification for avoiding buying expensive cars.
Saddington excitedly showed me the sleek black Mercedes he had bought in April with money earned from Bitcoin mining. He remarked that his first Bitcoin Lamborghini is in the other garage and that he has no intention of selling it.
Crypto luxury car sales double in the last year
The platform that allows customers to buy luxury cars using cryptocurrencies has doubled revenues to $12 million in the last year, according to AutoCoinCars Chief Operating Officer Luke Willmott, while the growth rate has remained consistent.
Willmott claimed that the company frequently experiences an upsurge in the sales of luxury vehicles during times of market uncertainty. He believes that this is partly because a Lamborghini’s worth is more steady than the value of a digital currency.
“People are spending because they want to exit out of their crypto and get into physical assets. That will allow them to then have this asset that doesn’t depreciate like how their crypto asset will depreciate.”
Lamborghini maintaining value better than crypto
Since November 2021, the values of Bitcoin and Ether have fallen by more than 50%, while other cryptocurrency-related platforms and lenders, like Celsius Network and Voyager Digital, have just filed for bankruptcy. Recently, Lamborghinis have retained their worth better than cryptocurrencies.
According to CarGurus.com, the cost of a used Lamborghini has stayed largely the same over the past 12 months.
The parent company Volkswagen AG reported last week that Lamborghini sales were higher than ever in 2017 and are currently on pace to break that record this year.
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