What are the difficulties with Amazon accepting Bitcoin payments？

[kxwhalexk]

This may be a rumor，But does not hinder our discussion.
Amazon may soon allow users to pay in cryptocurrencies like Bitcoin

The most important news today is Amazon’s focus on Bitcoin and other cryptocurrencies, and will accept Bitcoin payments at the end of the year.
Within a few hours of the news, the price of Bitcoin rose from 32,000 to 40,000.

So what difficulties will Amazon suffer from accepting Bitcoin?
1.btc must solve small retail transactions，it must also be a large number of small transactions.I don’t know which solution to use，Maybe the time node of accepting btc payment at the end of the year is to wait for Taproot to complete，maybe even plan to use the P2P trading model of centralized exchanges.

2.If Amazon wants to release its own cryptocurrency, it is likely to be suppressed by the United States. According to previous experience when Facebook planned to release libra, issuing its own cryptocurrency may be a restricted zone in the United States.（btw I feel the "richest man effect" continues）

3.Can U.S. regulators pass Amazon’s idea?They accepted Tesla's Bitcoin payment before.But, Amazon and Tesla are different. Tesla may have fewer customers and a single product. But Amazon’s customers are thousands of ordinary people.

Regardless of whether this goal can be achieved in the end, at least it is a good thing for the short-term or medium-term market.


The impact of this news on the market has the following points
1.When the news was just announced.It is now. This is a very clear good news, which directly increases the price of Bitcoin.

2.Will more companies accept Bitcoin payments in the future?

3.Companies really make Bitcoin payments a reality.

In short, such news is a good thing for Bitcoin.
So what do you think are the difficulties that need to be overcome in order for companies like Amazon to accept Bitcoin payments?

https://purse.io/shop
Although Amazon does not directly accept Bitcoin payments, it seems that you can purchase gift cards through Bitcoin.

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[jackg]

Yeah you've been able to buy gift cards with bitcoin for amazon for a while now.

Bitcoin is being scrutinised by governments more than physical currency atm so that is probably the biggest problem that amazon might face, I gave up buying something with btc a while ago because I like using it as it's fast, secure and fairly easy (compared to putting in card details) but then the payment provider wanted kyc...


The last bull run also had a lot of rumours of amazon accepting btc, which then turned out to be false-if implemented, I'd expect it to be released in a few years unless they've already got something working (which is probably quite unlikely).

[hatshepsut93]

The impact of this news on the market has the following points

This isn't news, it's an unverified and unreliable rumor.

So what difficulties will Amazon suffer from accepting Bitcoin?
1.btc must solve small retail transactions，it must also be a large number of small transactions.I don’t know which solution to use，Maybe the time node of accepting btc payment at the end of the year is to wait for Taproot to complete，maybe even plan to use the P2P trading model of centralized exchanges.

Taproot is not a scaling solution, the scaling solution is Lightning Network. Until it's considered officially released and ready to be used in production, adopting Bitcoin for small payments will fail, just like when Steam dropped Bitcoin support over problems with fees and transaction times, that caused inconvenience to their customers.

[7788bitcoin]

~
So what do you think are the difficulties that need to be overcome in order for companies like Amazon to accept Bitcoin payments?

There is no difficulties for Amazon to start accepting Bitcoin payments and there were rumors about them accepting Bitcoin a long time back when other online shops started accepting Bitcoin but nothing happened and so is the reason other sites that started in order to take care of that and purse.io was a major site everyone used for a long time to purchase goods from Amazon and till now there is no updates whether they will be accepting cryptocurrency but i wont be surprised if we see them coming out with their own cryptocurrency.

[maisao1991]

I think this is untrue news. I haven't seen this in major crypto articles, looks like someone used fake news to get BTC price up and sell at high price. about this i have thought a lot and that is my speculation.

[bitmover]

In short, such news is a good thing for Bitcoin.
So what do you think are the difficulties that need to be overcome in order for companies like Amazon to accept Bitcoin payments?

The two main difficulties I can see are:

- Legal problems: Governments will be trying to apply fines to all problems they find. As dealing with bitcoin is something new, there are many legislation gaps.
For example, image the problem with taxes Amazon will have to face when converting bitcoin to fiat. Bitcoin volatility is very high, it will have to pay taxes over the sell and over bitcoin valuation.

- Technology and security risks: They will deal with many different wallets, lots of micro payments and micro transactions. They will need cold and hot wallets. They cannot be hacked, as it would be terrible for their reputation, as a tech giant.

[BrewMaster]

the biggest problem Amazon (and any shop) faces is the question of customers. meaning if their customers are going to pay with bitcoin or not because just having the payment option is not enough, people have to use it and if they don't it would be like a wasted resource and it just adds extra costs which is not favorable specially for smaller shops.

otherwise the rest including integrating bitcoin, regulations, ... are all going to be easy.

[Slow death]

Within a few hours of the news, the price of Bitcoin rose from 32,000 to 40,000.

