Will Amazon Join the Blockchain Gang?
Friggin Bitcoin. Can’t live with it (because where would you put it?), and soon no one can live without it.
Cryptocurrency, or Monopoly money as I used to refer to it, is no longer something companies can write off as a fad or just something nerds use to make life more like a video game. The blockchain superstar, Bitcoin, hit as high as $50k, and some projections have it surpassing $100K in 2021. Even Tesla want a piece, saying “$1.5B check, please.” With other well known brands jumping on board, cryptocurrency is gaining credibility, awareness, and accessibility, so basically a seat at the table.
However, that might not be enough. Crypto-currency right now is like a baby in a high chair – technically at the grown-up table, but not adding much value besides noise and mess. (Clearly I’m not ready for children.) Cryptocurrency needs to get cozy with the folks who know how to seal the deal- like PayPal who welcomed them in early on, or Mastercard, who just deemed them “Priceless. Visa is playing a little hard to get for now, but will come around eventually.
But what will really take Bitcoin and its crypto cronies from hip IOU to legit form of currency? Someone like Amazon, the world’s largest ecommerce company, with over 150 million Prime users worldwide (which doesn’t include the non-Prime user base), accepting Bitcoin payments.
It hasn’t happened yet, and for good reason. There are infrastructure needs, market volatility risks, and the reality that Bitcoin isn’t ready for the kind of scale that Amazon requires. For context, Amazon’s record for transactions per second (TPS) is 636. Currently Bitcoin can handle 7…That’s the kind of stat that can ruin your locker room reputation.
But fear not, solutions are on the way that could resolve this TPS deficiency and then some. Plus, just like a Taylor Swift album drop, Amazon is dropping hints about their intentions. Like the fact that they own the domain “amazonbitcoin.com” and that you technically can make purchases with Bitcoin today, via purse.io. It seems like only a matter of time before Amazon changes the currency game. I would build my Bitcoin hotel on it.
