A Twin Vee boat on the water. The marine company will begin to accept cryptocurrency like bitcoin

With the recent announcement that Greenline Yachts has completed a sale of a 45 Coupe – totally in bitcoin – Marine Industry News looks at potential ways in which cryptocurrency may affect the marine industry.

But first, it’s useful to understand what bitcoin is.

What is bitcoin?

Basically, bitcoin is a decentralised digital currency. That means it operates without a central authority. It uses blockchain technology (a public ledger of all transactions) to ensure transparency and security. Blockchain is also used in applications other than cryptocurrency, such as supply chain tracking, secure voting systems, and smart contracts.

When someone sends bitcoin to comeone else, the transaction is verified by ‘miners’ (network participants) who add the transaction to the blockchain. Bitcoin transactions are said to be secure, irreversible, and pseudonymous, meaning the identities of the users are not directly tied to their transactions.

Which marine companies are using bitcoin and other cryptocurrencies?

In January this year, Twin Vee, said it would start accepting bitcoin (BTC) for purchases of its Twin Vee and AquaSport powerboats (main image). The company feels that the inclusion of bitcoin could potentially attract more international buyers familiar with its decentralised and borderless nature. “Having heard from Twin Vee boat owners over the years, we want to provide greater flexibility and choice in how customers complete their purchases with us,” says Joseph Visconti, CEO of Twin Vee PowerCats Co.

“We’ll be working closely with our dealer network to facilitate bitcoin transactions for all of our customers. This will include providing credits or cash conversions to those dealers who may not currently accept bitcoin, allowing them to confidently embrace this new payment option.”

In 2022, luxury yachting company Camper & Nicholsons decided to accept crypto to expand its market, cater to new consumer preferences, and give customers more options, flexibility, and freedom. At the time, Paolo Casani, CEO said: “BitPay manages the entire process and makes it easy and safe to receive crypto from the customer and deposits cash into our account.”

In January 2022, MIN reported that superyacht brokerage firm Ocean Independence began offering clients the option of payment with cryptocurrencies.

How could bitcoin affect the marine industry?

Bitcoin and blockchain technology could affect the marine industry in several ways, particularly in terms of payments, security, and efficiency.

Global transactions can be cheaper – and instant

Cryptocurrency can facilitate faster, cheaper, and more efficient cross-border payments by eliminating intermediaries, such as banks or payment processors, which traditionally involve high fees and long processing times, says cointelegraph. Think shipping, logistics, and maritime services. Bitcoin’s decentralisation means businesses can make instant payments to international clients and suppliers.

Tracking the movement of assets in real time

Using bitcoin could help with greater transparency in shipping as it uses blockchain technology. Seemingly, that can be used to track the movement of goods in real time. According to PwC, the unchangeable nature of blockchain records helps combat fraud, and misreporting.

Smart contracts for marine industry automation

Meanwhile, Forbes says the use of smart contracts on blockchains could automate and streamline agreements, such as charter contracts, insurance claims, or freight contracts. Smart contracts are said to be self-executing contracts with the terms of the agreement written directly into the code.

Bitcoin could reduce the risk of fraud, and lower cost, in the marine sector

There’s increased security in transactions, according to Business Insider. It says the blockchain provides a secure, immutable record of transactions, reducing the risk of fraud or manipulation. This is crucial in the shipping and logistics sector, where securing financial and operational records is paramount.

Cost reduction is also a benefit cited by Coinbase which says bitcoin’s lower transaction fees can improve the overall profitability, especially when dealing with large and frequent cross-border transactions.

Marine companies can hedge against inflation with cryptocurrencies

Just like other industries, marine businesses could potentially hold bitcoin as a store of value or use it to hedge against inflation or economic instability, says Crypto News. By diversifying into cryptocurrencies, companies may improve their financial flexibility.

Tracking sustainability using the blockchain

Blockchain’s transparency can also be used to track and verify environmental impacts, such as CO2 emissions, in the marine industry. By recording data on the blockchain, companies can look at whether they are meeting environmental standards and sustainability goals. This can be a game-changer in industries like shipping, where environmental regulations are becoming stricter, says MarineLink.

What are the risks of using bitcoin?

All that said, in 2024, North Korean hacking groups were responsible for stealing approximately $1.3 billion through cryptocurrency hacks, marking their highest recorded level of such thefts, according to the Guardian. One of the most significant incidents involved the theft of 4,500 bitcoins from the Japanese exchange DMM Bitcoin, valued at around $305 million at the time.

Risks associated with bitcoin include blockchain security, theft, the fact that bitcoin’s legal status varies across countries (government regulations could impact its value or accessibility), network security and more.

While bitcoin’s value can rise, it’s subject to market volatility.

How does bitcoin’s value increase?

The value of bitcoin tends to rise. That’s because it has limited supply. Bitcoin has a fixed supply of 21 million coins. As demand increases but the supply remains limited, the value rises. This scarcity is built into bitcoin’s code, and as more coins are mined, fewer remain available, driving up demand and price. Many investors view it as a stable store of wealth, similar to gold.

Many sources (cited) have been used in the creation of this article, including AI.

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