No matter how much the cryptocurrency sphere grows, there is still more and more room. However, it is quite hard to determine in what direction the growth will be. Will it be financial? or will it be something like charity or just a commodity?
Right now the direction that rumors have been taking us seems to be financial. And it is directed to one of the largest companies in the world, the owner of which is considered to be the richest man in the world (well, maybe not after the divorce). You guessed it! It’s Amazon (although it’s mentioned in the title).
Doesn’t Amazon refuse cryptocurrency?
Amazon has made it clear that they don’t accept payments with Bitcoin, Ethereum or any other cryptocurrency, but they may be more welcoming to their own coin. They have already bought a bunch of domains like amazonbitcoin.com and amazonethereum.com, and even had a connection to Blockchain projects last year.
Some traders say that Amazon can even consider a Bonus to loyal customers with their new coin, Similar to the popular XM Bonus. However, Amazon is no broker, and it is surely not a Financial Institution, therefore these types of rumors can be easily discarded.
The amount of people that said they would buy a cryptocurrency from Amazon is also not very high. The data was gathered by Investing.com which made a survey asking the question of what Amazon could implement that the customers would buy. Only 13% said that an Amazon crypto would be something they’d spend money on, but most just wanted a computer or just more coupons and bonuses. Needless to say, a computer and coupons could already be in development from the commerce giant, therefore a completely new Coin is not entirely out of the question for many, but there are other factors connected to why it is unrealistic.
Why AmazonCoin is irrelevant
In order for AmazonCoin to have at least some value, people need to be able to buy it with Fiat currency. Since most Blockchain startups offer their coins for Bitcoin or Ethereum it is more realistic for Amazon to do the same.
Look at it this way. Most people interested in cryptocurrencies already hold multiple cryptos in their portfolio. The sole reason why they want AmazonCoin is to liquidate their useless cryptos and try to at least use them somehow. AmazonCoin would be a perfect deal as they’d at least be able to buy something with cryptos. Therefore if Amazon offers the coin for Fiat currency, it is highly unlikely that many will be interested in buying it through those means. And since the sentiment towards Bitcoin and Ethereum payments is not changing from the e-commerce giant, AmazonCoin becomes more and more unrealistic.
Overall, despite all of the hype created by this 13% of the survey and even Binance’s CEO Changpeng Zhao tweeting that AmazonCoin is inevitable, I still believe that the cryptocurrency will not be realized.
Giorgi is a news reporter and financial analyst at www.forexnewsnow.com He has 3 years of experience in analyzing the financial markets of Forex and cryptocurrencies. He also likes making hidden jokes in his articles.