Wealthy bitcoin holders are reshaping luxury travel industry: 'It's really hard to go back'

The luxury travel industry is getting an infusion of wealth from an up-and-coming currency — but the boom could ultimately wreak havoc on the destinations visitors love the most. 

What's happening?

As the Financial Times detailed, bitcoin-rich travelers are splurging on private jets, luxury hotels, and cruises as the cryptocurrency's value soars thanks to crypto-friendly policies in the United States. 

These ultra-wealthy bitcoin holders aren't just paying in cash. Luxury travel operators are increasingly accepting cryptocurrency payments amid "tremendous demand."

FlexJet chair Kenn Ricci told the Financial Times that his private jet company has experienced a "significant" boost in bookings from young bitcoin entrepreneurs who want to travel the globe.

"We save them time ... and time is the most precious luxury," Ricci said. 

"[You] can be in three cities in one day and still come back to see your family at night," added Nick Fazioli, head of commercial aerospace and aviation at investment bank Jefferies. "Once you've got used to private travel it's really hard to go back."

But should anyone get used to it in the first place?

Why is this important?

While it is possible to vacation in luxury at an eco-friendly resort, private jets are some of the most polluting modes of transportation in existence. Transport & Environment estimates that a private jet accounts for up to 14 times more pollution per passenger than a commercial flight. 

If bitcoin continues to be heavily involved in private jet bookings, the industry's outsized impact on the planet could compound significantly, leading to dirtier cities, increased healthcare costs, less pristine destinations for travelers, and reduced tourism revenue for impacted sites.    

Already, crypto mining can burn through more electricity than some countries use in a year, straining power grids and causing electricity prices to soar. 

What's more, many operators still depend on dirty fuels, even though the sector has made significant strides toward cleaning up its act. According to the University of Cambridge, more than half of bitcoin mining now relies on sustainable energy sources. 

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However, the surge in bitcoin-driven private jet bookings threatens to offset positive gains in an industry many argue could drive sustainable innovation and be used to fund green initiatives. 

What can be done about this?

A person close to SeaDream Yacht Club, which accepts bitcoin payments, told the Financial Times that one of the most valued commodities among the newly wealthy is "freedom of choice." 

"If you want to pay in crypto, we want to let you do that," they said. 

While crypto itself isn't inherently bad or good and other people are going to make their own choices, you don't have to be bitcoin-wealthy to explore critical climate issues and learn about how some of your decisions could impact the environment. 

If you decide you value protecting the planet when you vacation, you can stay at resorts that prioritize sustainability. Expedia's Green Hotels list is one resource to help you get started. You can also choose low-impact travel options such as high-speed rail whenever possible. 

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