Everyone has heard of Bitcoin, but not everyone has heard of Amazon Coin. While the online retailer has launched a new service allowing customers to use their Amazon accounts to purchase a selection of digital currencies, including Bitcoin, some see the move as a prelude to mass acceptance of the digital currency. In a sense, Amazon may be the most influential company in the Bitcoin economy.
Bitcoin is still a relatively new currency, with few places where it can be used to buy things in person. This is likely to change in the coming weeks and months, with two big announcements: first, Amazon has agreed to start accepting bitcoin as payment for its services, and secondly, major credit card companies are working to introduce bitcoin-style payment processing.
Amazon announced earlier this year that it was now accepting bitcoin– a move that was met with some skepticism from the online marketplace’s customers, but could encourage other businesses to accept the currency as well.. Read more about amazon cryptocurrency name and let us know what you think.
Maybe Amazon isn’t really planning to accept Bitcoin (BTC) as payment for its products and services by the end of the year, and maybe Apple isn’t actually adding $2.5 billion to its Bitcoin balance sheet – both events were recently reported, but they are yet unverified. The issue remains: what effect will the internet giants have on the bitcoin and blockchain industries if and when they commit?
Would it encourage cryptocurrency adoption or reintroduce Bitcoin as a means of exchange? Would it give digital assets a stamp of approval and deter governments from banning blockchain-based tokens?
When asked whether the allegations were genuine, Kapil Rathi, co-founder and CEO of CrossTower – an institutional-grade crypto trading platform — stated, “This would be a tremendous vindication for crypto.” “For a company of this scale to integrate or provide crypto as a product would be a clear indication that there is substantial customer demand for it.”
The Amazon claim came from City A.M. in the United Kingdom, which said that an unnamed Amazon “insider” told the newspaper that the e-commerce giant may start taking Bitcoin before the end of the year. Even if the story were accurate, Roman Beck, a lecturer at the IT University of Copenhagen, told Cointelegraph that it wouldn’t have much of an effect on the industry.
“Amazon could have been a driving force in the tokenization of the e-commerce industry,” Beck said, “capitalizing on its massive installed base of worldwide customers.” Instead, it wasted its chance: “Amazon spent valuable years establishing digital leadership in the nascent token economy.” In his opinion, the business should have embraced cryptocurrency two or three years ago.
“Adding some Bitcoin to your balance sheet is what many businesses are already doing as part of their asset diversification strategy,” Beck said of the unverified social media claims that Apple was buying $2.5 billion in Bitcoin for its corporate treasury, its first major entry into crypto. It’s also not a huge issue anymore.”
Taylor Monahan, the creator and CEO of MyCrypto, a blockchain interaction interface provider, seems to concur with Beck on Apple. “We observed a rise in firms holding Bitcoin on their balance sheets in December 2020,” according to the report, which included Tesla, the electric car maker. “Nowadays, it’s notable when a business says they’re having it, but it’s no longer a revolutionary occurrence,” she said in an interview with Cointelegraph.
The Amazon announcement, on the other hand, may be more significant if it comes to fruition. “Are you using Bitcoin to buy and sell products and services? Monahan added, “That’s still substantially untapped.”
Where there’s smoke, there’s fire, according to Pat White, CEO of Bitwave, a supplier of digital tax and accounting software. The allegations about the tech giant may be accurate — if not in their precise specifics, then in their gist. In response to the Amazon story, he told Cointelegraph, “I believe it.” Despite the company’s denials, he believes it is probably certainly doing research in this area. “It’s fantastic news,” White said, “because all of the big [retail] companies would want to have their own money for their platforms.”
White also doesn’t think Amazon will be late to the crypto game. He went on to say, “Amazon needs to be cautious.” If it makes any significant changes to its operations, it will have to explain what it is doing as a public corporation. It has a long list of issues to address initially. How is it going to integrate crypto into its accounting system, explain the accounting adjustments to its audit committee, and so on?
It’s also unlikely that it’s only looking at Bitcoin. It might accept a variety of cryptocurrencies, and it would have to keep track of them all. It would need a variety of wallets. “There are genuine difficulties that companies face, particularly since they are a public company,” he thinks.
Is Bitcoin becoming more popular?
According to Lawrence White, a professor in George Mason University’s economics department and a senior scholar at the Cato Institute Center for Monetary and Financial Alternatives, if Amazon accepted BTC and it essentially worked from a business standpoint, Bitcoin and possibly other cryptocurrencies would gain “additional respectability.” This would be “greater news” for the industry than PayPal’s entrance into the cryptocurrency market in October, which was widely seen as a watershed moment.
