Changpeng Zhao (CZ), the CEO of the big crypto exchange Binance, tweeted recently that he believes that the giant online retail, Amazon, could be the catalyst for the next Bitcoin bull run.
These thoughts of his came to light when he took to twitter, asking his followers what they think the trigger will be for the next bull run. His followers had a lot to say, one of which, Crypto Guy @Ankit4043, joked that CZ could lead a bull run simply by buying up loads of bitcoin.
CZ then replied stating he couldn’t, but he believes that Amazon’s CEO Jeff Bezos, could be the one that does it.
The bigger picture
I’m sure without a doubt, that his comment is correct. If Amazon does accept cryptocurrency as a form of payment on their site, we could indeed see another massive bull run.
The big question is will they? and what’s stopping Amazon from accepting crypto?
As of now, Amazon does not accept any sort of cryptocurrency and there are a few reasons behind that.
- Price Volatility – The price of bitcoin is more volatile than the price of many other government currencies accepted by Amazon, so there could be some challenge in pricing products.
- Regulation – The regulation scene in blockchain is a mess now and as a big and well known company, Amazon might not want to deal with that.
- Existing partnerships – It is possible that Amazon already has great deals in place with major credit card companies, such as VISA Inc. (NYSE: V), and other payment processors. Smaller online retailers don’t get such favorable conditions, which creates a competitive advantage for Amazon. Bitcoin, in an effort to grow, already allows small web shops to accept payments at low costs, which means Amazon couldn’t realize the same kind of advantage with bitcoin.
- Amazon’s own blockchain – Another theory is that Amazon would like to eventually roll out its own digital currency. If that were the case, Amazon does not want to lend credibility or open up its huge market to a future competitor. Amazon already launched Amazon Coins in 2013 for game, app and in-app purchases.
In April 2014, Amazon indicated that it would not accept bitcoin because “we’re not hearing from customers that it’s right for them.” Ostensibly, this means Amazon might accept bitcoin if it becomes more widely used.
In 2017 and 2018, Amazon again fueled speculation that it was about to accept bitcoin when it purchased several cryptocurrency-related domain names, and also when an Amazon subsidiary purchased a streaming data marketplace that cites bitcoin use as a case study in its patent.
In addition to all this, there’s a patent race going on right now in the blockchain space. Depending on who’s able to secure the most patents, we might be able to determine which big company will be the first to hop on board to trigger the next bull run.