Now you can buy cars with Bitcoin: Lamborghini adds itself to list of companies that accepts the digital currency

• A Lamborghini dealership sold a Tesla Model S for an unknown sum
  
• Tesla Model S starts from £49, in the UK, which is around 81 Bitcoins
• Bitcoin value has risen dramatically with the price currently at $ (£)
• Bitcoin is a peer-to-peer digital currency that works without a central bank
• It can be bought with anonymity which supporters say lowers fraud
  
• While its popularity is increasingly, China and France have today warned about the risks of using the currency
  

By Ellie Zolfagharifard

Published: | Updated:

Do you have some Bitcoins burning a hole in your proverbial pocket?

If so, you can now buy a sports car from Lamborghini, who has become the latest retailer to accept the digital currency.

The luxury car group's Newport Beach dealership in Orange County, California, sold a Tesla Model S Performance yesterday to an unnamed customer.

The current list price for a Tesla Model S start from £49, in the UK ($, in the U.S.), which is around 81 Bitcoins.

Lamborghini Newport Beach yesterday sold this Tesla Model S electric car to an customer who paid in Bitcoins

WHAT IS BITCOIN CURRENCY?

Bitcoin is a distributed peer-to-peer digital currency that functions without any central authority, such as the Bank of England.

The currency was launched in and is traded within a global network of computers.

Bitcoins can be bought with near anonymity, which supporters say lowers fraud risk and increases privacy.

But critics say that also makes Bitcoins a magnet for drug transactions, money-laundering and other illegal activities.

A Bitcoin investor, Norwegian Kristoffer Koch, recently made more than half a million pounds after he forgot he bought £17 of currency four years ago.

The sale marks an ongoing acceptance of Bitcoin among retailers as its value continues to rise.

Last month the currency passed the $1, (£) mark for the first time since it was introduced in

The price of Bitcoins have since risen in the past several weeks with the price currently at $ (£).

Many retailers already accept Bitcoins, but up until now, they have largely been smaller companies.

Analysts claim the demand for Bitcoin follows increased awareness about benefits of the currency and a drive to move it into the mainstream.

The digital currency is increasingly being treated like gold, with some investors using it to hedge against currency fluctuations.

Unlike traditional banking, Bitcoins can be bought with near anonymity, which supporters say lowers fraud risk and increases privacy.

However, the Bank of France warned today about risks related to the digital currency, adding its voice to growing concerns about the unregulated, online money.

Bitcoin is not backed by any central bank or government, or by physical assets. Their value depends on people's confidence in the currency.

It has been gaining acceptance by the general public and investment community but have yet to become an accepted form of payment on websites of major retailers such as conwaytransport.com.au

The Bank of France said the price of Bitcoin in legal currencies was inherently volatile and users may find it difficult to convert to real money.

The Chinese central bank has also warned financial institutions on today against trading Bitcoin, which has proven particularly popular in China.

'I think bitcoin is definitely going mainstream,' said Bitcoiniacs co-founder Mitchell Demeter. 'I think as things progress, and the infrastructure is built, it will become easier for people to buy and sell'

Bitcoin was launched in and is traded within a global network of computers.

Its release is tightly controlled in a process of 'mining', mimicking a central banking system's control over the minting of money.

A Bitcoin investor, Norwegian Kristoffer Koch, made a huge profit, after forgetting he bought £17 of currency four years ago.

He recently found out he was sitting on a small fortune now worth more than half a million pounds.

Silk Road, which allowed users to trade in illegal drugs, required transactions to be made using the virtual currency Bitcoin

Bitcoins are stored in encrypted wallets secured with a private key. Mr Koch had forgotten his password but when he eventually remembered it he was stunned by how much they had jumped in value.

Despite concerns, the virtual currency is gaining hold among businesses such as Lamborghini, a key step to a bigger role.

‘I think it's definitely going mainstream,’ said Bitcoiniacs co-founder Mitchell Demeter.

‘I think as things progress, and the infrastructure is built, it will become easier for people to buy and sell, and so more people will start using it.’

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