Is Amazon Preparing For A Bitcoin Future
There has been a lot of speculation as to whether or not Amazon has plans to integrate cryptocurrency into its accepted forms of payment. The internet was filled once again with rumors, after Amazon recently purchased several cryptocurrency related domain names.
Amazon’s legal department secured the following web addresses:
Amazon already owns amazonbitcoin.com, but that registration took place in 2013.
What is Amazon Planning?
There are several possible explanations for Amazon’s recent purchase of these crypto domains, here are the most interesting and most likely.
Amazon Wants to Build on the Ethereum Blockchain
These names could possibly suggest that Amazon is planning on experimenting with the Ethereum blockchain. Ethereum acts as a platform on which companies can build decentralized applications, known as Dapps.
Instead of having to build an entirely original blockchain for each new application, Ethereum enables the development of potentially thousands of different applications all on one platform. These applications can easily create their own cryptocurrency to be issued to investors or to be used within their app.
Amazon Wants to Issue Their Own Token
Ethereum is the leading platform for creating tokens. Tokens issued on the Ethereum blockchain adhere to the ERC20 Token Standard. ERC20 defines a common list of rules for all Ethereum tokens to follow. This allows developers to design projects that will be compatible with all ERC20 tokens rather than making changes every time a new token is released.
Mining Cryptocurrency in the Amazon Cloud
Cryptocurrency mining has proven to be an extremely lucrative business, however it requires a lot of energy and computing power. Perhaps Amazon has found a way to use its vast cloud infrastructure to mine cryptocurrency.
Amazon Wants To Sell Cryptocurrency
Another lucrative business that has spawned out of the recent crypto gold rush is exchange services. Online exchanges that allow customers to buy, sell and trade Bitcoin are becoming increasingly popular. Recent regulatory moves by the SEC and Chinese government have some investors nervous although this is a good sign that exchanges are moving into the mainstream.
Amazon has already dominated many industries like retail, cloud services, books and even groceries. Is it that far fetched to think they may want to sell cryptocurrency in the future? Imagine buying, storing, trading and transacting with Bitcoin all on the same site.
Amazon Wants to Accept Payment in Bitcoin
This seems like the most obvious explanation, however, Amazon Pay’s VP Patrick Gauthier told CNBC last month that “Amazon had no plans to accept cryptocurrency because there hasn’t been much demand yet, and Amazon may simply be protecting its brand name.”
Amazon is Protecting its Brand
This, while the least exciting, is probably the most accurate theory out of the bunch. It is common practice for large corporations to purchase domains, not to use, but to protect their brand. They are not fond of other companies sucking customers away from them while infringing on their trademark.
All of this remains pure speculation. No matter which theory turns out to be the truth, if any, Amazon is preparing for a world where cryptocurrency rises in popularity.