This week, crypto markets went on a rallying spree based on a rumor that Amazon would soon accept crypto-based payments. However, it all came crashing down when Amazon called out the claims as false on Monday. The eCommerce giant stated that the market’s speculation about the company’s crypto plan is untrue. Nevertheless, the mere speculation was powerful enough to move billions in crypto market worth.
The fiasco started last Thursday when the Seattle-based company added a job listing on its careers section. It stated that they were seeking a blockchain expert who was proficient in the workings of cryptocurrencies.
They’re looking for a payments team product lead to work on a crypto plan. Just the news of the job opening was enough to spark a surge in Bitcoin prices and those of other cryptocurrencies. Even after Amazon denied the claims as false, the prices didn’t fall back down. Since Friday, Bitcoin saw gains of about 25 percent, when Insider reported on the opening.
You’re probably wondering why the market faced such significant price swings after one job post. After all, Amazon isn’t the first eCommerce company to be accepting digital currencies. Also, hiring one professional from among 1.27 million employees doesn’t indicate any major commitment.
Even so, the world’s biggest retailer looking to explore digital currencies has major implications for the shadowy market. Considering that Amazon is increasing interest, it could be a signal of an eventual adoption of cryptocurrencies at a major scale. They could slowly go from being fringe investments to daily financial tools like credit cards and cash.
Ultimately, the purpose of cryptocurrencies is to be hashed. At the moment, they’re gaining acceptance among investors as an asset. Similarly, investor groups are positioning them as alternatives to precious metals, like gold, or other financial vehicles, like stocks.
Millions of investment-savvy Americans are delving into cryptocurrencies. Millions own some sort of crypto, of which a majority is Bitcoin. Of course, while owning them is a lucrative investment, using them in everyday transactions sounds like a gimmick. Only a mere 3 percent of consumers reported that they used Bitcoin to make a payment online in 2020. Two years earlier, the number of consumers was about 2 percent, according to Forrester Research.
Nevertheless, the crypto landscape could undergo a major overhaul of Amazon ends up accepting digital currencies for payments. Years ago, it set the standard for two-day shipping. Now, they can set the trend for other eCommerce companies to start accepting crypto payments as well. Will Amazon do it? Currently, crypto holders own over $1.55 trillion in digital currencies, of which most can be used to pay for products. This indicates a major market that Amazon can potentially tap into.