Tag Archives: Buying Bitcoin

Why Amazon Accepting Bitcoin Would Be A Game Changer (And Why They Might NOT Do It)

Jeff Bezos Directs Amazon to Accept Bitcoin and Other Popular  Cryptocurrencies: Report – Bitcoin News

In all the years I’ve been browsing the internet, I’ve never seen something so divisive or so disruptive as cryptocurrencies. Yes, that includes both video games and internet porn. Crypto’s impact has been that profound. That impact is likely to continue in unexpected ways for years to come.

However, there is still plenty of uncertainty and confusion surrounding cryptocurrencies. I recently had dinner with my parents and my mother asked me to explain it to her. I tried. I’m pretty sure I failed. I tried to simply frame it as digital money, but that didn’t even come close to explaining what cryptocurrency is, how it works, and why it has become such a huge industry.

There are far smarter people than me who can explain what cryptocurrencies are and how they work. This video here does a decent job of explaining it to beginners who aren’t particularly tech savvy.

While I’ve been following the rise, fall, revival, and growth of cryptocurrencies for years, I didn’t actually buy any until very recently. I even wrote about my experience, which ended up being somewhat mundane. It was no different than using an ATM.

That’s somewhat illustrative of where cryptocurrencies are right now. Buying currencies like Bitcoin has never been easier. You can download any number of wallets for free on your phone. If you don’t want to link your bank account to it, then finding an ATM like I did is very easy.

If you have any spare change lying around, you can turn it into Bitcoin. That’s where we’re at now with cryptocurrencies.

The harder part at the moment is actually spending Bitcoins. While you can find numerous online merchants who take Bitcoins, you can’t exactly use them to pay your bills, buy your groceries, or just purchase something on a whim. That’s one of the biggest barriers to cryptocurrencies in general. Using it is more cumbersome than regular cash. That’s why most see Bitcoin as an investment asset rather than a usable currency.

That could change very soon, however. The reason for that change could come from the largest retail entity on this planet, Amazon. If ever there was a company that could completely change the way we see and use cryptocurrencies, it’s this one. It may ultimately make Jeff Bezos even richer than he already is, but let’s table that concern for a moment.

This isn’t just me speculating. There was a recent rumor among the business world that Amazon was looking to start accepting Bitcoins as a payment method. While Amazon ultimately shot down that rumor, they did not say they would never accept Bitcoins.

In fact, I would go so far as to say it’s only a matter of time before Amazon starts accepting cryptocurrencies in some capacity. There’s just too much money to be made from doing so and Amazon, like all big businesses, is always looking to grow. This would be one way of doing that and it’s impossible to overstate the larger impact that would have.

For one, it would send shockwaves through all currency markets, crypto and otherwise, more so than a million tweets by Elon Musk. Suddenly, this asset isn’t just an investment vehicle anymore. It’s a form of money with an actual use.

Amazon is already the biggest retailer in the world. It’s also becoming one of the largest grocery chains. It still has some competition, mostly through companies like Walmart. None of them accept Bitcoin yet, but you can be reasonably certain that as soon as one of them takes that leap, the others will follow.

Beyond just being a novel payment method, Amazon accepting Bitcoins could have a far broader change. One of the main driving forces behind the development of cryptocurrencies is that this is money that has no boarders. It doesn’t matter where you are in this world. You could be in America, China, or the middle of Africa. So long as you have an internet connection, you can access this currency.

For companies like Amazon, that means accessing a customer base that has been traditionally inaccessible. There are over a billion people in this world who have no bank accounts. In some parts of the world, their currency just isn’t usable for companies like Amazon. Converting them to other currencies is already a hassle. Bitcoin could change that.

By accepting Bitcoin, Amazon and other retailers like it have the potential to the entire world in ways that weren’t possible until recently. If they’re going to keep growing, they need those customers and, like it or not, these people need Amazon. Opening more people up to an accessible market can only help get goods to people who need them.

All that being said, I can also understand why Amazon and other large retailers might resist accepting cryptocurrencies. Beyond them just being too loosely regulated, their volatile nature could be a problem for large retailers.

I can attest to that volatility personally. When I bought my first Bitcoins, the price was around $35,000. Then, it shot up to over $60,000 for a while. A few months later, it crashed to the point where it was worth less than my initial investment. It eventually recovered, but that’s a lot of instability for a currency.

That’s something I’m sure Amazon is aware of. By taking Bitcoins as payments, they’re also accepting its wild volatility. All those Bitcoins that paid for all those goods could be worth a thousand dollars one day and worth a fraction of that the next. Even if Bitcoin represents only a small portion of payment, that’s sure to create some anxiety among investors.

Given the current state of the economy and the world, as a whole, I understand why Amazon would hold off on diving into cryptocurrencies. For a large, publicly traded company, anything that makes the stock price or the overall value of its assets less certain might just be too much to handle for now.

It may not happen this year. It may not even happen next year. However, I’m not among those who think all cryptocurrencies are a scam, a scheme, or a fad. These aren’t Pokémon cards or Beanie Babies. This is a valuable tool for the digital world that has the potential to open up exchange with everyone, regardless of where they live.

