The Good News About Crypto

The headlines about the crypto market are filled with what we in the industry like to call FUD: fear, uncertainty and doubt. But if you look behind the headlines, there is actually a lot of good news about crypto. Read our latest blog post to discover the good news about crypto!
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Tired of bad news? We’ve got some good news.

Are you headed to the Digital Dealer conference in Las Vegas next week? If so, are you planning to visit the same old vendors to look at the same old products and services? Or, would you rather see something new and inspiring? Do yourself a favor and visit Cion Digital, creator of an all-new cryptocurrency payments and marketplace-lending platform for auto dealerships. Designed to integrate with existing sales and F&I processes at auto dealerships, this innovative solution makes it easy for auto dealers to transact with cryptocurrency.

Be the first auto dealership in your town or city to:

—Accept cryptocurrency as payment for vehicles

—Offer car shoppers a much-needed alternative to traditional financing options

—Facilitate low interest, crypto-secured loans for your customers

Learn more about the future of finance! Join Cion Digital at the Bellagio and The Mirage casinos. 

—Attend the DrivingSales Executive Summit Innovation Cup Event at the Bellagio, October 9-10.

—Visit Cion Digital at Booth #201 during the Digital Dealer Conference in Las Vegas, NV, October 11-13.

 

Click here to schedule time to meet in Las Vegas!

 

Not convinced? If you are a crypto skeptic, check out this article from our President and Co-Founder, Fred Brothers.

 

The Good News About Crypto

It has been a bad year for cryptocurrency. The price of Bitcoin, which is the leading market sentiment indicator for cryptos, has dropped more than 70 percent from its November 2021 highs.

The headlines about the crypto market are filled with what we in the industry like to call FUD: fear, uncertainty and doubt. But if you look behind the headlines, there is actually a lot of good news about crypto. Let’s review a few news items you might not have heard about.

Positive Signs

Whether or not the crypto market, like the stock market, has technically bottomed is almost irrelevant. Both markets may hit new lows in Q4 2022. Historically, the bottom has always been a great time to invest.

According to a recent Ascent by Motley Fool survey, 145 million American adults, or about 56% of the population, say they currently own or have owned cryptocurrency. Despite the bear market, another 46.5 million Americans say they are likely to invest in cryptocurrency for the first time in 2023.

New data from crypto analytics firm Messari reveals that venture capital money has been pouring into crypto projects.  Despite falling markets, various crypto firms raised over $30 billion in the first half of 2022.

BlackRock, the world’s largest asset manager, has recently partnered with Coinbase, a leading crypto exchange. BlackRock manages $10 trillion in assets. If just one percent of its clients’ assets are allocated to cryptocurrency, $100 billion will flow into the crypto market. Currently there are just over 2.3 million Bitcoin sitting on crypto exchanges, according to InvestAnswers, and it would only cost $53 billion to buy all of them. Many crypto analysts predict that a supply crunch is inevitable.

In the U.S., much-needed crypto regulations are coming.Bi-partisan legislation has been introduced in Congress that is expected to create a regulatory framework for crypto markets. If the bill passes, the vast majority of cryptocurrencies will be classified as commodities and regulated by the Commodity Futures Trading Commission (CFTC). This clarity will pave the way for institutions to invest billions of dollars into the crypto market.

Saving Deals with Crypto Loans

It’s important for auto dealers to realize that crypto isn’t going away, and that within the next few years, up to 20 percent of your customer base will want to transact with cryptocurrencies.

In particular, the ability to help your customers finance a vehicle loan using their crypto as collateral will make the difference between whether or not many deals get funded. This will become even more true if we enter a recession.

Most crypto investors are “HODLers,” which means they are investing for the long-term. HODLers do not want to sell their cryptocurrency, especially when prices are down. But many of these investors are willing to take a loan out against their crypto.

Sometimes, life happens and people need liquidity. Some people will have to buy cars, even if they are cash-strapped and their portfolio values are down. This is when the ability to offer a crypto-backed loan is a win-win. The dealer wins because they are able to get more deals financed, and the customers win because they get to keep their cryptocurrency and drive away in a new car.

Many consumers have asked, and are asking, F&I managers if they can use crypto to purchase or finance a vehicle. Unfortunately, the answer they receive from most dealerships is no. Auto dealers are lagging compared to other retailers when it comes to crypto adoption. Dealers who move forward sooner rather than later will enjoy a significant competitive advantage when the crypto market rebounds. And rebound it will.

Learn more about the benefits of cryptocurrency for your dealership. Schedule a meeting with us in Las Vegas!

The Good News About Crypto
Fred Brothers

Prior to co-founding Cion Digital, Fred served as the Executive Vice President and Chief Innovation Officer at FIS, a Fortune 500 provider of financial technology. Fred was a member of the senior executive team with responsibility for driving innovation and growth within FIS and its clients through internal reinvestment, corporate development, strategic partnerships, acquisitions and venture investments. He managed FIS’ venture capital portfolio, was a member of the company’s development investment committee and represented FIS on corporate boards.

Prior to FIS, Fred was founder and Managing Partner of eCom Advisors, a FinTech strategy consulting firm. eCom’s clients include many of the industry's largest banks and credit unions, solution providers, and investors.

Before eCom, he headed strategy, product, relationship management and customer operations for CheckFree (acquired by Fiserv), which he helped to grow revenue from $2 million to $1 billion.

Fred holds a business degree in finance and marketing from The Ohio State University.