Buying dynamometers with Bitcoin
By Mike Brezonick28 April 2021
As a supplier of highly engineered engine and chassis dynamometers built to test new and sophisticated engine and powertrain systems, Mustang Dynamometer is used to working at the cutting edge of technology.
But now the Twinsburg, Ohio-headquartered manufacturer has taken a cutting-edge move in a commercial sense as it has become one of the first manufacturers in the engine and powertrain industry to announce that it will accept Bitcoin for sales of new and used performance chassis dynamometers. The move puts Mustang, founded in 1975, in the ranks of large global corporations such as Tesla, Microsoft, AT&T, Yum Brands and PayPal, which have announced that they will be allowing consumers to use their cryptocurrency holdings to pay for products.
Bitcoin and other cryptocurrencies are essentially digital money created to allow peer-to-peer transactions on the internet without the need for traditional financial systems, institutions or government regulatory involvement. Transactions are recorded on a blockchain, essentially a digital ledger maintained on a network of computers. Bitcoin is stored in a digital or virtual wallet and trying to exchange Bitcoin into standard currency without the proper exchanges is illegal in most countries. Apps and exchanges have been established to buy, sell, send, and receive Bitcoin securely.
Opportunity to reach customers
“The decision to accept Bitcoin, a cryptocurrency, was based on the increased opportunity to reach customers, both domestic and international who would have a harder time of purchasing one of Mustang’s dynamometer products while using standard currency,” the company said in a written statement to Diesel Progress. “Bitcoin removes the need for financing and the approval process that entails.
“With other major companies now accepting Bitcoin because of the ease of use, it makes the most sense to offer it to Mustang’s customers. As Mustang Dynamometer continuously develops, expands and refines its line-up of world class chassis dynamometers and advanced engineering capabilities, and works to respond quickly to the shifts and changes in the high-performance aftermarket, it only made sense to embrace Bitcoin.”
Cryptocurrencies have become a growing part of the global business and financial network, with advocates citing benefits such as instantaneous transactions and no banking fees for either suppliers or customers associated with international transactions.
“The banking fees do exist and can be extensive,” the company said. “Yet the real incentive is for people who own Bitcoin and Bitcoin cash who do not have to go through the hassle of converting their holdings into standard currency, such as U.S. dollars to then pay for a Mustang dynamometer. Using cryptocurrency eliminates overdraft fees, transfer fees, foreign transaction fees and all other fees that go along with everyday bank business. So going from Bitcoin to direct purchase a dynamometer is easier, and less costly than going Bitcoin to standard currency to a purchase.”
Cryptocurrency exchanges sometimes do charge transaction fees, but Mustang noted “it is rarely is above one half and 1% of any given transaction. For the most part, having a Bitcoin account is basically free.”
More global sales opportunities
Mustang said it believes its acceptance of Bitcoin will open the door to sales to a broader, more global customer base. “As cryptocurrencies are rapidly increasing in both value and popularity, we expect our reach to increase as well,” the company said. “Mustang Dynamometer is an international company, headquartered in Ohio, currently doing business all over the world. The acceptance of Bitcoin for new and used dynamometer sales only should appeal to international sales as cryptocurrency has become popular as a cheaper solution to sending money across borders.
“Based on reports from various sources, in 2020, the US is far behind several other countries for the use of Bitcoin and cryptocurrencies, such as Nigeria, Vietnam, Philippines, Turkey, Peru, Switzerland and China. So, we expect a greater appeal to potential customers in other countries.”
The company added that that its “acceptance of Bitcoin should not affect any of our agents – if anything, it should make the process of selling dynamometers easier as there is less paperwork involved.”