Will some companies like Amazon really 'store' Bitcoins?

[2double0]

I came through a post here
https://bitcointalk.org/index.php?topic=5351319.msg57557132#msg57557132

And it says that will Amazon adopt btc or not till specified date there.

A question struck my head.
Do such companies need it?
I am not against Amazon or any other big tech names, but as we understand it, Tesla and others have came in crypto to make profits by holding it. But companies like PayPal and Amazon settle millions of dollars on a daily basis sent to their vendors who sell products there successfully. If taken into consideration, then these companies accepting btc will be offering it to users just for their convenience but can't store btc for a long period of time, which means that much btc will be coming back to either exchanges or sold through OTC on a daily basis to settle their deals with vendors quick. Is such an adoption going to harm the overall value of bitcoins if sales will take place through big companies (not Tesla and all who are here for profit)?

[Kittygalore]

I think that the current relation regarding Amazon and crypto is still a rumor so I don't think that we will be seeing it coming to a fruition any time soon. Let's say hypothetical, they do accept crypto as payment in their platform, I think that they will have the infrastructure and manpower to store those coins, I mean it's not like storing it is a hidden or a high end technology.

[NeuroticFish]

Since they may only accept bitcoin and not invest into bitcoin, the most probable answer is that they won't hold/store bitcoin.
So they may only help users pay with bitcoin if they want to, but at the end of the day they may just receive fiat.

[paxmao]

In financial terms, bitcoin is just an alternative asset and is only interesting for companies that want to make bitcoin an investment vehicle. Other than that, these business will probably hold just a small quantity of bitcoin or other just as they hold a certain amount of cash to serve trading purposes. Financially, companies try to minimise the amount of cash they have and tend to buy short term debt to simply keep it for a while.

My take is that bitcoin is not going to get a preferential treatment, at least not immediately.

[BrewMaster]

i think bitcoin is too volatile and too risky for these companies to invest in and store. this is why so many of them go through payment processors such as bitpay to avoid owning any bitcoin for any amount of time since they receive the fiat through the processors conversion methods.

[jackg]

They'll probably find a way to pass the risk of saving/storing bitcoin onto investors. They'll probably use a payment gateway and prematch otc trades as much as possible so they can sell btc at a fixed amount for that period of time - like if investors were interested in dollar cost averaging.

Either that or they'll issue bonds to users of amazon that want to invest or hold btc and become an exchange themselces - finance is one of the remaining industries they haven't done much with/they could always team up with a bank on it too.

[lumeire]

They'll probably find a way to pass the risk of saving/storing bitcoin onto investors. They'll probably use a payment gateway and prematch otc trades as much as possible so they can sell btc at a fixed amount for that period of time - like if investors were interested in dollar cost averaging.

Either that or they'll issue bonds to users of amazon that want to invest or hold btc and become an exchange themselces - finance is one of the remaining industries they haven't done much with/they could always team up with a bank on it too.

For issuing bonds n all they would have to apply for another lisence or not?? It will be a completely different market segment and I guess that would pose certain risks as well.
Amazon would certainly hold Bitcoins if there is an advantage of holding Bitcoins to them, if not then they would sell the coins either with some profit or just keep holding Bitcoins till they are in profit and then sell the coins. But the thing is that they would have to start accepting Bitcoins first before all other things.

[jackg]

For issuing bonds n all they would have to apply for another lisence or not?? It will be a completely different market segment and I guess that would pose certain risks as well.
Amazon would certainly hold Bitcoins if there is an advantage of holding Bitcoins to them, if not then they would sell the coins either with some profit or just keep holding Bitcoins till they are in profit and then sell the coins. But the thing is that they would have to start accepting Bitcoins first before all other things.

Hypothetically, yes they'd have to apply for a new licence. Realistically, they'd probably acquire a company already trying to do something similar and just use that for doing the crypto exchanges.

Licencing and risk are generally easy for a large company like them to deal with, a licence is probably a week with 20 workers filing relevant information with the sec or whoever - even if it's internationally they'd probably only need a few extra people per country to deal with translations.

They might be able to make additional money by charging custody charges or lending out funds (like the majority of normal exchanges/asset management firms do).

[ziennakarishma21]

now your question is also my question , amazon accept BTC currently not seen officially on amazon in payment category , and they store BTC like a whale and can wait for the price to go up and sell it.

[noorman0]

Do such companies need it?

Yes, maybe they need it to reach wider customers including residents of countries where fiat is not supported by digital payment services.

Is such an adoption going to harm the overall value of bitcoins if sales will take place through big companies (not Tesla and all who are here for profit)?

As you said, the point is for profit. However they will seriously think about the circulation of bitcoins received in order to maintain their value in fiat. After all, amazon vendors also have the option of whether they will trade immediately or hold it.

now your question is also my question , amazon accept BTC currently not seen officially on amazon in payment category , and they store BTC like a whale and can wait for the price to go up and sell it.

What are you talking about? Amazon hasn't even announced accepting bitcoins

[maju69]

Because this news is still only considered as something that can't be said 100% and is certainly confusing, so we need proof of what Amazon will do. Considering where their planned adoption is still in the planning stages, and what we need to pay attention to is where the adoption that has not been carried out by Amazon has already caught the attention of many investors.

Well, what I'm worried about is that Amazon will only use it to attract more visitors because under the pretext that they will adopt Bitcoin, then crypto users, especially Bitcoin users, have already flocked to shopping on Amazon.
Only armed with Amazon's support for payments that will later use Bitcoin, they do not necessarily keep their promises.
So, in my opinion, before Amazon proved their statement some time ago, I think Bitcoin users should not be too influenced. So that all the truth is proven at the end of the year, as Amazon says.

