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 Tesla has revealed in securities filed the previous week that it will soon begin accepting bitcoin as payment for its electric vehicles.

But does it often make sense to buy Tesla using volatile cryptocurrencies?

The simple answer is, it depends a lot on what happens to the price of Bitcoin. And that’s the hardest thing to predict.

The values ​​of Bitcoin (XBT) fluctuate faster than most currencies. The value of a single bitcoin can go up or down thousands of dollars in just a few days.

Those quick price changes can make trading Bitcoin for cars a big deal for some buyers, but it all depends on the time. For example, if you bought a bitcoin back in July 2020, when it was worth about 10,000 dollars, once used Hyundai Elantra could buy, now you can get 40,000 dollars Tesla Model Dell 3, while a good part of the conversion was left.

It is not yet clear how Tesla (TSLA) will manage its car bitcoin purchases. Will Tesla set the price in Bitcoin in the same way that each country sets prices in D, Euro, or other local currencies? The answer to that question is still unclear, as Tesla has not returned a request to comment on its bitcoin pricing plans. 

In general, new car prices vary over a long period of time, such as weeks or months. However, Bitcoin's rapid value-orientation will make it difficult to determine the value of crypto and stick with it for any set time.

Dan Payal Rashid, head of research at GlobalData, said in an email that the company would not be able to accept 35,000 today for 3 models and 29,000 tomorrow. "In Bitcoin, swings from 10% to 20% at no price in days are not uncommon."

Alternatively, the announced prices of Tesla vehicles can remain in the local currency, such as US dollars or euros, while buyers can pay in bitcoin. In this way, the amount one pays in Bitcoin will fluctuate day by day.

It will work the same way for other places that accept Bitcoin for payment. BitPay, for example, is a company that handles bitcoin transactions for people and businesses that want to buy and sell products and services using Bitcoin.

Read more, Believe It or Not: Bitcoin has become a Good Long-Term Investment 

It has made arrangements with several luxury car dealers and several companies, including CNN's parent company AT&T, to allow customers to pay with Bitcoin. In these transactions, the customer's bitcoin is usually converted into dollars, then transferred to the merchant's bank account. (BitPay is not currently working with Tesla.)

Tesla, presumably, will make the transaction more fluid by accepting real bitcoin directly. Obviously, there are a lot of things that cost less than a bitcoin, with a pope recently trading around 46,000. In those cases, the currency will need to be divided into fractions so that payments can be made in smaller, more specific amounts.

But you can grab that bitcoin instead.

You may regret spending your increasingly valuable bitcoin on Model 3 which will eventually lose its value. One day, with rib-cracking acceleration instead of your bitcoin, the 120 120,000 Model S Plaid might be worth enough to buy.

That's probably why New York-based company Roadway Moving, which has been accepting direct bitcoin payments since 2017, has seen only a handful of customers take over, said founder and president Ross Spier.

"I can count the number of people who pay in Bitcoin," he said. At least Tesla vehicles have their value well, said Eric Ibara, director of residual values ​​at the Kelly Blue Book.

Like all cars and SUVs, Teslas loses value with the purchase. However, they lose much slower speed than comparable gas-powered vehicles, he said. So Tesla is at least a better financial investment than a new car.

Read more, Digital Gold Currency: What is Bitcoin Actually Worth?

What if the value of Bitcoin broke down?

It has also happened at times. You may regret not cashing in your bitcoin for a nice car when you get the chance, especially if you are thinking of buying a car anyway in the near future.

In fact, it has always been possible to buy a Tesla or any car for Bitcoin. You must first sell your bitcoin for cash, then use it to buy a car.

Whether you cash your bitcoins to spend on Tesla or trade indirectly for the new Tesla keep in mind that you will have to pay tax on the amount you have received in the value of your bitcoin - at least in the U.S. In, said accountant Ryan Lossi.

Tesla itself bought Bitcoin worth billion 1.5 billion by announcing that it had recently contributed to Bitcoin's volatility this week - showing confidence that it will help move the digital currency to new record highs on Monday.

In this way, Tesla has made Bitcoin a more lucrative way to buy one of its vehicles, at least for those who already had the currency.