Cryptocurrencies are now more commonly accepted as a payment method for everything from travel to watches to yachts. Indeed, the growing prevalence of cryptocurrency is transforming the luxury market. Several factors are driving this trend.
First, the demographic of luxury buyers is diversifying. Younger, tech-savvy buyers increasingly use cryptocurrencies to acquire luxury assets ranging from yachts to art and high-end watches. At the same time, the skyrocketing price of Bitcoin is pushing many to diversify their cryptocurrency holdings into other investments.
Bitcashier, a European-regulated global crypto processing and payment company, exemplifies this trend. CEO and Co-founder Giles Whitby-Smith and his team were inspired to facilitate easier crypto transactions across various luxury sectors. “We realized there are many people who own crypto and want to use it to pay for goods and services.
We wanted to develop a simple-to-use platform that is scalable and adaptable to multiple industries; additionally, Bitcashier’s strong adherence to AML and KYC assures confidence with global brands using our services,” he says. Founded in 2019, Whitby-Smith and his experienced crypto development team spent 14 months building and testing the platform before going live in July 2021. Bitcashier initially focused on the yachting sector, partnering with major brokerages and top yachting partners such as Denison Yachting, Camper & Nicholsons International, and Super Yachts Monaco Worldwide.
The company has since expanded and now has over 20 yachting partners alongside art dealers, luxury vehicle sellers, private jets leasing and sales, real estate, and unique travel experiences through partners like Elite Lyfe. To date, the company has processed more than $250 million in luxury goods transactions, including a 43-meter ISA superyacht purchased with Bitcoin, converted to $13 million in U.S.
dollars. The company provides personalized service for high-value transactions and is flexible with the cryptocurrencies and fiat currencies it accepts. The company processes multimillion crypto deals in real estate, supercars, art, jewelry, and other sectors across the globe on a weekly basis.
The surge in high-value cryptocurrency transactions in the luxury market is partly driven by a demographic shift. Buyers are getting noticeably younger across the luxury market. The average age of superyacht buyers now is 50 years old and is forecasted to drop to 35–40 years old by the next decade.
Similarly, the average age of the Rolls-Royce owner has dropped to 42. Gen Z will account for 25–30 percent of luxury market purchases by 2030, while millennials will account for 50–55 percent. Younger buyers tend to be more comfortable with cryptocurrencies.
The vast majority—58 percent—of cryptocurrency owners are ages 18–44. These luxury buyers like the anonymity that comes with using cryptocurrency and appreciate how it sidesteps the delays and hurdles associated with traditional banking systems. Also, cryptocurrencies are secure and facilitate the seamless international transfer of funds.
This is particularly favorable in the yacht market, where buyers and sellers often operate across different countries. The advantages of cryptocurrency extend beyond yachting. Craig English, Bitcashier’s international sales director, notes that the same buyers often use cryptocurrency for multiple big-ticket purchases.
“I have been involved in transactions where it was the same individual purchasing a yacht and paying for a charter jet service via two different companies with cryptocurrency,” he says. Another factor driving the prevalence of cryptocurrency in the luxury market is the rising price of Bitcoin. Bitcoin hit an all-time high in March 2024 at $73,835, up from $26,807 in May 2023, according to Statista.
Cryptocurrency, particularly Bitcoin, has gained traction as an investment vehicle among younger investors under 40. Buoyed by these record highs, young millionaires and billionaires increasingly want to diversify their investment portfolios to purchase yachts, jets, high-end autos, and real estate. “We are not only seeing more transaction volume; we’re also seeing more cryptocurrencies being used for purchases across the luxury market,” says English.
“Compared to a year ago, more buyers are using cryptocurrencies to purchase both mega yachts and smaller, lower-cost yachts.” With more young luxury buyers wanting to use cryptocurrencies as a payment method, luxury brands and sellers are becoming more receptive. “It is interesting to watch a company that was tentative about accepting cryptocurrency as a form of payment become positive about it once they see how safe and easy it is to accept via our solution,” English says.
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