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Will Amazon Accept Bitcoin?

Will Amazon Accept Bitcoin?
Photo by geralt from Pixabay

Does Amazon plan to accept Bitcoin as payment? This rumour spread like wildfire in the last week of July and brought a bit of optimism to the dull-moving crypto market. This is no surprise considering the crypto space is super reactive to news or rumours in the financial market.

Before clarification by the e-commerce giant, the rumour of Amazon accepting Bitcoin as payment was the talk of the town. As expected, the news encouraged speculators and optimistic investors to go bullish on Bitcoin, causing the price of Bitcoin to surge to about $40,000 within the short period. The gain was Bitcoin’s largest since mid-June 2021. However, on July 26, Amazon dispelled the rumours in an interview with Reuters.

Amazon Accept Bitcoin Payment: The Rumour

Amazon Accept Bitcoin Payment: The Rumour
Photo by Clard from Pixabay

Amazon’s post of a job listing for a Digital Currency and Blockchain Product Lead triggered a slew of rumours surrounding their plans for cryptocurrency integration. London-based financial paper — City A.M. was the first medium to publish this rumour claiming that Amazon planned to accept Bitcoin payments by the end of the year. They affirmed their information was sourced from an ‘insider’ at Amazon. The new Amazon job listing involved working on crypto payments and managing the tech giant’s digital currency roadmap vision. This fact seemed to lend credence to City A.M.’s claim.

The insider disclosed that Amazon’s plans to accept cryptocurrencies as payment have been in the pipeline since 2019 and further claimed that this initiative came from Jeff Bezos himself. It can be recalled that around 2018, Amazon fueled speculation that it was about to accept Bitcoin when it purchased several cryptocurrency-related domain names. The insider also told City A.M. that Bitcoin is simply the first of the eight cryptocurrencies Amazon is looking to include in its payment system.

Amazon Accept Bitcoin Payment: The Denial

Amazon Accept Bitcoin Payment: The Denial
Photo by tswedensky from Pixabay

A few days after the City A.M. report, Amazon came out to deny the rumours that it plans to start accepting Bitcoin payments by the end of this year. The e-commerce giant decided to clear the air and state its standing on the prevailing rumours. During an interview with Amazon’s spokesperson, they acknowledged that Amazon is interested in cryptocurrency. However, they said that they are only exploring its utility on their platform. This could mean that Amazon has a general interest in crypto but no specific plans laid out yet.

Speaking to Reuters on the matter, Amazon’s spokesperson said that:

“Notwithstanding our interest in the space, the speculation that has ensued around our specific plans for cryptocurrencies is not true. We remain focused on exploring what this could look like for customers shopping on Amazon.”

Based on these comments, the Amazon Bitcoin payment rumour may be an overstatement. It appears the company is only testing the waters.

 Furthermore, the spokesperson added that:

“Amazon believes the future will be built on new technologies that enable modern, fast, and inexpensive payments, and hope to bring that future to Amazon customers as soon as possible.”

For Amazon, their exploration of cryptocurrency utility may be driven by the desire to remain competitive in the future as new technology emerges.

How did this Affect the Market?

A brief look at the price chart of Bitcoin since the initial release of the reports by City A.M. shows that Bitcoin has experienced massive swings in its price movements since July 22. According to Reuters, the price of Bitcoin went up by as much as 14.5 percent after City A.M.’s report on Monday, July 26.

Unfortunately, following Amazon’s denial of the claims, the price has fallen from a high of over $40,000 to under $38,000. It is important to note that before the reports came, Bitcoin’s price was ranging between $29,000 and $32,000.

Amazon Bitcoin Payment: What does this all Mean?

Amazon Bitcoin Payment: What Does This All Mean?
Photo by Sophieja23 from Pixabay

Despite the Amazon Bitcoin payment being only a rumour, one can easily guess the effect of big tech companies delving into cryptocurrency. The confirmation of such news in the future would be enough to move billions in crypto market value.

However, this is just the market reaction. Integrating cryptocurrencies into any major big tech company will also improve utility and expose cryptos to many people—especially those who have taken an agnostic stance towards digital currencies.

Amazon isn’t the only corporation flirting with cryptocurrencies. Other tech companies like Twitter and Tesla have also come out with proposed utility functions for Bitcoin. This crypto enthusiasm is not reserved for tech companies alone; investment firms are also bullish on crypto. Recently, Rothschild Investment Corp. announced that it increased its exposure to Bitcoin by 300%. Whichever way you want to look at it, things appear to be gearing up towards cryptocurrencies as the bigwigs are all experimenting with these digital assets in one way or the other.

Amazon Bitcoin Payment: Summary

Amazon may not be accepting Bitcoin as payment anytime soon. However, this does not mean other billion-dollar companies will tow the same line. As it stands, it appears everyone wants a slice of the crypto cake. Will the provision of crypto payment mechanisms by big industry players lead to the mainstream adoption of cryptos? We cannot really say for now.

In the short term, we will definitely see massive market spikes as industry giants make crypto-friendly announcements. However, the long-term implications remain obscure. This is because nobody is really sure how these companies intend to deploy their crypto applications. We cannot also predict how successful these applications will be. It is best to keep our fingers crossed and monitor how things unfold.

This blog is for informational purposes only.
This does not imply or suggest investment in cryptocurrencies.

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