I was also shocked when I saw this big price increase and it's all caused by just one rumor, it's unbelievable that this cryptocurrencies market suffers from a big manipulation of this level, it means that rich companies like amazon can do whatever they want with the price of bitcoin, this market needs to have brakes we can't continue like this and it's bad, it's not possible that a rumor can make the market have a big price increase at this level, imagine if someone will disprove this news afterwards? what will the people who buy at this price of 38600$ look like? we can't go on like this

I think this is untrue news. I haven't seen this in major crypto articles, looks like someone used fake news to get BTC price up and sell at high price. about this i have thought a lot and that is my speculation.

I also agree, there are legal issues and due to things like these that a simple rumor causes the price to go up a lot I doubt amazon accepts bitcoin as a means of payment

[avikz]

From a business perspective, I can think off one major issue that Amazom will face if they start accepting bitcoin payments. It is the price fluctuations. Bitcoin is hyper active asset where the price fluctuates like nothing else. So it's a business risk for Amazon considering the daily volume of orders they usually receive.

To mitigate this, they may employ a third part service like Bitpay where they will prefer to get the settlement in cash while providing the convenience of bitcoin to their customers. No matter what happens, this news is driving the market like crazy!

[haidil]

prices go up, so how can we find out who is ready to increase prices, while Amazon itself is still in the planning stages? Is it just making news stories that can result in such a big price increase?

I didn't watch the early minutes rise, and missed the news on how Amazon announced the adoption of Bitcoin payments. However, I'm more and more curious as to why it took only a short time after the news, and then the whales pumped up prices. So behind the news, the popes took advantage of the situation?

[milani]

This may be a rumor，But does not hinder our discussion.
Amazon may soon allow users to pay in cryptocurrencies like Bitcoin

The most important news today is Amazon’s focus on Bitcoin and other cryptocurrencies, and will accept Bitcoin payments at the end of the year.
Within a few hours of the news, the price of Bitcoin rose from 32,000 to 40,000.

3.Can U.S. regulators pass Amazon’s idea?They accepted Tesla's Bitcoin payment before.But, Amazon and Tesla are different. Tesla may have fewer customers and a single product. But Amazon’s customers are thousands of ordinary people.

May be in the far future it will happen when Bitcoin will be more accepted in the bigger part of the world, and more legalised in lots of countries. What is Amazon? The trading platform. Big trading platform. Of course Tesla and Amazon they are different and the interest to these to objects from government is different, there are lots of nuances there in this point. But as a perspective of course it is possible and may happen when it will be really profitable for Amazon and regulators. But nowadays it looks more like a rumour. .

[Silberman]

This may be a rumor，But does not hinder our discussion.
Amazon may soon allow users to pay in cryptocurrencies like Bitcoin

The most important news today is Amazon’s focus on Bitcoin and other cryptocurrencies, and will accept Bitcoin payments at the end of the year.
Within a few hours of the news, the price of Bitcoin rose from 32,000 to 40,000.

So what difficulties will Amazon suffer from accepting Bitcoin?
1.btc must solve small retail transactions，it must also be a large number of small transactions.I don’t know which solution to use，Maybe the time node of accepting btc payment at the end of the year is to wait for Taproot to complete，maybe even plan to use the P2P trading model of centralized exchanges.

2.If Amazon wants to release its own cryptocurrency, it is likely to be suppressed by the United States. According to previous experience when Facebook planned to release libra, issuing its own cryptocurrency may be a restricted zone in the United States.（btw I feel the "richest man effect" continues）

3.Can U.S. regulators pass Amazon’s idea?They accepted Tesla's Bitcoin payment before.But, Amazon and Tesla are different. Tesla may have fewer customers and a single product. But Amazon’s customers are thousands of ordinary people.

So this is why the price is going up so rapidly, I knew there had to be a fundamental reason for this to happen, anyway if Amazon wants to accept payments in bitcoin they will have to use the lightning network as this is not the same as Tesla which is charging you a lot of money for their cars while in this case poeple are buying cheap stuff and they need low fees, also since Amazon saw what happened to Facebook I do not think they are going to make the same mistakes and will just accept bitcoin and finally I think the US regulators may allow it as long as you go through KYC to buy stuff in Amazon.

[DarkDays]

Yeah you've been able to buy gift cards with bitcoin for amazon for a while now.

Yes, BTC can be spent online for gift cards but paying with crypto straight off is not as easy as it may sound.

This is because of all the regulations governments want to introduce some of which are still unclear. Until that gets untangled I do not see Amazon accepting crypto payments right off the bat. There will be a lot of planning, and resources needed to put the infrastructure and legislation in place for it and it all feels too early for it to happen now.

[boyptc]

Well, the fun stopped.

--> https://www.reuters.com/article/amazon-cryptocurrency/amazon-denies-report-of-accepting-bitcoin-as-payment-idUSL4N2P23OT

[OgNasty]

Well, the fun stopped.

