Sotheby’s recently made history when they sold a diamond valued at 12.3 million dollars and the buyer paid for it in cryptocurrency, making it the most expensive digital transaction to date. The decision by Sotheby’s to accept cryptocurrency for expensive items is opening the door to new markets where wealthy customers can use cryptocurrency to pay for jewelry, art, and other luxury items.
The two most accepted and well-known cryptocurrencies are Bitcoin and Ether (ETH). Bitcoin had a volatile year which saw the rise and fall of their currency. The Ethereum community is building a financial system accessible to everyone, making ETH a much sought after cryptocurrency.
This guide explains the basics of digital transactions and shows you how to buy diamonds with cryptocurrency.
The 5 Main Types of Cryptocurrencies
Cryptocurrencies are not backed by a central authority like a bank or regulated, and are created using a distributed ledger or blockchain. Here are the five cryptocurrencies with the highest value.
Bitcoin was the first cryptocurrency to be created and is entirely independent of any government or central bank. Bitcoin relies on blockchain technology, a decentralized public ledger that keeps a digital record of every transaction.
Ether is powered by Etherium, a community based digital network that uses a programmable blockchain. Users can create, publish, and monetize by using the Etherium Apps. Etherium’s financial system is peer-to-peer and accessible to everyone.
The Dogecoin cryptocurrency is based on a popular meme that featured a dog. The currency’s price skyrocketed after Elon Musk backed it.
Cardano was developed by a team of engineers, mathematicians, and cryptographers, making it more sustainable and balanced than other cryptocurrencies.
Litecoin follows the same blockchain technology as Bitcoin but generates blocks quicker, making their transactions faster.
What is Blockchain?
Blockchain is the underlying technology used by most cryptocurrencies and is a type of database that stores information in blocks chained together. Recording information in this way makes it impossible to change the information or hack the system. Nobody owns the blockchain, and all new transactions are visible to everyone on the network.
Another advantage of blockchain technology is added security, as each block is individually encrypted. The identity of users on a blockchain network is anonymous, and all users must agree to the validity of each new transaction, making it unanimous. Each blockchain transaction is also time-stamped, and any validated information cannot be changed and is irreversible.
The unique safety features and data storing capabilities of blockchain has attracted the attention of the jewelry industry. There are initiatives aiming to use blockchain technology to provide standardized global jewelry supply chains. Jewelry and blockchain are a perfect match as each stone or item can be verified and tracked, and consumers have complete transparency.
Use Your Cryptocurrency to Buy Luxury Items
If you are in the market to buy luxury diamonds with bitcoin or ETH, you will first have to acquire some cryptocurrency. To get your ETH, you need to sign up. It is free and easy, and no personal information is needed. Purchase your bitcoin or ETH at the purchase rate of the day and save your funds in a wallet.
The next step is how do I pay with cryptocurrency? Thanks to the popularity of Bitcoin, cryptocurrencies have become more mainstream. Industry leaders like Microsoft accept Bitcoin for apps, games, and other digital content. The list of companies accepting cryptocurrencies are growing, and even financial digital platforms like PayPal have come onboard.
New York-based auction house Sotheby’s announced that they would accept Bitcoin or ETH for luxury items, and Christie’s soon followed suit. The jewelry industry is now one of the leading players in accepting cryptocurrencies, and you may ask, “Can I buy loose diamonds with cryptocurrency?” The answer is yes, you can. Many Jewelers offer loose diamonds at wholesale prices and will accept cryptocurrency payments. These transactions are fast, secure, reliable, have low transaction costs, and have opened doors to new consumer markets in Asia and other parts of the world.
How Ethereum Works
Ethereum is an open-ended platform, and users contribute content to the network. Once you have signed up, you can choose your wallet. Ethereum wallets are applications and you can check your balance, make transactions and connect to Ethereum Apps.
Ethereum network users can use their ETH to buy content or apps on the network. The platform is not only for digital money. Business owners benefit from the blockchain technology offered by Etherium, and anything you own can be represented and traded, making this an ideal platform for entrepreneurs and business owners.
The value of cryptocurrencies may be volatile at times, but these digital transactions’ safety aspects and transparency overshadow these fluctuations. Now that more industries have come to accept and encourage crypto payments, the benefit to users has increased significantly.
You can buy your desired luxury item anywhere in the world, and the payment is done instantly and is secure from any cyber-attacks. Anonymity is also offered, and buyers can rest assured that their personal information is safe. For a solid investment, choose cryptocurrency to purchase any luxury item, piece of art, or even a loose diamond.