Rumors have been swirling since the weekend that Bitcoin could soon get a huge boost in the form of a change in Amazon’s policies. The rumor holds that Amazon could begin accepting the most popular cryptocurrency as payment, which could be a huge turning point for the new currency standard.
The biggest concern any mainstream investors have with regards to cryptocurrency is the difficulty stakeholders have in actually using it as currency. Bitcoin has functioned much more like a high-risk investment than a currency standard in the decade since its creation. At times, some companies have accepted the standard as payment, like in the case of Tesla. The electric car company accepted Bitcoin as payment for roughly two months before reversing course.
Bitcoin Surges with Amazon Rumors
As the rumors swirled that Bitcoin could become a legitimate form of payment, investor sentiment soared. On Monday, Bitcoin was up an eye-opening 12 percent. Monday morning, Bitcoin was trading over $38,000 per coin, a reversal from its nosedive earlier in July. That price puts it at the highest it’s been since June.
Other crypto standards, like Ethereum, have also been bolstered by the news The suggestion that a massive online retailer could begin accepting cryptocurrency could be just the push that the new technology needed to achieve more widespread acceptance.
Where Are the Rumors Coming From?
These rumors are based on a job listing posted at Amazon’s Seattle-based headquarters. The job listing calls for a “Digital Currency and Blockchain Product Lead,” leading many enthusiasts to believe that this indicates Amazon’s desire to accept crypto as payment. This speculation is mainly due to the position being listed under the umbrella of Amazon’s Payment Acceptance & Experience Team.
The listing indicates that the person in the role would be “innovat[ing] on behalf of customers within the payments and financial systems of one of the largest e-commerce companies in the world.”
Why Would This Matter?
The key promise of Bitcoin and other cryptocurrency standards is that they can function as a digital currency that is unrelated to any central bank or government. It’s the main piece of technology that could enable decentralized finance, a kind of financial system that would use technology instead of banks to keep money flowing.
However, it’s difficult to see the modern version of Bitcoin being anything other than a digital investment. After all, there’s nothing to spend the coins on! If you want to use your Bitcoin to pay for something, you probably need to sell it for “normal” currency beforehand.
Amazon, however, could change that dramatically. Amazon carries pretty much every type of item you could imagine, even food and medicine. As such, if Amazon is actually thinking about pivoting to accept Bitcoin as payment, it would be one o the most important pieces of support the coin has ever gotten.
Elon Musk Gets Back in the Fray
“If Amazon were to move into bitcoin it would be the most significant adoption to date,” Charles Hayter, founder of CryptoCompare, tells Yahoo Finance. “These rumors do tend to catch the market’s hopefulness but often there is no smoke without fire and If I was Amazon, I would be looking at accepting digital currencies.
“Naturally, the biggest hurdle for Amazon will be KYC [know your customer regulation] & AML [anti-money laundering], as well as FX gains/losses.”
Another key piece of support for Bitcoin was seen over the weekend when Elon Musk, Tesla’s CEO, once again boosted the coin last week by suggesting his company could begin accepting it as payment again. While this drew some cheers, others on Bitcoin enthusiast boards suggested that putting too much faith in Musk was a mistake. After all, his company did stop taking Bitcoin payments shortly after activating them last time.
Experts Say to Expect a Surge
As Bitcoin surges past $35,000 on its way back to $40,000, experts say that there is little reason to expect resistance before that benchmark.
“For the first time in many weeks we are seeing bullish signs here and expect Bitcoin to head toward the upper end of the $30,000 to $40,000 range,” Delta Exchange’s CEO, Pankaj Balani, tells Bloomberg via email.
“Bitcoin should face little resistance between $35,000 and $40,000 levels.”
This has been a dramatic reversal of a price nosedive that saw some predicting that Bitcoin might even dip under $25,000 before the end of the year. However, repeated boosts like those from Musk and Amazon can do wonders for the investor-driven price of Bitcoin. Since the standard is completely dependent on the feelings of investors in order to hold its value, it’s not surprising that it can move so quickly.
Enthusiasts on social media like Reddit insist that Bitcoin is the future of money. With companies like Amazon backing it, it’s hard to disagree with them. Then again, this isn’t the first time a major company has begun accepting Bitcoin, so a grain of salt could be helpful for new investors looking to break into crypto. As with any stock, it could always come back down to earth.