News reports are making the rounds on social media and the Internet that Amazon, the world’s leading online retailer, has decided that it will begin accepting Bitcoin for purchases.
According to Squawker.org:
According to a newsletter from The James Altucher Report, Amazon will soon begin accepting Bitcoin, which they will officially announce as early as October 26th during their earnings conference call.
Here is a screenshot from the report:
First, we’ll examine the impact of this announcement, and then we’ll take a look at its credibility.
The Bitcoin Coaches, in the Amazon best-selling book “Bitcoin Decoded,” predicted in 2014 that Bitcoin would grow to the point that mega-retailers and their customers would both have financial incentives to conduct transactions in Bitcoin:
“Right now, we are trying to discover the true value of Bitcoin,” according to the book’s initial edition in 2014. “We do that by the price fluctuation, which is why it goes up and down. At some point it should stabilize, much like gold has stabilized.
“As more people are shopping online, it is completely within the realm of possibility that companies like mega-retailers such as eBay, Amazon, Walmart, Best Buy and others might accept it.
“Bitcoin may become another form of payment, just like MasterCard or Visa. Why would a business owner be interested in that? Well, the transaction fees they have to pay to convert the transaction into their currency are much less. It is only 1 percent, compared to credit card transaction fees of at least two or three times that.
“Why is it less? It is a lot harder to commit fraud with Bitcoin. It is much more difficult to steal a Bitcoin than to steal a credit card number.
“Other advantages to businesses include the clearing process back to local currency does not take as long. The clearing process to receive money on Visa or MasterCard for a merchant can be 35 days. The clearing process to receive your money with Bitcoin is about two days. The result is that it speeds up cash flow.
“So the adoption will be pushed along by more people hearing about Bitcoin’s advantages through education and word of mouth. People like you are seeking out books like ours. Bitcoin symbols are beginning to appear on a lot of the websites and stores where Bitcoin is accepted as a form of payment.”
If Amazon starts to accept Bitcoin, then the entire e-commerce community will have to follow suit. They will investigate Amazon’s rationale. Once they understand that Amazon can actually streamline and reduce transaction costs (savings that could be passed along to customers who pay in Bitcoin), the market will be forced to follow the leader.
What this would mean for Bitcoin is a precipitous increase in value due to the corresponding increase in demand. There is a limited supply of Bitcoin — only 21 million will ever be created. On the other hand, governments (like the U.S.) print millions and millions of more bills when there is a perceived need.
Amazon has more than 300 million customers worldwide. Those people — 99 percent of whom currently have very little understanding of Bitcoin — would suddenly want to learn more about it and why it would be to their advantage to have it and spend it.
Now … regarding the veracity of the report … here’s what Wikipedia tells us about James Altucher:
James Altucher is an American hedge fund manager, entrepreneur, best-selling author, venture capitalist, and podcaster. He has founded or co-founded more than 20 companies, including Reset Inc. and StockPickr, and says he failed at 17 of them. He has published eleven books, and he is a frequent contributor to publications, including The Financial Times, TheStreet.com, TechCrunch, Seeking Alpha, Thought Catalog, and The Huffington Post.
Altucher is cited on a regular basis by some pretty reputable sources. On the other hand, consider that there are reports out there like this:
In fact, Amazon shows no interest in any additional payment methods right now. It would be an interesting development if true, though.
That report, if you read through it, is completely unsourced and is basically the opinion of the authors. Nothing wrong with that as long as you understand what it is.
The Bitcoin Coaches have no additional sourcing to either verify or discount the Altucher report. We do point out that it lines up with what we told you more than three years ago about the growth we expected for Bitcoin. While we can’t verify the late October date cited by Altucher, we believe it will happen eventually.
If you are someone who continues to be intrigued by all of the buzz about Bitcoin, but you don’t know how to get involved, visit our quick-start guide. It will guide you how to acquire a small amount of Bitcoin so you can get your feet wet without a large financial investment. In fact, you can invest as little as you wish. One of the Bitcoin Coaches started years ago by buying $10 worth, which we would recommend for complete beginners.
The Bitcoin Coaches’ objective is to help people make money with Bitcoin. We’re happy to answer any questions, so shoot us an email at firstname.lastname@example.org, and we’ll respond shortly.