[Coyster]

Well, what I'm worried about is that Amazon will only use it to attract more visitors because under the pretext that they will adopt Bitcoin, then crypto users, especially Bitcoin users, have already flocked to shopping on Amazon.

I second that thought, but the thing you must understand is that no company will adopt Bitcoin without having something to benefit from it in the long run, what's most important for users in the network is if the Bitcoin network will likewise benefit from such adoption, more importantly in terms of mainstream/worldwide growth.

Amazon will prolly not hodl Bitcoin whenever they finalize their decision on whether to adopt Bitcoin or not, but the thing is, it'll be good for the network if their actions will bring Bitcoin to the ears of more people and if it'll as well encourage more people to use Bitcoin as a currency by spending their funds buying something via Amazon, I think there must be an advantage the network stands to gain.

[hatshepsut93]

As expected, that rumor proved to be fake.

But as a thought experiment, I think almost all large company will use some proxy service to handle crypto transactions for them and instantly convert bitcoins to fiat, because they have zero reasons to be exposed to Bitcoin's volatility. This has been a deal in the past when Steam accepted Bitcoin via Bitpay.

[Kakmakr]

I think a lot of these big companies are just "following" the Money..... they are tapping into a new income source..because they know that there a millions of bitcoins being hoarded by people that are not really using it for anything else..other than gambling and the odd transaction to buy food and drinks. 

They will in all probability use a Payment Processor and then instruct the payment processor to convert payment back into Fiat currencies, before it goes out onto their platform. (Payment processors will "legitimize" transactions, because they strip anonymity for all users that use their platform) 

[Fortify]

I came through a post here
https://bitcointalk.org/index.php?topic=5351319.msg57557132#msg57557132

And it says that will Amazon adopt btc or not till specified date there.

A question struck my head.
Do such companies need it?
I am not against Amazon or any other big tech names, but as we understand it, Tesla and others have came in crypto to make profits by holding it. But companies like PayPal and Amazon settle millions of dollars on a daily basis sent to their vendors who sell products there successfully. If taken into consideration, then these companies accepting btc will be offering it to users just for their convenience but can't store btc for a long period of time, which means that much btc will be coming back to either exchanges or sold through OTC on a daily basis to settle their deals with vendors quick. Is such an adoption going to harm the overall value of bitcoins if sales will take place through big companies (not Tesla and all who are here for profit)?

While they have since denied that they will be getting involved in Bitcoin (maybe they have their sights on a different cryptocurrency?) it seems that the blockchain itself could serve very many useful purposes for a gigantic logistics and warehousing operation. If they were to follow the Paypal model it is actually a rather cunning way to profit and control a large amount of cryptocurrency which is all funded by your customers. They get to fix the conversion rate back into fiat and they can also set transaction fees. On top of that they can potentially eliminate paying card network provides like Visa or American Express, which could further boost their margins.

[lablab03]

I saw some news about amazon that they denied the report of accepting bitcoin reason why bitcoin suddenly changed direction after making progress, but TBH it's possible that someday they will adopt crypto especially BITCOIN but not now probably maybe soon after 2 years IMO. Because as the matter of fact base on what i know  they have plans as well to develop their own digital currency, so that means they're really interested with this kind of currency? I hope so coz once this big companies adopt bitcoin for sure there will be a good improvement in the market.

[Renampun]

...

every company must invest to secure their profit...

Bitcoin is an investment that has a very good increase in value every year. tesla, microstrategy and tech companies that have invested in Bitcoin first are already making profits. big companies certainly really have to invest in Bitcoin.

[teosanru]

I came through a post here
https://bitcointalk.org/index.php?topic=5351319.msg57557132#msg57557132

And it says that will Amazon adopt btc or not till specified date there.

A question struck my head.
Do such companies need it?
I am not against Amazon or any other big tech names, but as we understand it, Tesla and others have came in crypto to make profits by holding it. But companies like PayPal and Amazon settle millions of dollars on a daily basis sent to their vendors who sell products there successfully. If taken into consideration, then these companies accepting btc will be offering it to users just for their convenience but can't store btc for a long period of time, which means that much btc will be coming back to either exchanges or sold through OTC on a daily basis to settle their deals with vendors quick. Is such an adoption going to harm the overall value of bitcoins if sales will take place through big companies (not Tesla and all who are here for profit)?

I don't think these companies will store a lof of btc even after they start accepting it as a payment method. Reason is simple they won't be willing to take this big of a currency exchange risk on their balance sheets. Companies avoid keeping foreign exchanges as they are prone to fluctuations, btc is at a all high level when it comes to volatility so these companies will definitely hedge themselves against this risk. Especially listed entities it's not easy to keep the primary revenues into such a risky asset.

[shield132]

Since they may only accept bitcoin and not invest into bitcoin, the most probable answer is that they won't hold/store bitcoin.
So they may only help users pay with bitcoin if they want to, but at the end of the day they may just receive fiat.

Amazon runs Amazon Pay at the same time that is the competitor of PayPal, Google Pay and other companies. Paypal move on another step when they accepted the crypto adoption, so, in order to be in competition and also be the valued competitor, you have to implement everything good what your opponents have already done.

If they just accept the bitcoin payments, then in case of refund, what will they do? Return the original amount that god knows what value will have or they'll have to return the USD equivalent in BTC. It's really hard to predict that will be their move, especially when everyone knows the taste of market manipulation that Elon Musk has done.

[just_Alice]

I think you’ve already answered your question yourself. Just like you said, unlike Tesla, Amazon is not interested in Bitcoin for profit, but values the convenience of the customers.

Thus, the company will most likely not be acquiring Bitcoin (and, even more so, holding), but rather just adding it as a payment option and then, most likely, exchanging for better stability assurance.

I don’t see how this system can harm Bitcoin, only the opposite.