Large Corporations and Bitcoin

[BitCoinDream]

Can anyone please tell me why large corporations like Facebook or Google will accept Bitcoin in near future ? They can simply mine it... right ? They have enough money to stack racks of ASIC... is NOT it ?

[DeathAndTaxes]

Can anyone please tell me why large corporations like Facebook or Google will accept Bitcoin in near future ? They can simply mine it... right ? They have enough money to stack racks of ASIC... is NOT it ?

Margins on mining are low (possibly negative), you have absolutely no pricing power, brands are worthless (a hash is a hash regardless of who makes it), and your profitability is largely determined by what other people (not you) do.   Does that sound like a business model that Google would be interested in?

I would find it much more likely that a Google would attempt to buy a company like BitPay then get involved in mining.

[grifferz]

While bitcoin is niche, large businesses do not (on the whole) want bitcoin. Only bitcoin enthusiasts want bitcoin.

Businesses want customers. Announcing that they accept bitcoin will bring a small number of new customers. It will also bring a bit of publicity, which will show even to non-bitcoin users that the business forward-thinking and cool.

It's fairly simple to accept bitcoin payments and it's also fairly low-risk because it's going to be a tiny fraction of your sales. Even though Overstock says it is nearing on $1mil of sales in bitcoins, this is going to still be a tiny fraction of their sales.

So at the moment it is mostly marketing.

(That isn't a criticism)

I doubt mining is anywhere in their plans. It is a very bitcoin-enthusiast point of view to think about the mining side of things.

[Lohoris]

Margins on mining are low (possibly negative), you have absolutely no pricing power, brands are worthless (a hash is a hash regardless of who makes it), and your profitability is largely determined by what other people (not you) do. Does that sound like a business model that Google would be interested in?

I would find it much more likely that a Google would attempt to buy a company like BitPay then get involved in mining.

Very accurate and well-thought, I definitely agree.

Acquiring something like BitPay would make sense once they start believing Bitcoin can't be stopped: they would have a profitable company which could directly integrate in their services.

[tokeweed]

Can anyone please tell me why large corporations like Facebook or Google will accept Bitcoin in near future ? They can simply mine it... right ? They have enough money to stack racks of ASIC... is NOT it ?

Margins on mining are low (possibly negative), you have absolutely no pricing power, brands are worthless (a hash is a hash regardless of who makes it), and your profitability is largely determined by what other people (not you) do.   Does that sound like a business model that Google would be interested in?

I would find it much more likely that a Google would attempt to buy a company like BitPay then get involved in mining.

i would love to see this happen. just shows there's real interest in bitcoin. it will open up new opportunities for it.

[bitpop]

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[DoctorOz]

Because business is booming without BTC, why complicate one's life... especially since they think they are the guru's?

When at the top, make sure you keep your foot on those trying to climb.....

FYI - since when has any corporation changes the world.... it took Steve Jobs to make Apple, not the vice versa!