Amazon: what would happen if it adopted bitcoin

The latest speculations about Amazon’s decisions to include bitcoin and crypto as a means of payment have sparked opinions and views on the possible consequences of the decision. 

Last Sunday, 25 July 2021, US e-commerce company Amazon.com Inc. appeared to be planning to embrace the crypto and blockchain world. Rumours stemmed from two announcements related to the company:

1. a job offer for a “Digital Currency and Blockchain Product Leads” published on Amazon’s official website
2. an interview with an Amazon “insider” who allegedly stated that the company would indeed be looking to enable bitcoin payments by the end of the year.

The interview was immediately denied by an Amazon spokesperson, who however seems not to have ruled out that the company has an interest in the crypto sector. The anonymous interviewee, in fact, stated that Amazon has specific plans for cryptocurrencies. 

Since Sunday, the price of bitcoin has seen a significant change. Basically, after fluctuating on an axis of $32,000, from exactly the Monday following this news from Amazon, the pump has seen it hit $40,000, something that has not happened since mid-June. 

Pure coincidence, the fact remains that despite the speculation of what has been claimed between Amazon and bitcoin, the price of BTC now seems to have moved the axis to $39,000. 

Amazon and bitcoin: moving 1.55 trillion dollars

In reference to the case that occurred, observers and consultants have pointed out that Amazon is indeed exploring the crypto market and this could be the trigger to move a $1.55 trillion market. 

In fact, Amazon would not be the first major company to accept cryptocurrencies. And the hiring of one person out of 1.27 million global employees may not be indicative of a major upcoming initiative.

But Amazon’s interest, it seems, can be read as a signal that digital currencies could one day move from marginal investments to everyday financial instruments like cash and credit cards.

Indeed, Bitcoin and cryptocurrencies are accepted as assets and positioned as an alternative to stocks or gold. The introduction of Bitcoin as a means of payment on Amazon would mean a new masterpiece for the world’s largest Internet company. 

In this regard, Spencer Soper of Bloomberg commented as follows:

“The company [Amazon] could set the standard for others to follow, like it did years ago with two-day shipping. Billions in quarterly revenue might conceivably become billions in crypto transactions”.

Nic Carter, a general partner at Castle Island Ventures, an investor in blockchain startups, said instead: 

“Using Bitcoin to buy a laptop on Amazon.com can trigger a “huge accounting headache” for shoppers, who will have to consider capital gains taxes when they redeem their cryptocurrency. Unless Congress enacts some kind of tax exemption for small transactions, he doesn’t see crypto catching on as a payment tool”.