Adelmo Silva
Writer
This week, the world’s largest online marketplace, Amazon, took the spotlight in the crypto market. First it was discovered that the company was hiring for a developer to work with digital currencies and blockchain technology, which set speculation on fire.
Next, rumors broke that Amazon would be accepting cryptocurrencies like Bitcoin, Ethereum, Cardano, and more. Also according to an Amazon insider, it was claimed that the company was even working on a coin of their own.
This resulted in all kinds of misreporting online, and Amazon eventually came to deny the rumors while saying they were committed to exploring cryptocurrencies. The denial in a sense, was an admission that Amazon was indeed considering crypto in some way, but how? Here’s what an Amazon cryptocurrency could mean for Bitcoin and Ethereum, and for the rest of the world.
What an Amazon cryptocurrency means for Bitcoin and Ethereum. Source: pexels.com
Bitcoin already beat Facebook Libra, what’s next?
Bitcoin is the first ever cryptocurrency to be created, and all other cryptocurrency came after seeking to beat it in some way but have ultimately failed. Bitcoin is said to be the best and potentially the most disruptive technology since the internet, but could an internet giant like Amazon come along and beat Bitcoin with relative ease? It is possible, but at the same time Facebook gave it an attempt with their Libra cryptocurrency, which has yet to see the light of day and we’ll explain why.
As deadly as a cryptocurrency issued by an internet giant with an install base and reach the scope of Facebook or Amazon’s would be, it comes with a major weakness: having to follow by the laws and rules the governments and regulators set. This is exactly why the Facebook Libra project, now dubbed Diem, never saw the light of day.
It went from the biggest deal in crypto, to a boring topic no one even cares about anymore. All of its partners have just about ditched the project completely, leaving Zuckerberg’s vision in danger.
Why decentralized technology matters
That’s not the only major difference between an Amazon cryptocurrency and Bitcoin or Ethereum. Bitcoin and other cryptocurrencies are decentralized technologies that prevent another third-party from influencing the protocol, issuance, transactions, or the total BTC supply.
The emerging asset class was created with Bitcoin as a way to prevent governments from bailing out banks and debasing money. Interestingly, the governments have been doing exactly that through stimulus money.
Stimulus money and the pandemic caused Bitcoin and other digital currencies to catch on like never before, and it could lure in more companies like Amazon or even Apple to the crypto space.
What an Amazon cryptocurrency could mean
If a company the size of Apple or Amazon were able to successfully launch a cryptocurrency of their own, the implications could be massive.
For example, there are over 200 million Amazon Prime subscribers that might immediately have incentive to begin using an Amazon cryptocurrency. An estimated 1 billion people own an Apple iPhone of some sort. This also means these users are part of the Apple ecosystem. All it would take for Apple to potentially require it to use certain applications and suddenly millions of users would be using it.
This would essentially bootstrap a cryptocurrency into adoption, rather than how Bitcoin had to grow on its own over time and network effect. Think of how much faster the network effect moves if there’s a support of an existing install base of such size.? Such brands could even advertise their cryptocurrencies at scale to a massive audience on packaging, within apps, and more.
Because cryptocurrencies are decentralized there is no marketing team, CEO, or other things involved. Some projects do have official leadership, teams, and funding, but Bitcoin does not. At the same time, Bitcoin is not subject to issues with Jeff Bezos or another company executive who suddenly gets into hot water for one reason or another.
Governments can’t stop Bitcoin, but they can stop Amazon
But again, no government will ever allow such project to see the light of day. Where the lack of leadership and a company behind it is a negative in some respects for Bitcoin when the government is involved this is a huge benefit.
There is no executive team or board to pressure, there is no CEO to fine, and there is no way to ever influence the Bitcoin protocol. Consensus and certain proposals voted on by the Bitcoin and Ethereum community can be implemented by supporting developers, but that is nowhere near the same situation.
This also means there is no way to stop Bitcoin or Ethereum, unlike what can be said about the likes of major tech firms like Amazon, Facebook, and others. The government can and will step in when they feel necessary or threatened, which is why Bitcoin’s code was built in the way it was.
Volatility: Bitcoin blessing and a curse
Another major problem with Bitcoin, however, is how volatile it is. This makes it an ideal asset for investing and trading. Many choose to trade Bitcoin with leverage on a margin trading platform like PrimeXBT to get the most out of its incredible gains throughout the years.
Bitcoin has reached over 250,000,000% ROI in the past ten years alone and is still very young. Paul Tudor Jones says that it is like investing in Amazon or Apple early, and given the supporting data provided in this research, these companies can grow enormous in size and scale.
As Bitcoin adoption continues, the cryptocurrency will become less volatile but for now, it can be like a rollercoaster for holders if they aren’t prepared for what crypto has to offer. Price discovery could take the price per BTC to unprecedented heights, even though the ROI has already gone so far already. Along the way, there will be substantial crashes, but it could be worth the ride in the long run.
Not having any Bitcoin exposure is quickly becoming riskier than having exposure to Bitcoin, even if the cryptocurrency is volatile. Trading can be a better way to manage this volatile capital over holding, so be sure to explore all available options.
SEE ALSO:
Pay Space
Our editorial team delivers daily news and insights on the global payment industry, covering fintech innovations, worldwide payment methods, and modern payment options.
