While motorsports news is hidden away in the sports section, the front pages of leading newspapers have been sharing a lot of news about Bitcoin and other cryptocurrencies as of late. But not too long ago, the world of motorsports and cryptocurrencies came together thanks to news about the ‘First Bitcoin-Sponsored Racing Car’ making a debut at the Indianapolis Motor Speedway in the United States.

The First Bitcoin-Sponsored Racing Car made its debut at the 105th edition of the Indy 500, which took place at the Indianapolis Motor Speedway. The number 21 car was designed by Ed Carpenter Racing and featured the Bitcoin logo all over the exterior. Team owner Ed Carpenter is a big believer in Bitcoin and wants to educate the public about it with the design of this car.

In this article, we’re going to take a deep dive into what’s going on around the First Bitcoin-Sponsored Car, why it was designed as such, and the controversies that surround the event as well.

Let’s get started.

What Is The First Bitcoin-sponsored Racing Car?

The first Bitcoin-sponsored racing car is the number 21 Chevrolet being raced at the Indy 500, a 500-mile racing event that takes place every year at the Indianapolis Motor Speedway located in Speedway, Indiana, in the United States of America.

Ed Carpenter Racing owns the car with help from Strike, the cryptocurrency payment platform led by Jack Mallers, which helped to facilitate the sponsoring process.

In going with the Bitcoin sponsorship idea, the Ed Carpenter Racing team also broke motorsports convention in another way. For this race car, the team did not accept sponsorships from any other sponsors.

Why Did The Team Design The First Bitcoin-sponsored Racing Car?

Owner of Ed Carpenter Racing, Ed Carpenter, admits to being a big fan of Bitcoin. That inspired him to design the Bitcoin-sponsored racing car as a way to educate and spread awareness among people, especially among fans of motorsports but also for the general public.

More importantly, Ed Carpenter has been quoted as saying that part of the reason behind all of this is to remove the negative stigma surrounding digital currencies like Bitcoin.

In the long term, he hopes that he can one day pay the team’s service providers using Bitcoin, even though that might not be possible for the time being.

Controversy Surrounding ‘The First Bitcoin-Sponsored Racing Car’

Still, some have pointed out that the phrase ‘The First Bitcoin-Sponsored Racing Car’ might not be entirely accurate. Bitcoin is a cryptocurrency or a financial asset. It’s not an organisation that can give out sponsorships. So, Bitcoin can’t technically ‘sponsor’ anything.

To be more precise, the number 21 race car was sponsored by individuals through a crowdfunding project facilitated by the Strike payment platform. By using a unique QR code setup by Strike, members of the public could send financial contributions in Bitcoin form directly to the race team through Strike.

Other Motorsports Getting Involved With Cryptocurrencies

While the first Bitcoin-sponsored racing car might have debuted at the Indy 500, other motorsports have also gotten involved with cryptocurrencies in their own unique ways.

Take the F1 for example, where Aston Martin and Alfa Romeo have chosen to launch their own cryptocurrency tokens. In this case, they’re partnering up with Socios, a platform that specializes in cryptocurrency tokens for sports fans.

But how can motorsports fans benefit from buying those tokens? Well, it allows them to take a more active role in the goings-on of their favourite race teams. For instance, fans who own those tokens might be able to use them to gain access to VIP rewards, exclusive promotions, and perhaps even taking part in the race team’s voting decisions.

Of course, fan tokens can also go up and down in value, making them tradable assets on exchanges that people can buy and sell.

Race teams like Aston Martin and Alfa Romeo also benefit from the sale of fan tokens, which also acts as an additional revenue stream for the teams.

About The Indy 500

Formally known as the Indianapolis 500-Mile Race, the Indy 500 is an annual race that lasts 200 laps, covering a total distance of 800 kilometres. The race features purpose-built single-seat, open cockpit race cars with open-wheel designs.

The engines for Indy 500 race cars are manufactured by either Chevrolet or Honda, and tyres are provided exclusively by Firestone.

Overall, all Indy cars carry 2.2-litre twin-turbocharged V6 engines with a maximum power output of between 410 and 520 kW. 

For more on the latest news in the world of motorsports, check out TOC Automotive College, the Best Automotive College in Malaysia.