“It would be a huge deal,” Pat White concurred (no relation to Lawrence White). Both Amazon and Apple, he added, may be “very important,” but for different reasons. He went on to say, “Amazon would spark Congressional hearings,” raising the issue of whether we were really becoming a corporatocracy – a society controlled by businesses. “Though, for the market, that would be very bullish,” he said.
Pat White added, “Apple would be important for another reason.” Apple’s supply chain is one of the world’s most complicated, so “if Apple could simplify its supply chain utilizing digital assets, that would be a huge thing.” […] It has the potential to alter the definition of supply chain.”
Facebook was the “first mover” in the field.
Beck has a unique historical perspective. “When Facebook launched Libra/Diem, the magic was broken,” he told Cointelegraph, adding, “That was the [sign] for Big Tech and other sectors to be ready.” “Amazon is late to the game and will undoubtedly have a market influence on Bitcoin demand, but Facebook was the initial mover,” he added, “but it is fair to argue that those two are already late to the game.”
Rathi disagreed with the notion that Amazon’s timing is inherently wrong. He told Cointelegraph that it would still be early compared to the overwhelming majority of businesses, and that it would also make Bitcoin more feasible as a payment mechanism, adding:
“It would provide Bitcoin holders with additional choices for spending their BTC, potentially boosting the currency’s usage as a means of exchange.”
Amazon’s adoption of BTC, according to Lawrence White of George Mason University, may make the world’s biggest cryptocurrency more feasible as a means of exchange — but only if people use it that way. At the moment, converting BTC to dollars and dollars to BTC isn’t exactly a painless procedure. “When your income is in dollars and your expenses are in dollars, it seems to be a lot of difficulty – a hassle,” he said.
For example, in 2014, Overstock, an e-commerce company, started taking Bitcoin payments. According to the New York Times, the company made almost $2 billion in sales in the first three quarters of 2020, but only “an average of $30,000 to $50,000 a week came from cryptocurrency,” according to Overstock CEO Jonathan Johnson. To raise Bitcoin’s status as a payment method, Amazon would have to do a lot more.
According to Bitwave’s Pat White, the issue may be irrelevant anyhow, since Amazon may not even take BTC if and when it joins the crypto market. “It’s likely that they’ll want to create their own currency, similar to gift card 2.0,” he said. That way, they can cut away the middlemen, such as Visa, which takes a 3% fee, and so on. Beck agreed that the firm should pursue a “Amazon currency,” which would allow effective machine-to-machine coordination and payments.
Is it possible that a crackdown will be less likely?
What effect could the entrance of tech behaving behaving behaving behaving behaving behaving behaving behaving behaving behaving behaving behaving behav Would a big shift in the crypto direction by Amazon or Apple make it less likely for the US to clamp down on Bitcoin or other cryptocurrencies?
“Alan Greenspan is reported to have stated that regulators cannot ‘lean against the wind’ to mitigate economic swings,” Beck said. “IT is that wind of change,” in the case of the burgeoning token economy. […] Any regulator who continues to oppose crypto tokens on a basic level is destined to fail.”
Illusion or reality: Which is it? Crypto demand is either sagging or about to surge.
Lawrence White was less convinced that the authorities are helpless in this case. He told Cointelegraph that the government couldn’t prohibit BTC as long as it’s peer-to-peer, but “the government can restrict it from being above ground,” which is likely enough to render it useless as a means of trade.
Meanwhile, how can one interpret the market’s extraordinary reaction to the Amazon reports – a 15% increase in BTC in three hours last Monday? It’s just another evidence of cryptocurrency’s tremendous volatility, and it’s not exactly a nice advertising for a potential means of exchange. “As we witnessed in the spring, the crypto market likes to respond aggressively to prospective headlines,” Rathi said, adding:
“The difference this time was that the headline came from a respected newspaper, lending it greater credibility. I also believe that crypto investors have been longing for good news after months of price declines.”
Overall, “This kind of adoption reminds me of 2013, when a major focus for Bitcoin was to utilize it for payments,” Monahan said, “but the narrative gradually shifted away from that and toward Bitcoin as a store of value.” If we return to the concept of utilizing Bitcoin for payments rather than only as an investment, it has the potential to greatly increase its value.”
“However, with the additional backdrop of El Salvador and the regulatory debate, more and more businesses adopting it will add to the significance,” Monahan said. “It has the potential to change Bitcoin in the next several years.”
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