Brazilian buys BMW with bitcoin, but puts seller in default

Brazilian buys BMW with bitcoin, but puts seller in default

A Brazilian is wanted in Mato Grosso do Sul after buying a BMW with bitcoin payment, but disappears after the negotiation. The seller then went to court to demand payment, which to this day would not have happened.

The BMW 325i Ph11 model currently has its value on the Fipe table of R$72 thousand, but at the time of negotiations, the price agreed between the parties was only R$70 thousand.

That is, the car has appreciated in value in recent years, as has bitcoin, showing that the seller’s loss may have been double.

It is worth noting that BMW is a German company recognized for the production of various luxury cars, which are appreciated all over the world.

BMW and Bitcoin

A case pending in the courts of Mato Grosso do Sul since August 2017 attracted attention this Friday (29), after rambling on about a subpoena.

That’s because the case tells the story of a purchase and sale that is totally confused with bitcoin, a digital currency that has grown as a means of payment around the world. This currency is preferred by many people because it has no intermediaries and, after the transaction is executed, it is final.

That way, even if a scammer does the transfer of value and asks for a chargeback, it doesn’t exist in the most secure blockchain network in the world. However, a seller’s blow shows the danger of carelessly accepting the payment method.

That’s because a man called a car salesman at a hotel where he was attending an event and suggested buying a BMW cash with bitcoin payment. By the time the seller arrived on the scene, the buyer said he would make the payment, but the car had to be handed over to his partner who was accompanying him.

The seller was surprised by the situation, but eventually agreed to the terms and delivered the vehicle. In May of that year, the price jumped from US$1,450.00 per coin to US$2,329.00, a significant increase before a high that reached US$20,000 in December 2017.

Since the dollar was worth on average R$3.23, the price of bitcoin did not yet exceed R$10 thousand in Brazil, that is, it is likely that the payment would be 7 BTC for the vehicle. Given the price of bitcoin in Real today, these seven coins would be worth R$1,340 million if the seller had received and kept the value.

And the problem is precisely that, since the seller has been claiming since August 2017 that he has not received his promised payment, he is appealing in the courts. This Friday, the judge hearing the case said the BMW buyer is in an uncertain and unknown location and must appear to respond to the case.

How could the seller have avoided the scam?

Since bitcoin is a currency that does not allow chargeback, the seller could have created a wallet and delivered the car only after receipt and validation of the transaction in his wallet, with a minimum of six confirmations on the network. Only then would you have the coins safely in possession and another blow would be avoided.

In addition, he could have used some “escrow” to facilitate the transaction if he had wanted to deliver the car earlier, so that the value would be preserved with a third party trusted by both parties.

Another option is to pre-test transactions to avoid cryptocurrencies scams, not store values ​​in brokerages and not use devices infected with malware, as PROTESTE Magazine has stated in recent days.

It is worth remembering that the case shows the importance of studying the basics before sticking to new financial technologies, not just cryptocurrencies and Bitcoin. In other words, how to safely create a bitcoin wallet to accept this payment method that is growing every day.

Source: Live Coins