Can we consider Amazon as Bitcoin biggest threat?
Over the past few years, a number of people have taken part in Bitcoin’s explosive growth. Families have invested their savings, teenagers their college funds, and even billionaires are now suggestive of putting 10% of all of your assets into this Cryptocurrency.
Due to this, a lot of money is at stake, including people’s saving and livelihoods. As an instrument of investment, Bitcoin itself presents a lot of problems. The number one being that it is extremely volatile and the price fluctuates.
It can drop as high as 20-30% in a day, or can be hacked by hackers. And the biggest problem presented is the fact that newer cryptocurrencies offer better privacy, scaling and programmability.
Most of the people are now tending to look at alternative digital currencies, which might be able to dethrone the current king.
Amazon, boasting of over 94 billion USD sales in 2017, handles almost all of American online operations and purchases across the world. However, despite offering a number of alternative methods for customers, it has yet to introduce an option from which people can pay using Bitcoin or any other cryptocurrency.
As a leader in the online retail world, it is in a prime condition to do so. Any cryptocurrency supported by this retail giant would surely see a surge of support. However, why has Amazon not done so yet?
Barriers
One of the topmost reasons why Amazon must be avoiding transactions with cryptocurrencies might be their limited transaction speed. The two top major Cryptocurrencies, Bitcoin and Ethereum have a transaction speed of 7 transactions per second and 15 transactions per second respectively.
Amazon previously peaked 600 transactions per second during last year’s Amazing prime sale. Even if a fraction of their current customer base decides to pay using cryptocurrencies, they would have to be stuck waiting for hours in order for the transactions to be confirmed, which would greatly hinder the customer experience.
Amazon might still be hesitant to allow cryptocurrencies with slower speeds lf transactions to be allowed on its site, however, the newer cryptocurrencies, like Ripple, which can allow 1500 transactions per second might have a chance to make it on the payment gateway of Amazon.
Amazon Supporting Cryptocurrencies?
Although there is no official statement from Amazon, there are several indications as to why Amazon must be considering the cryptocurrency space.
On October 31st, the retail giant had reportedly bought domains such as amazoncryptocurrency.com, amazoncryptocurrencies.com and amazonetheruem.com. This move might help us take a look into their future endeavours.
Amazon’s core principal is Customer Satisfaction. If the people demand, a cryptocurrency payment method will surely be on its way. Given that several shoppers buy goods overseas, digital currency will be an excellent way for people to purchase, without having to worry about exchange rates.
Potential Things to Happen
Amazon Might Stay out of the Cryptocurrency Sector
- In order to be a full-fledged currency, Bitcoin and several other cryptocurrencies needs to be adopted by merchants. It’s highly unlikely that Amazon will not opt for digital currency as payment methods, but if it decides to do so, cryptocurrencies will face a huge blow back.
This would not kill cryptocurrencies for sure, but it has the potential to greatly hurt digital currencies as a currency.
Amazon Could Opt For a Competitor
- With Bitcoin’s slow transaction speed, it is likely that Amazon won’t go for it. Amazon might opt for a competitor with better transaction speed, such as Ripple with its 1000+ Transactions per second. This could definitely endanger Bitcoin’s potential and wort
- Whatever coin Amazon chooses will surely see a huge surge of support from the masses, and the currency may climb to the top, dethroning Bitcoin.
Amazon Might Create Its Own Coin
- Amazon Prime is an indication how Amazon does not want its customer to waiver off to other services for entertainment, and how the company wants its developers to cover a wide amount of services. As of now, it holds services such as video streaming, cloud storage etc. If the giant sees a potential in the digital currency space, it definitely has all the resources to dive deeper into it.
- If they decide to introduce their own coin, it can span over various services, such as Amazon Prime to Twitch, to Audible, allowing its customers to transfer funds easily within the ecosystem created by the company. Also, it can offer 5% to 10% discount with the use of its own coin to widespread its growth.
This is potentially the most dangerous of all scenarios for Bitcoin, which can dethrone it.
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