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The Ferrari persists in the era of crypto by now accepting Dogecoin as a payment method in the United States, redefining the standards in luxury automotive with a bold and innovative move.
Let’s see below all the details.
Summary
Ferrari welcomes Dogecoin cryptocurrency
As anticipated, the prestigious car manufacturer Ferrari has recently integrated the crypto Dogecoin as a payment method for their exclusive sports cars in the United States.
In 2023, Ferrari introduced the possibility of making transactions in Bitcoin and other cryptocurrencies for the purchase of its luxury cars in the United States, with imminent plans to extend this option also in Europe.
Enrico Galliera, Chief Marketing and Commercial Officer of Ferrari, had announced this decision in an interview with Reuters, emphasizing that the choice was driven by requests from customers and dealers.
The decision to accept cryptocurrencies as a form of payment for their vehicles is part of a strategy aimed at expanding Ferrari’s appeal to those who have been successful in the cryptocurrency sector.
According to Reuters, enthusiasts in the United States will be able to make cryptocurrency payments based on the needs of wealthier customers, said Ferrari’s marketing and commercial director, Enrico Galliera.
Before the integration of Dogecoin, accepted payments were in Bitcoin (BTC), Ethereum (ETH) and the stablecoin USDC.
The company is evaluating the opportunity to extend this option to other payment service providers, with the goal of implementing the method in different regions.
According to reports, vehicle prices will remain unchanged even if the customer chooses to pay with cryptocurrencies, without any additional costs applied.
To facilitate transactions in the United States, Ferrari has chosen the cryptocurrency payment company BitPay, with plans to expand this collaboration to Europe as soon as possible.
Environmental commitment and concerns about volatility
Despite concerns about the carbon footprint associated with cryptocurrencies, Ferrari has reassured about the lesser concerns, attributing them to changes in the code, such as Ethereum’s switch to proof-of-stake last year.
To mitigate the typical volatility of cryptocurrencies, BitPay will immediately handle the conversion of cryptocurrencies into fiat currency on behalf of Ferrari dealers, a crucial goal to avoid value fluctuations.
The Ferrari manager has indeed stated the following:
“This will allow us to reach people who may not be our regular customers, but who can now afford a Ferrari.” Ferrari’s move represents an exception in the automotive sector, where many manufacturers have avoided accepting cryptocurrencies, often citing concerns related to volatility.”
Furthermore, we remember that, already in 2021, Tesla had started accepting transactions in Bitcoin. However, a few months later, Elon Musk had retracted that decision, explaining that the mining of this cryptocurrency involved excessive energy consumption.
He had announced that he would consider restoring that option only when the share of renewable energy used had exceeded 50%.
Many believe that this requirement has now been largely met, but at the moment Musk does not seem to have the intention of reintroducing payments in Bitcoin.
Considerations regarding Ferrari’s decisions on crypto and Dogecoin
The Ferrari has achieved one of the most significant market successes by allowing residents in the United States to purchase its cars using cryptocurrencies such as Bitcoin (BTC), according to the CEO of the Bitcoin ATM operator CoinFlip.
As mentioned, the origin of cryptocurrencies will be verified, eliminating the risks of volatility related to exchange rates. Dealers, and consequently Ferrari, will receive payments in traditional currency and will not have to directly manage cryptocurrencies.
According to CoinFlip’s CEO, Ben Weiss, Ferrari’s decision to accept cryptocurrency payments is of great relevance to the market.
He has indeed stated that the remarkable reputation of the brand could increase adoption, the value of cryptocurrencies, and consumer trust.
Weiss has suggested that this move in the cryptocurrency sector could attract the attention of legislators to develop clear regulatory frameworks.
Weiss has also predicted that Ferrari’s initiative will ultimately push other more traditional global companies to accept Bitcoin not only as a method of payment, stating that it is not a matter of “if”, but “when”.
He finally emphasized that Bitcoin is the best performing asset of the decade. Therefore, Ferrari’s decision to adopt cryptocurrency payments is aligned with aspects related to environmental, social, and corporate governance.
Not surprisingly, the analysis of data on the environmental impact associated with cryptocurrencies has been crucial in the decision-making process, in line with the company’s goal of becoming carbon neutral by 2030.
Brief focus on the price of the Dogecoin crypto
With the price of Bitcoin showing a slowdown in its bullish momentum at $52,000, many of the top cryptocurrencies, including DOGE, are experiencing a new correction.
Since touching the last high resistance at $0.088, Dogecoin has dropped by 7% reaching a minimum of $0.819.
This reversal was accompanied by a decrease in volume, indicating reduced interest from market participants in short positions.
The short-term movement of Dogecoin shows a sideways trend, oscillating between support levels at $0.07 and resistance at $0.09.
By using the $0.07 level as a fundamental support, the price of DOGE is forming a significant bullish reversal pattern known as a double bottom.
In a broader market recovery context, the cryptocurrency has recorded a 10% increase in two weeks, reaching $0.0852. This momentum, fueled by the bullish pattern, suggests an imminent 6.2% increase towards the resistance threshold of $0.09.
If Dogecoin were to successfully surpass this critical point, it is expected to trigger a bullish momentum, bringing the price up by another 16% to reach a target of $0.105.
However, it is expected that this upward trajectory towards $0.105 will encounter significant resistance on a long trend line, part of a symmetrical triangle pattern that has characterized the predominantly sideways market trend for almost two years.