eBay looking to Bitcoin for Competitive Edge this Holiday Season
As commerce giants like Overstock see stock shares soar after accepting bitcoin payments, a handful of other firms are looking to the digital currency for a boost in sales this holiday season.
Appeasing an Eager Market
eBay Incorporated, a multinational electronic commerce company with its headquarters in San Jose, California, is thinking to accept Bitcoin in the indeterminate future. On December 12, Yahoo Finance reported on the internet company’s attempts to compete with Amazon this season. This report is based on speculation from eBay officials regarding cryptocurrency payment systems.
Scott Cutler, a senior vice president of eBay Americas, has entertained the idea that eBay could list bitcoin as a payment option soon. The online marketplace has already seen an upswing in Bitcoin mining equipment, bitcoin gift items, and collectibles this year.
In another interview with Forbes in November, Cutler outlined the way the current market is shifting based on the arrival of Millennials and Gen Z consumers. He stated that eBay is “Entering a new wave of commerce innovation driven by technology – in large part because of changing consumer tastes and demands.”
Case Studies and Challenges
Bitcoin is slowly but steadily gaining acceptance into mainstream marketplaces. In recent times, companies who have integrated cryptocurrencies into their operations have witnessed an enormous rise in stock prices.
For example, Overstock, the first online retailer to accept the digital currency, has seen an impressive rise in its share price in the last six months.
The point of sale software firm, Square, also began offering users the ability to buy and store bitcoin on the Square application. Shortly after this announcement in November, a Credit Suisse analyst predicted a $30 million increase in revenue for the payment systems company.
Still, a significant challenge faces bitcoin. As a payment method, users are again faced with high transaction fees that miners charge to send even small amounts of the currency. It has also caused problems for merchants like Steam who recently stopped offering bitcoin as a payment method.
This question has seen many already opting for cheaper payment methods like Litecoin or even Bitcoin Cash and use bitcoin as a store of value instead. It remains to be seen if the store of value would finally overcome its high transaction fee menace and become a real payment method, but many are eager to see it leap this hurdle. After all, Satoshi Nakamoto’s primary goal was to give the world a cheaper decentralized payment system.