170924 Were Amazon to Accept Bitcoin

Were Amazon to accept Bitcoin several things would have to happen first.  Right now, Bitcoin is just too volatile.  It has ranged in price over the last two weeks from $4950 to $3000.  If Bitcoin were a payment option people would have to know what the exchange rate for Bitcoin was without looking it up, otherwise, people would be doing the conversions manually and the site would be slow and stupid.  If it were my company, before I put Bitcoin on the sales page as a currency option I would want Bitcoin’s market value to stabilize.  Otherwise, you run the risk of people paying you when Bitcoin is high in value.  People would wait until the value took a huge bump upwards, purchase at your site, and then watch as the value fell back to normal levels.  A currency that fluctuates by 3-5% is huge for a currency fluctuation.  Bitcoin has been fluctuating by 10-30% recently.

If you assume the profit margin at a website is 20% this will give you some idea of what would be involved.   If some portion of those profits were going to be lost to Bitcoin fluctuation in return for receiving Bitcoin at all, how much would you allow.  Remember, receiving Bitcoin is already 2.35% more profitable to merchants than Charge cards because there are no banks, or fees involved.  Paying in Bitcoin, for the merchant and the customer, is akin to paying cash.


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