That tool still needs refinements. Bitcoin certainly has its flaws. That’s beyond dispute. Amazon is aware of those flaws, as well. As they are refined, currencies like Bitcoin will gain more acceptance. Amazon and other big retailers will be part of that process. When that day finally comes, expect a whole new world to emerge. I don’t claim to know what kind of world that’ll be, but I’m excited to see how it unfolds.

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My Early Experiences With Bitcoin And Helpful Tips I’ve Uncovered

Recently, I finally took the plunge and bought some Bitcoin. I even wrote shared the experience. Overall, it wasn’t that groundbreaking. It didn’t involve a radical rethinking of how I used or thought about money. It was not that different from depositing money in a new account from an ATM. The account in this case just happened to be Bitcoin.

Since then, I’ve bought more Bitcoin. To date, I have a couple hundred bucks in my lone Bitcoin wallet. I’m still using BRD, which is one of the simplest wallets you can get. I have looked into getting others that have more features, but many of them seem to be more trouble than they’re worth.

That may change. I am quite interested in what BitPay has to offer with some of their services, but for now, I’m content to stick with BRD.

However, since I bought my Bitcoins, one issue has come up and I suspect it’s still the primary issue that most people face when they first get involved in this. It’s probably the same issue that prevents a lot of people from getting into it to begin with.

How do I spend my Bitcoins once I have them?

It’s the main issue that all these cryptocurrencies face. Getting them and securing them is challenging enough. Actually spending them like real money is still a challenge. While there are some noteworthy merchants that accept Bitcoin, most major retail outlets do not. You cannot use Bitcoin at Amazon or WalMart or even a standard grocery store just yet. Until that changes, its use will be limited.

This is what kept me from buying much of anything with my Bitcoins. Then, I discovered a useful tool that has helped make that easier and I think it’s worth sharing. While it’s true that companies like Amazon and Apple don’t accept Bitcoin directly, you can still use them. You just have to do it indirectly.

One way to do this is to use a site I found called Bitrefill. What it does is simple. You just use your Bitcoins to purchase digital gift cards for popular retail outlets. It works like this.

Step 1: Go to Bitrefill.com and browse the various gift card options, which includes the likes of Amazon and Walmart.

Step 2: Pick a gift card, choose an amount, and enter your Bitcoin account information for the desired amount, which is usually around $50 to $100.

Step 3: Complete the purchase and wait for the gift card code to come in via email. Then, just add the amount to your existing account.

For those who buy most of their stuff on Amazon, this is a quick way to turn your Bitcoins into something spendable. There are a few other workarounds, like Moon and Purse.io, but I’ve found this to be the easiest. There’s even a similar website called CoinsBee that allows you to do the same to your Apple iTunes account.

Basically, if you know how to send or spend gift cards, you can spend Bitcoin. Does it require a few extra steps from traditional cash? Yes, it does, but you can still spend it.

That may still raise the question as to why bother with Bitcoin in the first place. If it’s just adding an extra step between you and the retailers you prefer, then what’s the point? Well, this is where I’d like to share another part of my Bitcoin experience.

After buying my first batch, the price went up. I don’t know why, but it did. Suddenly, the first hundred bucks I put in was worth $125. That was great. It was downright thrilling. Granted, it did go down to around $103, but it was still impactful in a major way.

That’s because Bitcoin, unlike traditional money, fluctuates in value. Many see it as a reason why they don’t buy in. It’s just too volatile. I can understand that, but I also understand the impact of inflation.

If you go to your bank account right now and look at your money, you won’t see it change much in terms of value. However, inflation does ensure that its value goes down. It’s not a conspiracy. It’s just basic economics. Over time, most fiat currency loses value. That has been the trend for nearly a century.

With Bitcoin, it fluctuates. One day, it has more value. The other, it has less. You’ll win on some days, but lose with others. With regular cash, though, you always lose. You don’t lose nearly as much. Most of the time, it happens so slowly that you don’t even notice. Even so, losing is still losing.

The Bitcoins I have now may only be worth a few hundred bucks. By this time next year, they could be worth a lot more. That’s even more money I can convert to Amazon or WalMart gift cards. There’s also a chance the price could crash, as it has before, but given the finite nature of Bitcoin, there’s more incentive for its value to increase rather than decrease.

That doesn’t mean its value will always go up. There’s still a non-zero chance that Bitcoin’s value could stall or outright collapse, as other currencies have in the past. That’s why I’m not converting all my money into Bitcoin anytime soon.

For the time being, though, I’m satisfied and encouraged by my Bitcoin experience. I also encourage others to get into it as well, if only to get a feel for it. Hopefully, the sites I’ve listed here will help you get some use out of your Bitcoins. Money is a powerful force in this world. So long as Bitcoin and other cryptocurrencies keep operating as such, they’ll have a part in our future. Now is as good a time as any to carve your place in that future.

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Filed under Bitcoin, Jack Fisher's Insights, technology