Menu IconA vertical stack of three evenly spaced horizontal lines. The price of bitcoin, the red-hot digital currency, has been on retailers accepting bitcoin tear over the last year, but the number of top merchants who accept the cryptocurrency as a form of payment has retreated.
That’s puzzling to Jonathan Johnson, the president of Medici Ventures, the venture capital subsidiary of online retailer Overstock. Johnson played an integral role in getting the retailer known for its furniture stock to accept the cryptocurrency. That’s a decline of two from last year. The disparity between virtually no merchant acceptance and bitcoin’s rapid appreciation is striking,” the bank said. Costly transactions is one reason the bank says retailers have been slow to accept bitcoin, but Johnson thinks this is a moot point. The cost of accepting bitcoin is very low,” Johnson said.
It’s actually cheaper for us to complete a bitcoin transaction than it is to complete a credit card. To be sure, that’s likely because the transaction cost for bitcoin falls on the consumer, not the retailer. Johnson thinks if customers are willing to pay for that cost, then they should have the option. Retailers might be weary to accept bitcoin because of its wild price swings. Ethereum, another cryptocurrency, flash crashed on June 21. 10 in a matter of minutes before recouping its losses.
It stands to reason that retailers are nervous. They don’t want to take in coins that could potentially lose nearly all of their value. But that reason doesn’t make any sense,” Johnson opined. It is easy enough at the time of transaction to turn it into fiat currency. Cryptocurrency fanatics have been clamoring for more retailers to accept bitcoin.
At least 2,100 petitioners on Change. 100 in bitcoin to the financial directors at 20 of the top online retail brands including Amazon and Airbnb. Airbnb, thus far is the only firm that has accepted the coins, according to an article penned Thursday. Johnson thinks those firms should pay attention. I don’t know why a CEO wouldn’t want to make it easier for folks to spend money,” he said. Get the latest Bitcoin price here.
Menu IconA vertical stack of three evenly spaced horizontal lines. This story was delivered to BI Intelligence “Payments Briefing” subscribers. Out of the leading 500 internet sellers, just three accept bitcoin, down from five last year. The peak is limiting the benefit for both customers and merchants in accepting bitcoin. Customers: As bitcoin’s price has skyrocketed, the report found that customers holding the currency seem to be more interested in holding it to make money rather than spending it on goods that could be purchased in other fiat currencies. And when they do try to spend it, it often comes with high fees, which eliminates the utility for small purchases, or it takes a long time to complete the transaction, which could be a turn-off. Merchants: Lack of demand on the consumer end isn’t prompting merchants to invest in the infrastructure required to accept bitcoin, something that’s magnified by insufficient support or effort in increasing the acceptance network from those behind the scenes.