joseph armstrong augusta Georgia | Amazon is the Biggest Threat to Bitcoin
Bitcoin has seen some success in recent years.
Moreover, last half a year was the
turning point on which the cryptocurrency grew beyond anyone’s imagination. At
one point in, no one thought would stop
nor have they thought that BTC did had weaknesses. In this article, we propose
a bit different agenda concerning the major threat bitcoin might face in near
future.
The Amazon Company had a different path than bitcoin
and is considered a powerhouse in the business world. Its decisions regarding
the token can have large implications on bitcoin, mostly negative. Read on as
we provide evidence on why should bitcoin enthusiast be worried over what
Amazon’s next moves can be regarding the BTC.
Bitcoin’s Path to Glory
If we are being honest here, what made bitcoins it
is right now, it is its infrastructure and trader’s enthusiasm. Networking is
infinitely important in the world of cryptos, especially for a giant such as BTC. From $2.000 worth of value
in July 2017 to $20.000 in January 2018, the road was bumpy even before that
period.
Yet, promoters, mostly volunteers have tirelessly
worked to include the coin as an additional
payment method in different companies. Microsoft, Dell, Tesla Motors and many
others have accepted (or at least in some way) the coin as one of the payment
getaways. The number of companies that accepted the token grew over the years,
though it is still very much far away from fiat currencies, such as EUR and
USD.
Being decentralized, the crypto depends on
word-of-mouth and implementation in various industries and business circles. To
make matters interesting there is no singular database where statistics like a number of firms accepting bitcoin is available.
It is a peer-to-peer platform where anything is possible and companies come and
go that accept it.
A little
bit About Amazon
Amazon does not a special introduction. Found in
1994, the company started off with a name Cadabra Inc. and has grown to be a
powerhouse that swings out $177 billion worth of revenues and $3 billion in net
income. Its assets now hold the value of
$27 billion, employing over 566.000 people around the globe.
If you ever thought about purchasing something
online, Amazon pretty much would be on the top of your search chart. The
variety of products that you can get form the company is vast, with many
companies opting to do their entire business through the Amazon platform. Add
to that supply chains working solely on Amazon and you get a whole new online
world, operated solely by one company.
That is the power we are talking about when Amazon is in question. It is not just about numbers,
revenues, and other financial indicators but also about an organization that holds
large sway over other businesses. Its owner and CEO, Jeff Bezos, is known to
have an almost predatory-like behavior towards small companies and publishers. The
main boss of the place is not afraid to take opportunities and to crack down on
things that are not to his liking.
BTC and Amazon
Currently, you can use bitcoins to purchase goods
and services online at Amazon. The company has not made a decision to accept
digital coins into its sphere nor are there any plans so far. Not officially
announced ones that are. There is no
telling what might happen next, especially now that bitcoin’s value is going
down.
Publishers and businesses operating on the platform, however, can use gift and bitcoin credit cards as means of payment.
So, in an indirect way, BTC is present even on
Amazon. In this way, the company behind the online marketplace includes the
crypto without moving a finger.
What might Amazon do
Concerning Cryptos?
Here is the thing – everyone is now into bitcoins.
Amazon, on the other hand, is an established giant in the business world and holds large economic power.
The mixture between the two can end up badly for bitcoin due to several reasons
that we need to mention.
To start off, Amazon might go directly against the
digital currency, exposing its weaknesses and refusing to deal with it. Right
now, fiats work wonderfully well for the platform while bitcoins have not even
scratched the surface due to its indirect way of flowing through the
marketplace.
In this situation, if Jeff Bezos decides to speak
out negatively about the token, bitcoin would be the one to lose more than
Amazon.
Next, the company might even try to develop its own
token. It would have immense power, due
to seer number of buyers and sellers in the Amazon’s marketplace. These tokens
would actually even hold worth outside of the Amazon’s platform, as they can be
used to get goods and services at any time at the most popular online retail
business.
Bezos might even decide to work with bitcoin’s
competitor, such as Ripple. Who said that BTC is the only token out there in
the digital industry? There are numerous other coins that have very similar
properties yet show great promise. Ethereum’s smart contracts would be the next
logical move, as they provide an actual security feature, rather than complete
decentralization given by bitcoin.
Potential Consequences
So what are potential consequences of the Amazon’s
movements? Here are some that we see to be the most likely:
- if Amazon develops its own token, many traders
would switch their investment funds to it form bitcoin, pushing the token don
in value as a result;
- the same goes if Amazon implements one of the existing crypto technologies within its platform as well
- if Amazon goes about against the crypto world as a
whole, concerned traders would create negative word-of-mouth, further impacting
the supply and demand market for the bitcoin. It would inevitably lead towards value loss and further disintegration
from various industries
As you can see, many people think that other coins
can hurt bitcoin the most. In our opinion, Amazon would be the biggest concern,
due to its far reach into different
business industries and from its sheer size. Although many companies, like
Microsoft, did accept the coin, the
infrastructure and networking still rely
on enthusiasts showing good faith in the
coin.
If that faith is shaken by a giant like Amazon,
bitcoin can be in trouble in the long run. Drops in value are only the start of
the issues here, as many traders, investors, miners, and businesses would wash their hands off the digital currency and
try to seek fortune elsewhere.
Comments
Post a Comment