Amazon has emerged with some rather disappointing news for crypto fans. The company appears to have gone back and forth in time when it comes to accepting crypto payments, and now it looks like the company is not quite ready to move in that direction.
Amazon Eliminates All Hope of Crypto Payments
Amazon is one of the largest – if not the largest – retailer in the world. The online selling giant initially started out as a place to buy books, but now it seems like you can pretty much buy whatever you want through the company website. All you need is some login information and a valid payment method, and you’re all set to go.
But the fact that it’s not ready or even willing to accept crypto really downplays the power of the industry we’ve grown to love and respect so much, especially because it’s one of the many businesses out there not allowing crypto to serve in its original capacity. While there are many companies doing this, the fact that Amazon is so big hurts even more.
Initially, bitcoin and its crypto companions were designed to serve as payment methods for goods and services. It’s easy to forget this since BTC and so many other digital currencies have taken on speculative auras in previous years. They are looked at as ways to get rich overnight if one plays their cards correctly. They are also, in many respects, looked at as hedge tools; things that keep one’s wealth stable and steady during times of economic strife.
However, they were originally built as a means of pushing fiat currencies, checks, and credit cards to the side. Sadly, this hasn’t happened because they are often tied down with heavy volatility, which makes their prices hard to predict. They can go up and down at a moment’s notice, and thus many stores have been reluctant to say “yes” to crypto payments out of fear that they will lose profit. To an extent, we can’t really blame them.
Consider the following scenario: a person walks into a store and buys $50 worth of merchandise with bitcoin. For one reason or another, the store doesn’t trade the currency in for fiat, and 24 hours go by. Within that time, the price of bitcoin goes down, and that $50 turns into $40. The customer gets to keep everything he or she bought, but the store has lost money in the end. Is this a fair situation? Not everyone thinks so.
Perhaps NFTs Will Make a Good Entry to the Crypto Space
Amazon CEO Andy Jassy explained that while the company is not accepting crypto at this time, executives may get into the world of non-fungible tokens (NFTs) in the future. He commented:
We’re not probably close to adding crypto as a payment mechanism in our retail business, but I do believe over time that you’ll see crypto become bigger.