Gaucho Group Holdings, Inc. – an e-commerce company that focuses on luxury items such as fine wines, leather goods and estates – has announced a major land sale that is going to be used for producing and growing vineyards. What’s the big clincher? The entire transaction occurred via cryptocurrency.
Gaucho Group Is Pushing Crypto Forward
The lot was available through a division of Gaucho known as Algodon Wine Estates. The firm concentrates primarily on wine-related offerings whether it be beverages, land for growing grapes, and just about anything else that viticulturists could use to grow their businesses.
The operation is significant not just because the land sold was large or expensive, but because it occurred through a crypto transaction. Bitcoin – along with many of its digital constituents – were initially built to serve as payment methods and push fiat, checks and credit cards to the side.
However, this has been a bumpy journey given that several of these assets are far too volatile to be taken seriously. Many businesses and people have refused to accept these assets as common payments given that they are too vulnerable to price swings, and to a degree, we can’t really blame them.
Consider the following scenario: a person walks into a retail location and decides to buy $60 worth of merchandise with bitcoin. For whatever reason, the business does not trade that crypto in for fiat right away, and about 24 hours later, the price of bitcoin goes down, meaning that $60 has turned into $30. The person gets to keep everything they bought, but the store has lost profit. Is this a fair situation? Not everyone thinks so.
Making Digital Assets More Legit
Gaucho is helping the crypto space through sales like these in that it is cementing bitcoin’s presence as a legitimate method of payment. The company’s CEO and chairman Scott Mathis said in an interview:
This is an exciting development at Algodon Wine Estates. The acceptance of digital currency as a medium of exchange continues to gather momentum as, among other causes, investors across the globe witness the impact of central bank actions on currency valuations, and as a result, are seeking alternative stores of value. At the same time, investors are beginning to recognize the opportunity for diversification that luxury real estate in Argentina presents. This cryptocurrency-based transaction represents the first of what we believe could be many more such transactions as some cryptocurrency holders look to deploy some of their holdings into various hard assets around the world. As the world continues to emerge from the pandemic, we have expected to see a resurgence in interest from traditional investors and luxury buyers in Algodon Wine Estates. The addition of investors utilizing cryptocurrency as a medium of exchange could expand that investor base significantly to the benefit of Gaucho Group.