Amazon has denied reports claiming that it might soon start accepting Bitcoin as a form of payment, but the company is taking a cautious approach here as it doesn't seem to be entirely ruling out the possibility. Over the past couple of years, a host of well-known names such as Tesla (with an on-off history), Microsoft, AT&T, PayPal, Newegg, Home Depot, and Whole Foods have started accepting cryptocurrency payments. With Bitcoin being the crypto leading the whole cryptocurrency wave, the list is only going to expand in the near future despite the ongoing volatility and not-too-enthusiastic reception in government offices.
The biggest challenge in the path of Bitcoin is adoption, especially by platforms with a wide reach such as Amazon. Elon Musk’s Tweets and cryptic announcements continue to send the crypto world in a state of frenzy every now and then, prompting the netizen to ponder if one of the world’s richest people is actually serious about it. One tech leader clearly serious about the industry is Jack Dorsey. The Twitter founder and CEO has poured hundreds of millions into cryptocurrency investments, and is already making a hardware wallet.
Amazon is a platform that has the potential to change the whole landscape, but that doesn’t appear to be happening anytime soon. As per a Reuters report, Amazon has denied all speculations about accepting cryptocurrencies as a form of payment. However, the company adds that it is exploring how it could transform customers' shopping experience on Amazon. Unlike Musk or Dorsey, Bezos (or new CEO, Andy Jassy) hasn’t made bullish claims about the potential of Bitcoin as something that can lead to a transformative change in the financial industry. Plus, Amazon has already poured around $2 billion into its climate support fund, which makes things even more interesting as cryptocurrency mining has garnered some notoriety for its high energy consumption and environmental impact.
On paper, there is a multitude of factors that make Bitcoin payments a non-viable solution for Amazon, at least in the current market state. Volatility is a key cryptocurrency drawback, especially for Bitcoin. When news broke that Amazon might start accepting Bitcoin payments by the end of 2021, Bitcoin’s market value soared past the $40,000 mark before coming down again. The second key issue is the ease of use. There is still a learning curve when it comes to doing cryptocurrency transactions, which dissuades many from getting involved in the crypto business. And this also proves to be a hindrance to widespread adoption.
Of course, there are security risks, and even investing in a safer solution like a hardware wallet is not the most cost-effective option. On top of it, the whole stigma of being associated with laundering and other criminal activities is also something that is a harsh reality. Then comes the concept of taxation and regulation, which remains one of the biggest issues — and a missing piece of the puzzle — in many countries across the world. Not to mention, the high transaction fee is also a deterrent for buyers, especially for someone who goes to a platform like Amazon to spend only a few dollars on a cheap USB cable.
Source: Reuters
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July 29, 2021 at 12:05AM
