Is Retail Ready for Crypto Payments?
Rumors are swirling about a partnership between the world’s biggest crypto and online retailer. Here’s why I don’t buy the hype.
Cryptocurrency traders, particularly those invested heavily in Bitcoin, have been desperately searching for good news for months now.
After reaching highs of more than $64,800 in late April, Bitcoin prices have been in a freefall ever since, losing nearly 55% of its value before finding support around the $30,000 mark.
But now that Bitcoin has found a floor following its precipitous fall, it badly needs a catalyst to attract new buyers that may be wary of investing in an asset that just lost half of its value in a matter of months.
Well, the world’s largest online retailer may have just supplied a huge incentive for traders to jump back into Bitcoin.
And nearly the entire digital market is riding the wave of positive sentiment following this massive development.
But I’m not convinced it’s the watershed moment some are making it out to be.
Where’s the money?
By now, it’s no secret that almost every new venture Amazon.com, Inc. (AMZN) has undertaken has been a huge success. Over the last twenty years, Amazon has grown into the world’s leading e-commerce platform, becoming nearly synonymous with online shopping.
That’s why Bitcoin investors were so excited about yesterday’s news.
While at this point it is still just speculation, it seems as though Amazon may be preparing to allow cryptocurrency as payment for the goods it sells on its platform.
The conjecture began after Amazon posted a job listing for a “Digital Currency and Blockchain Product Lead” at its Seattle headquarters. According to the job description, the applicant would be working with the Payment Acceptance and Experience Team, sparking excitement that Amazon is considering allowing crypto payments in the near future.
With more than $380 billion in sales in 2020, the prospect of allowing bitcoin as payment would be absolutely massive for the world’s leading cryptocurrency. I would give it the legitimacy and real-world value that it has had a difficult time establishing since its inception.
As a result of this news, Bitcoin stock surged more than 16% by yesterday afternoon as buyers piled back in.
And if you’re considering doing the same, there’s one thing I think you should know….
How do I get some?
Look, I love Bitcoin and cryptocurrencies in general. I think they have a bright future. I’ve even gone on record several times and correctly predicted some of the biggest bull runs for Bitcoin.
And it’s certainly exciting to think of what a partnership with Amazon could mean for Bitcoin.
But in the end, I do not think that Amazon will let customers use Bitcoin for purchases.
It’s the same reason why Tesla won’t be letting customers use Bitcoin to buy their vehicles in the future.
The problem lies in the extreme volatility. Unlike the U.S. dollar or other fiat currencies, the value of Bitcoin frequently makes wild fluctuations.
And that would lead to massive headaches for retailers.
Think of it this way…
Let’s say you could buy a Tesla with Bitcoin. If the value of Bitcoin moves 5% higher in an hour – which it is more than capable of doing – does that mean that the price of the car got 5% more expensive or the dealer just lost 5%?
Retailers don’t want to constantly have to adjust the price of goods and services to reflect ever-changing cryptocurrency values.
So, while I do like Bitcoin as a long-term investment with huge potential, if you were looking for a deal with Amazon or any other big retailer to send Bitcoin shooting right back up to its highs, you’re likely setting yourself up to be disappointed.
But that’s not to say you can’t make wads of cash from cryptocurrencies. In fact, I know just the guy to show you exactly how…
Don’t Miss Your Chance to Cash in on the Digital Gold Rush
As a 35-year Silicon Valley veteran and consultant for some of the biggest tech firms in the world, Michael Robinson has seen it all.
But he’s never been more bullish on any asset in his entire career than he is about cryptocurrencies.
Right now, there are 7,800 cryptocurrencies. And navigating which ones will boom and which will bust takes real expertise.
And that’s where Michael comes in.
Even if you’ve never made a single trade in your life, Michael is going to show you how you can turn even a small investment of just $1,000 into huge windfalls.
Ready to get started? Click here to learn more.
In the Spotlight: The Chinese crackdown is spreading…
In recent weeks, we’ve talked about the Chinese government levying fines and new regulations against big tech firms in an effort to limit what it sees as vulnerabilities in data security.
But now we’re seeing new developments from the communist state that indicate it’s not just the tech sector that’s in danger.
Late last week, Chinese regulators handed down new guidelines that aim to reform an industry it claims has been “hijacked by capital.”
Amid an extremely competitive environment in which students compete for the best school placements, education has become big business in China, with tutoring and education services companies seeing explosive revenue growth.
Chief among the new government directives is a rule that would prevent companies that teach school curriculums from making a profit, raising capital, or going public.
While those holding Chinese education stocks have been feeling the pain, this development is even more alarming as it makes it clear that the Chinese government is looking to crack down on many industries it feels have gotten out of hand in recent years.
While many investors are panic-selling, I’ll be looking for stock-specific opportunities to take advantage of falling prices. Stay tuned for a deep dive on my favorite Chinese stocks to play.