Sebastian Sinclair

<div id="highlights-block_624fbcabd7961" class="highlights">
 <ul>
 <li>Australia&#8217;s largest exchange and a local car retailer have inked a deal allowing customers to buy luxury vehicles with crypto</li>
 <li>The move marks a country first and one of the world&#8217;s first, since Tesla walked back its decision to let its customers make purchases using bitcoin</li>
 </ul>
 
</div>



One of Australia&#8217;s largest crypto exchanges by total users has inked a deal with a local retailer allowing individuals to purchase luxury vehicles using crypto.



The deal between crypto exchange CoinSpot and Melbourne-based car retailer Dutton Garage means customers of the company can now make a purchase in up to 30 cryptos including bitcoin, according to a statement on Friday.



The move to allow investors to purchase vehicles using digital assets breaks new ground for the country and is one of the world&#8217;s first since electric carmaker <a href="https://www.cnbc.com/2021/03/24/elon-musk-says-people-can-now-buy-a-tesla-with-bitcoin.html" target="_blank" rel="noreferrer noopener">Tesla</a> initially proposed the sale of its cars for bitcoin last year. Tesla CEO Elon Musk later <a href="https://www.caranddriver.com/news/a36434628/tesla-bitcoin-wont-accept/" target="_blank" rel="noreferrer noopener">walked back</a> the company&#8217;s decision, citing environmental concerns over bitcoin mining.



Purchases will be made available through CoinSpot&#8217;s over-the-counter trading desk, which the exchange says will limit exposure to market fluctuations, minimize low liquidity risk and reduce slippage for those customers transacting greater than $50,000.



The crypto industry&#8217;s relationship with luxury vehicles has a deep history stemming back to 2011 when startup CEO Peter Saddington cashed in <a href="https://www.thesun.co.uk/money/16967478/buy-lamborghini-with-bitcoin/" target="_blank" rel="noreferrer noopener">45 bitcoin</a> he had acquired for $115 to buy a $200,000 Lamborghini Huracan. The Lamborghini, or “Lambo,” became somewhat of a status symbol to prove one&#8217;s success in the crypto world and inspired a meme culture around it.



Indeed, some luxury vehicles listed on <a href="https://duttongarage.com/classic-cars" target="_blank" rel="noreferrer noopener">Dutton&#8217;s site</a>, including a 1967 Ford Mustang and a 1964 Porsche Coup, retail for around $350,000 Australian dollars (US$262,000).



Both companies said the partnership was in response to &#8220;strong demand&#8221; from Australian customers to purchase vehicles and other luxury items using crypto.



&#8220;With Web3, digital currencies are becoming more than just stores of value, and instead, legitimate ways to purchase big-ticket items,&#8221; CoinSpot Chief Product Officer Gary Howells said. &#8220;Increasing crypto’s utility is the key to driving mass adoption of what we believe is the future of finance.&#8221;



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Australians Can Now Buy Cars With Crypto in Country First

Casey Wagner

<div id="highlights-block_60eda34f12ce2" class="highlights">
 <ul>
 <li>Excluding food and fuel, inflation rose 4.5%, the largest increase since June 1991</li>
 <li>Used car and truck prices rose 10.5%, making up more than a third of the overall inflation rise </li>
 </ul>
 
</div>



The first Consumer Price Index report since the Federal Reserve last met in June was released Tuesday, and the numbers show that inflation talk is not likely to end anytime soon.&nbsp;



The CPI surged 5.4% in the year ending in June, the largest year-over-year gain since 2008. The index for <a href="https://cms.blockworks.co/carmax-cashes-in-big-on-used-car-surge-stock-to-watch/" target="_blank" rel="noreferrer noopener">used cars and trucks</a> surged 10.5%, accounting for more than a third of the overall rise. Excluding food and fuel, inflation rose 4.5%, the largest increase since 1991. 



The news comes just before investor and economist eyes will turn to Fed Chairman Jerome Powell on Wednesday when he begins his two-day testimony to Congress on the <a href="https://cms.blockworks.co/the-investors-guide-to-inflation/" target="_blank" rel="noreferrer noopener">state of monetary policy</a>. Questions regarding inflation bond purchase tapering and housing are expected to dominate the discussion. 



The CPI numbers are not likely to influence Fed policy in the near future. Powell is expected to maintain his stance that inflation is transitory; higher prices for used cars, plane tickets, and hotel rooms are due to supply chain issues and a resurgence in demand brought on by reopening efforts. Given where the economy was during lockdown a year ago, significant year-over-year increases are to be expected, Powell has said. 



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<iframe loading="lazy" title="The Connection between Inflation and Bitcoin | Lyn Alden" width="1024" height="576" src="https://www.youtube.com/embed/PIxqz5ea-Gk?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
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“When money supply goes up substantially from fiscal stimulus, it increases the demand that people have for many types of goods and services,” Lyn Alden, founder of Lyn Alden Investment Strategy, told Blockworks via email. “However, the supply of those goods and services did not increase, so naturally we are running into supply constraints of varying degrees of length.”



Higher prices will not last, Powell has insisted in recent months, but no one can say exactly when prices will start to lower.&nbsp;



“We know inflation is running hot, the Fed doesn’t think it will be lasting, the market is reacting as if inflation is transitory, but what we don’t know is where inflation will settle,” said Tom Essaye, founder of the Sevens Report Research. “I’m of the belief that it won’t stay at 5%, but might settle eventually around 3% or so, which is double what we have been used to for a long time.”&nbsp;



The stock market fell slightly following the news, but remained relatively stable, signaling that investors seem to be sticking with <a href="https://www.wsj.com/articles/feds-powell-set-to-testify-before-lawmakers-on-pandemic-programs-11624370400#refreshed" target="_blank" rel="noreferrer noopener">Powell’s transitory message</a>, at least for now. Treasury yields dipped marginally as well.