Crypto transactions are no longer a rarity in the watch industry and when buying watches. Exclusive brands are catering to customers’ desire to pay with cryptocurrency just like renowned stores. The service is not the only link between Ethereum, Bitcoins and luxury watches. Digital currency and physical masterpieces are linked many times – traditionally and recently.

Expected and welcome – crypto payments for watches

The noble timepiece comes into view, pleases at first sight and is bought within minutes. No sooner do experienced watch fans read that sentence than they shake their heads. Normally, careful research and consideration are made before adding a new masterpiece to the collection. As important as the timelessly fascinating design and the technically brilliant inner workings is the value stability of luxury watches. After all, we’re talking about investments where you don’t want to lose money under any circumstances and, at best, book a handsome profit if the sale comes up at some point.

Those who choose collectibles wisely are generally smart with their reserves. In view of the lack of yield opportunities, this speaks against leaving large sums in the checking account. In addition to classic investment options, it has become established to invest savings in cryptocurrency and use them to realize personal wishes later on.

Can you pay for watches with Bitcoins?

Yes, many manufacturers and retailers of high-quality timepieces accept this modern means of payment. The purchase amount is either transferred directly to the seller or settled via a suitable online platform. The immediate purchase of watches with cryptocurrency is similar to the usual money transfer and payment transactions in advance. The basic prerequisite for this is that both parties have a wallet for bitcoins, for example – the equivalent of a wallet or bank account.

There are numerous digital currencies besides Ethereum and Bitcoins that modern savers invest in. Those with more specific preferences still want to fulfill their watch dreams without any problems. Contemporary specialty stores cater to this and process crypto payments for watches via popular platforms, for example BitPay. The services of such providers include payment apps that can be used to buy everyday items such as pizza service or special items such as a watch from an exquisite manufacture.

What do cryptocurrency and luxury watches have in common?

Masterpieces of modern watchmaking are based on complex technology. The same is essentially true for cryptocurrency, with the difference that it is not physically tangible due to its virtual nature. Ethereum, Tether or Cardano? Investors are savvy in weighing what they invest in. Anyone who secured a Bitcoin (BTC) for US$0.07 at the official debut in 2009 could not even afford a pizza for it on May 22, 2010. That’s because they were charging 5,000 bitcoins for it at the time. In April 2021, the exchange rate for 1 BTC was more than 50,000 euros, but this had more than halved by the summer of 2022.

The examples illustrate what cryptocurrency and horology have in common: Anyone who invests their money in it needs not only expertise but also a modicum of courage for speculation and plenty of perseverance. Similar to digital currency, watches as investment objects are affected by fluctuations in value and often only turn out to be lucky finds after long lean periods.

The enormous appreciation of the cryptocurrency boosted investment in watches with Bitcoins, because luxurious masterpieces became affordable for a new target group. However, many a proud owner had to part with his noble timepiece again quickly because he was surprised by the crypto crisis. Watch collectors were therefore pleased with an unusually large selection and comparatively moderate prices in the second half of 2022. Currently, some investors are flirting with spending some of their Bitcoins on watches. They are not only considered a proven investment strategy, but also score points with an attractive added value: You hold something in your hands that can be marveled at and worn at will.

Bitcoins, luxury watch or both – statements with an individual touch

For the most part, the hand-picked collection rests in the watch cabinet, so that signs of wear do not relativize the value of the investment watches. However, a selected portfolio regularly completes the outfit for business appointments, leisure activities or festivities. Luxurious wristwatches inspire with their extraordinary look and sophisticated functions, which are warmly welcomed in everyday life. At the same time, they are an unmissable statement that testifies to a creative and smart approach to finances. Those who juggle a cryptocurrency like Ethereum are also positioning themselves beyond the mainstream. The desire to make an obvious statement is understandable, and watch manufacturers are increasingly fulfilling this desire with unusual collections.

Hublot launched the Big Bang Special Edition “Meca-10 P2P” to mark the 10th anniversary of the cryptocurrency. The Swiss brand limited the number of pieces of the Bitcoin watch to 210 pieces, cleverly picking up on the fact that, according to the limit, there may be a maximum of 21 million Bitcoins. The special collection was not only a tribute, but also an opportunity to express one’s personal passion for cryptos. The engraved transaction number makes each piece unique. It also reminds us that only digital currency was accepted for the special edition.

Cryptocurrency as a means of payment for watches with blockchain gadgets

Jacob & Co goes one step further in the fusion of digital and analog status symbols. The Astronomia Metaverso luxury watches are a cryptocurrency statement of the highest order, with which the financially strong owner can adorn himself twice: in the virtual world with the acquired NFT work of art and – in the case of part of the opulently designed collection – also in real life with the real existing counterpart. Frank Muller takes a somewhat more pragmatic approach to the concept of a Bitcoin watch: The Vanguard Encrypto collection of the noble Geneva brand integrates the wallet for cryptocurrency into the timepiece with tradition-conscious manufacture quality.

Sounds exciting, but more tangible would be better? Coming right up: The key element of Ethereum, Bitcoins and every other cryptocurrency is the blockchain. It scores high on security when it comes to storing and transferring information. This is practical, for example, if you want to attest to the authenticity of a valuable object or define the rightful owner. Breitling has recognized this opportunity for itself. Since 2020, the certificate of the renowned manufacture has been based on a blockchain, which makes the luxury watches significantly more forgery-proof. It also makes it possible to clearly define ownership rights and archive important details for watch history.