--> https://www.reuters.com/article/amazon-cryptocurrency/amazon-denies-report-of-accepting-bitcoin-as-payment-idUSL4N2P23OT

Well, they can deny that all they want but they're hiring a blockchain expert so...

If they aren't planning to accept Bitcoin as payment, I would assume that means they are planning to add Bitcoin to their balance sheet.  Given Jeff Bezos' feud with Elon Musk, he probably views Bitcoin as a potential separator of their wealth.  For competition's sake, Jeff Bezos will have to take a stake equal or greater than Tesla's to ensure that his net worth doesn't get left behind Elon's in the event BTC makes a run into the triple digits and beyond.  I suspect other car makers will also have to follow suit to ensure they remain competition. 

As far as the difficulties with accepting payments...  At this point it's pretty straight forward.  They can build a payment system or use someone like Coinbase to be an intermediary, but I suspect fees and the blocksize limit remain obstacles likely too great for Amazon to overcome in order to accept payments.  Maybe if the Lightning network takes off they would consider using that, but I don't think it is popular enough to make an impact to their business.  That's why I believe we'll see them first add Bitcoin to their balance sheet (maybe 1.5-2.5 billion dollars worth) and then see how feasible it is for them to accept it.  This is the point in the game where Lightning needs to step up and prove it's ready for primetime or else we will start to see a push to make changes to the blocksize limit that will make Roger Ver's efforts look incredibly reasonable in comparison.

[nurilham]

Well, the fun stopped.
https://www.reuters.com/article/amazon-cryptocurrency/amazon-denies-report-of-accepting-bitcoin-as-payment-idUSL4N2P23OT

I read the news but I think the spokesperson doesn't say if no chance for crypto to be adopted in Amazon. He just clarifies that for now, there is still no specific plan for it. So, it is not true if the fun is stopped directly as you said. However, this news probably brings impacts to Bitcoin price or crypto market as a whole. There will be a bit of decrease in almost all crypto today, I guess.

Read again

[boyptc]

~snip~

I agree that they don't want to spoil what their plan really is. Well, what cityam did was probably a leak from any of their staff.

As the fun stopped I've said, it's about the market which reacted quickly that which is already $40k then it drops to $37k so fast.

I read the news but I think the spokesperson doesn't say if no chance for crypto to be adopted in Amazon. He just clarifies that for now, there is still no specific plan for it. So, it is not true if the fun is stopped directly as you said. However, this news probably brings impacts to Bitcoin price or crypto market as a whole. There will be a bit of decrease in almost all crypto today, I guess.

Things can change so fast with their denial and they just don't want to expose what they're planning with in the future. But those hirings that they've posted, it's not hidden.

[kxwhalexk]

Now the price of Bitcoin has fallen back to 37,000, just because Amazon explained that the news was untrue.

The two main difficulties I can see are:

- Legal problems: Governments will be trying to apply fines to all problems they find. As dealing with bitcoin is something new, there are many legislation gaps.
For example, image the problem with taxes Amazon will have to face when converting bitcoin to fiat. Bitcoin volatility is very high, it will have to pay taxes over the sell and over bitcoin valuation.

- Technology and security risks: They will deal with many different wallets, lots of micro payments and micro transactions. They will need cold and hot wallets. They cannot be hacked, as it would be terrible for their reputation, as a tech giant.

Yes, there are various issues that need to be discussed, both in terms of law and technology. Amazon's acceptance of Bitcoin is a national event, and Bitcoin still has many problems to overcome.

Yeah you've been able to buy gift cards with bitcoin for amazon for a while now.

Bitcoin is being scrutinised by governments more than physical currency atm so that is probably the biggest problem that amazon might face, I gave up buying something with btc a while ago because I like using it as it's fast, secure and fairly easy (compared to putting in card details) but then the payment provider wanted kyc...


The last bull run also had a lot of rumours of amazon accepting btc, which then turned out to be false-if implemented, I'd expect it to be released in a few years unless they've already got something working (which is probably quite unlikely).

Yes, although Bitcoin can buy gift cards, and there is a little discount. But I believe many people will not pay with Bitcoin，There is a paradox. Bitcoin holders are mostly speculators. Those who buy bitcoin believe that bitcoin will appreciate, and these people generally don’t use these bitcoins to buy daily necessities.

[Wendy Simth]

From an accounting point of view, my first reaction is how to verify the converted price in the future, because the price of Bitcoin changes all the time.
There are also expensive handling fees. Will the handling fees be more expensive than the price of the goods？This will affect sales.

[kxwhalexk]

From an accounting point of view, my first reaction is how to verify the converted price in the future, because the price of Bitcoin changes all the time.
There are also expensive handling fees. Will the handling fees be more expensive than the price of the goods？This will affect sales.

I think it should be priced in U.S. dollars, and the bitcoin price of this product will fluctuate at any time. This is just using Bitcoin as a means of payment. The opposite scheme is to use Bitcoin for pricing, and each commodity has a fixed Bitcoin price, but this may not pass the U.S. regulatory agency.