Over 80% of young millionaires keep at least part of their savings in bitcoin and cryptocurrency. Younger generations are quickly adopting digital currencies for their daily transactions.
Data from ECOMMPAY says that 20% of private jet users prefer — if given the opportunity — to charter a jet with Bitcoins, Ethereum, or Tether.
Crypto has many advantages over traditional currencies in the private jet charter industry. It makes transactions faster, safer, and more efficient.
Booking a private jet with crypto is fairly easy. We already investigated in detail how to quickly, securely, and easily charter a private jet with crypto tokens such as Bitcoins, Ethereum, or Tether.
In this article we explore why the cryptocurrency is becoming a big thing in the private aviation business, and what are the main myths and facts about cryptocurrency payments.
Crypto vs. paper money
Paper money and bank transactions are highly susceptible to fraudulent activities. Nearly 18 million Americans were victims of fraud in 2020. These scams included digital wallets and person-to-person payment apps.
Cryptocurrencies, on the other hand, are encrypted and strictly digital. Cryptocurrency is encoded with blockchain technology, making it difficult to reproduce — which ensures that crypto transactions are as safe as transactions come.
Therefore, companies using crypto transactions are less likely to be subject to fraudulent activities.
Maybe this is why the 2020 survey by HSB shows that 36% of small-medium companies accept crypto payments. Major companies like Wikipedia, Microsoft, AT&T, and KFC now accept donations or payments from crypto.
Let’s dive deeper and see what are the advantages of crypto payments in the private aviation business.
Facts about chartering a private jet with crypto
The emergence of decentralized currencies over the past few years has created a shift in the systems of money and its value.
When looking at the advantages of cryptocurrencies over fiat currency, we consider three criteria important for any money transaction between two or more parties.
The criteria are decentralization, transaction time, and transaction fee.
Decentralized currencies mean the government doesn’t regulate the currency.
Normal paper money and coins worldwide have a central authority — the Central Bank. The Central Bank influences the value of their country’s currencies based on their legal and other obligations.
These changes in currency values can be detrimental to the end consumers. International clients booking a private flight may be affected by the strain on conversion rates in times of a local economic crisis.
On the other hand, cryptocurrencies are free from bank interactions, absolving them from the biases of the banks.
Therefore, cryptocurrency has become a great financial instrument for customers who want to charter a private jet or indulge in other luxury goods.
Furthermore, the value of cryptocurrencies is not as affected by inflation, recession, and other economic factors, as standard currencies are.
2. Fast transaction time
You may want to charter a private jet on short notice. That requires the ability to make a quick deposit.
Normal bank transfers can take a few business days to process. The transaction and accounting time increases during weekends and bank holidays. In the end, only trusted clientele may be able to charter the plane under such circumstances.
Cryptocurrencies, then, are a better choice.
It takes between 3-15 minutes to make a crypto transaction as it is directed straight from the client’s wallet to the recipient without an intermediary and avoids bank bureaucracy.
With these digital coins, clients can make transactions any time of the day, making crypto tokens an absolute commodity in the private aviation sector.
3. Lower transaction fees
Digital currencies alleviate the issues people have with standard bank transactions. As stated in the previous section, bank transactions burden people with intermediaries and bureaucracies, as reflected in bank transaction fees.
Customers using a debit or credit card would have to pay a commission of 4–7% per transaction. Imagine paying for a $50,000 jet? The taxes become astronomically high.
The strain of transfer taxes caused by bank transactions is drastically reduced when dealing with cryptocurrency.
Cryptocurrency transaction fee hangs around 1%, making a big difference when clients think about the private jet charter rental cost.
Myths about crypto payments in private aviation — debunked
Although crypto transactions are becoming more popular, many are yet to adopt crypto for making payments. What are the reasons for skepticism?
Myth #1 — Crypto is a volatile asset
The International Air Transport Association (IATA) released a paper in 2018 analyzing Blockchain in aviation.
They highlighted one of the challenges of Blockchain technology in aviation: its volatility. The IATA analyzed data produced by BitInfoCharts to justify the skepticism of aviation customers towards crypto coins.
Cryptocurrency is commonly regarded as a volatile asset class due to the possibility of big upward and downward swings over shorter periods.
However, the volatility of Bitcoin, Ethereum, and their counterparts is an issue that can be accounted for.
There are methods to lessen the negative effects of volatility, such as dollar-cost averaging.
Stablecoins, which include USD Coin and Dai, are cryptocurrencies that have been created with low volatility in mind. The price of these coins is tied to a reserve asset like the U.S. dollar.
Myth #2 — Crypto is not real money
Critics of cryptocurrency judge Bitcoin as “not being money at all.” The criticisms come from a misunderstanding that the only difference between traditional fiat and digital currencies is Blockchain technology.
However, the bitcoin whitepaper is envisioned as a system of electronic payments that enables “any two parties to transact with each other without the need for any trusted third party”. This seals cryptocurrencies as a means of transactions like regular fiat currency.
Also, there is skepticism about the accountability of these cryptocurrencies.
In response, governments have mandated every crypto business implement the Know Your Customer (KYC) procedures under the Anti-Money Laundering (AML) regulations. There is also a Know Your Business (KYB) procedure in place, with similar guidelines.
The KYC procedure helps you to verify the client’s identity, full name, address, and date of birth. It also verifies the business, company house, beneficiaries, etc.
The advantage of KYC & AML is that it provides the same accountability that standard retail banks have.
Therefore, crypto businesses have proper structures just like formal financial institutions, making them less susceptible to illegal moves. It also makes cryptocurrencies available for auditing and accounted for in financial reports.
Cryptocurrency at the frontier of the private jets economy
Returning to everyday life after the events of the COVID-19 pandemic that shut down the world, many have plans to make up for the lost time. A survey revealed that 71% of travelers planned to do more travel to make up for what they have lost.
When asked how they are going to pay for the cost of their increased travel, about 22% of them said it will be through cryptocurrency.
This is an impressive demographic showcasing the excitement many have towards accepting crypto as a form of payment.
With COVID-19 as the spark and continued geopolitical unrest compelling companies and brokers to use cutting-edge, effective, and borderless ways of payment, private aviation is undergoing unprecedented change right now.
The demand for native cryptocurrency payments will increase as money continues to flow to the millennial age, meaning that businesses that choose not to embrace this secure, regulated type of currency will lose out on a significant portion of their prospective customer base.
How to book a private jet charter with crypto?
You can book a charter flight via an aircraft rental service or a private jet charter company. Many offer a seamless website or app service, but you can also contact them via email or phone.
The latter might be better because you can ask all your questions and quickly arrange everything with a professional.
Whether you book directly or use a broker, you’ll need to share your needs and preferences to get a custom quote. Select your destination, departure and return dates and time, passenger number, aircraft (type, size, etc.), accommodations, and in-flight amenities. Arrange all the details, including the cuisine and anything else you may need during the flight.
Choose your preferred payment method from the available options. With JetFinder you can charter a private jet with cryptocurrencies like Bitcoins, Ethereum, and Tether.
Feel free to contact us for any burning questions you may have or if you think we’ve missed anything crucial. We’ll be happy to provide additional information and help you choose the perfect charter flight for your needs and preferences.
Don’t wait — book a private jet today! Just reach out and we will find a private jet for business or leisure purposes, at operators’ prices.