A while back you will remember I posted about rumours of Amazon entering the crypto markets, you will also remember that there was a huge bull run with Bitcoin after some news of Amazon possibly accepting Bitcoin as a form of payment. Things have changed over the last few months and actually I now believe that Amazon could well be the Bitcoin killer and he's why....
Amazon may be preparing for war
Amazon has been very secretive, as always with all big companies, about there movements towards cryptocurrency and wether or not they will be adding a crypto payment gateway. Not too long ago its now no secret that Amazon actually purchased some domain names directly related to the crypto niche... Is this to cover their tracks or is it a glimpse to the future plans of Amazon?
On October 31st 2017 Amazon purchased the following domains names, amazonethereum.com, amazoncryptocurrency.com, and amazoncryptocurrencies.com. This was of course causing a stir with prices towards not only Ethereum but also Bitcoin.
So on a positive note for Bitcoin and a hopeful future partnership with Amazon, they do already have sell amazon gift cards for bitcoin so if Amazon were to accept Bitcoin on site as a gateway then this would simply cut out the middleman.
So your most likely wondering why I think Amazon could be a big threat to Bitcoin and my bold statement saying it is preparing for war well Amazon’s core principles is ‘Customer Obsession’ right? If customers demand a cryptocurrency payment method then quite simply Amazon will more than likely give them what they want.
The three Amazon crypto factors
Here is what I and many other marketers and crypto enthusiasts think will happen.
Amazon will adopt one of Bitcoins current close competitors
As I mentioned above Amazon's core principle is to feed their customers obsession and if they were to add a crypto payment gateway then they would need it to be very fast and efficient. This straight away spells out bad news for Bitcoin and here is why... Amazon hits a lot of record transactions especially when they hold sales within their Prime service, they hit a peak of 600 transactions per second and this was over 12 months ago. So what does Bitcoin currently handle ? It isn't the answer that Amazon wants to hear ... believe it or not in comparison Bitcoin only handles, on average, 7 transactions per second ( 7 TPS ).
So who can offer Amazon better ? Well currently Ethereum can handle around 15TPS which still isn't what Amazon would be aiming for but there is another coin which is in the top 3 called Ripple (XRP). Ripple can actually currently handle up to 1500 transactions per second which would be a perfect companion to Amazon.
We all know what consequences rumours have on things and Ripple's price on the market cap rocketed at the talks of the largest Bitcoin wallet in the world, Coinbase, adding it to its crypto assets. Currently they only list Bitcoin, Litecoin, Bitcoin Cash and Ethereum. This never happened and Ripples price fell back down to its average.
So Any deal with Amazon will rocket the partner cryptocurrency upwards. If Amazon chooses to go with a rival coin then it probably wouldn’t kill bitcoin, but it could knock bitcoin off of its top spot.
2. Amazon to stay out of the crypto market all together
In order to cross over from investment to currency, bitcoin needs to gain widespread adoption from merchants. It’s unlikely that Amazon will stay out of crypto indefinitely but if it did bitcoin would certainly suffer from being excluded by the world’s largest online retailer. This wouldn’t kill bitcoin, but it would hurt its potential as a currency.
3. Amazon to create its own cryptocurrency
Amazon has its hands in a number of pots and the company simply loves to get involved in anything that holds a lot of potential. Look at Amazon prime for example, they got involved in the video streaming market and doing great. So is an Amazon ICO possible ? why not! its not the first time a large company will have released their own token for a public crowd-sale, Chat giant Kik messenger launched an ICO raising $75 million dollars. Overstock, a publicly traded e-commerce company, has seen its stock raise by 30% since announcing it plans to ICO in December 2017.
If amazon were to create a coin such as AmazonCoin for example then it could integrate this into its many services such as Audible, Twitch and Amazon Prime and even offer discounts that other cryptocurrencies wouldn't be able to compete with.
This obviously is the most dangerous scenario for bitcoin but it does rely on Amazon taking a big step forward towards the crypto market which, apart from the alleged domain purchases, they have so far avoided.
Whats your thoughts ? Please comment below how you feel about the current climate with Bitcoin and giants like Amazon moving in to battle...