Der Beitrag Cryptocurrency and Horology erschien zuerst auf Uhrinstinkt Magazine.

It is the starting signal for a new, digital era: As the world’s first watch brand, Breitling will deliver all timepieces with a blockchain-based passport since October 2020, which is intended to guarantee maximum counterfeit protection. Each watch will receive its own NFT, which, in addition to guaranteeing authenticity, will enable tracking of repairs, transfer of ownership rights and quick access to product information. Find out what exactly is behind Breitling Blockchain here.

Why is the Breitling Blockchain useful?

For as long as there have been luxury watches, buyers on both the new and second-hand markets have been asking themselves an existential question: How do I know that my model is genuine? Nothing would be more bitter than the realization, after years of saving for the personal dream watch, that it is a fake. The advances in the fake market are disturbing: while in the past you could spot a fake Rolex by obvious flaws like printing errors, crooked numerals or extreme inaccuracy, today’s copies are indistinguishable from the original even under a magnifying glass. Often, the “premium fakes” are equipped with ETA movements to ensure reliable functionality. Opening the case back is no longer a guarantee of safety these days, because the professionals themselves imitate the look of the original movements. And worst of all, even the printed certificates of authenticity traditionally included with every luxury watch can now be replicated with frightening precision.

A digital certificate for the luxury watch, based on blockchain technology, could put an end to the triumphant advance of the international watch counterfeiting scene at a stroke. Because while physical certificates are comparatively easy to imitate, the NFTs on which Breitling Blockchain is based score points for their immutable and thus extremely forgery-proof character.

How does the Breitling NFT work?

For all non-informaticians: NFTs (Non-Fungible Tokens) are digitalized forms of assets. A specific value (for example, a property, a work of art, or a wristwatch) is assigned a token that represents the ownership rights to the respective object and can be traded. Integrated into a blockchain whose individual information blocks are always traceable, this NFT cannot be copied. To implement the complex technology flawlessly, Breitling is working with Arianee, a French specialist in blockchain-based certificates of authenticity. The Arianee protocol enables the creation of a digital identity for each individual watch. It is immutable because it is stored in a central database that no one can connect to for the purpose of manipulating data.

How to get access to the digital passport?

Watch owners are unaware of the background processes of the Breitling NFT and its complexity. The information stored in the digital identity, which primarily includes the serial number, purchase date and warranty status of the timepiece, but also the coveted COSC certificate, is clearly mapped in the blockchain watch passport. The latter is accessible exclusively via a digital wallet. For customers, the process is as simple as “1 scan, 1 click”: a validated e-warranty card is included with their new watch, and they scan the QR code with their smartphone. An image of his watch then appears with all the relevant information and the option to download the wallet. It is exclusively via this wallet that the digital identity of the Navitimer, Chronomat or Superocean can be viewed.

What are the benefits of Breitling blockchain technology?

If the wallet is stored on the owner’s own device, an integrated transfer function opens up to prove the authenticity of the watch. But the function of the passport goes beyond a pure digital watch certificate: If, for example, you want to sell the timepiece and transfer the ownership rights to the successor, this can be done with just a few clicks. At the same time, the digital watch certificate contains all product information, including the complete history: What maintenance was performed at what time? When was the watch registered? On what date was it purchased? Repairs are stored in the Breitling Blockchain watch with the help of a time stamp, as is the warranty status. The latter can be extended via the passport. In the future, the functions will be supplemented by insurance services that can be taken out against loss and theft. Shorter response times in the event of an emergency are a key benefit of this expansion.

New customer service platform established

For Breitling, a digital watch certificate goes beyond the benefits mentioned so far. The manufacturer wants to use blockchain technology to build a new customer platform and grant wallet users preferential access to events or limited editions, for example. If one has a prominent purchase history with the traditional Swiss brand, all watches in the collection can be clearly managed. Breitling emphasizes that its digital certificate for the luxury watch grants maximum data protection and users retain full control over their personal information. At the same time, the manufacturer is using the new digital platform to personalize the customer experience and gain valuable information about the preferences of its watch fans. These in turn could be targeted more specifically to new offers in the future and benefit from a “symbiotic customer-brand relationship,” as the manufacturer itself puts it.

Other brands follow suit

The new Breitling Blockchain can be used to secure all watches delivered from October 13, 2020. Added to this are the 2,000 models in the limited Breitling Top Time collection, in which the technology already celebrated its premiere a few months earlier. These days, it doesn’t matter whether you buy a Superocean, Chronomat or Navitimer – every owner has the option of depositing their timepiece as a digital asset. There is, of course, no compulsion to do so, but in our opinion, the advantages are too great to forego the split-second registration.

In the future, we can expect the use of blockchain technology to increase across the watch industry. Already, Breitling’s move has inspired other brands, such as Hublot and Bulgari, to set up digital safeguards. Ulysse Nardin has also followed suit.

Given the growing market for both new and used timepieces, as well as the frightening advances of watch counterfeiters, the case for blockchain is stronger than ever. It could be the decisive weapon to grant buyers of valuable watches maximum security in their future purchases and save the industry from billions in damages. And what will become of the beautiful, ornate certificates of authenticity of days gone by? For us, there is nothing to stop us enjoying the nostalgia of the printed word in the future – in parallel with the blockchain.

Der Beitrag Breitling Blockchain erschien zuerst auf Uhrinstinkt Magazine.