Why Does OverStock.com Accept Bitcoin?
While Patrick M. Byrne, CEO of online retailer Overstock.com says he is “agnostic” regarding the future value of bitcoin, he believes bitcoin is a viable medium of exchange for Overstock.com to better serve their customers. Read Why …
When U.S. Accept Bitcoin It Creates a Robust, Viable Alternative Currency
Overstock is the first major online shopping retailer to commit to accepting the digital currency bitcoin as payment for any of millions of products. Doing this for both business and philosophical reasons, lets explore both reasons, as both are fascinating perspectives to add to the public opition of bitcoin.
Business Reasons To Accept Bitcoin
First, the business reasons: The increasingly large numbers of bitcoin holders are eager to patronize firms that will accept this form of payment, but so far, their options have been limited. By being the first major online retailer to accept bitcoin, Overstock will acquire a significant group of loyal consumers, resulting in over all growth of market share.
Accept Bitcoin For Lower Transaction Fees & More Profit
Another reason for merchants small and large, like Overstock, to choose to accept bitcoin for sales, is the cost of carrying out credit-card transactions. It is roughly 2 percent. This means more profit for bitcoin friendly businesses. In Overstock’s case, their net margin is approaching 2 percent, therefore the savings of such fees will make bitcoin sales that much more profitable.
If you are not into mining for bitcoins, try accepting it for payment of your products or services. Though you may need to buy your supplies with your currency for now, just as in the case with Overstock. While it’s true that the value of bitcoin has proven more volatile than that of gold, this will not be a risk to Overstock.com. They will immediately convert bitcoin to dollars which minimises their bitcoin risk of devaluing.
A Fascinating Philosophical Reason to Accept Bitcoin
Accept Bitcoin. Limit Government. A Better Business Model For Our Nation & Constitution Consistent
Byrne believes limited government is a better business model for our nation than is unlimited government. Limited government has the additional benefit of being consistent with our Constitution, he says. “Among the many vices of authoritarianism is that it can sustain itself only by offering more things to more people than it can actually deliver, and one way it makes up the difference is by debasing its currency.”
Government Can Not Create Gold At Will. More Reason To Accept Bitcoin
People who share the belief in limited government often favor gold-back money, because for millennia, mankind’s supply of gold has increased at a rate of 2-3 percent per year. Government has no power to print additional gold into existence, as is done with all fiat currency.
Bitcoin as a digital currency, works well for online transactions. However, it possesses key virtues of gold and silver. Bitcoin is mathematically limited in that there can be no more than 21 million (infinitely divisible) units. Bitcoin supply will grow in a predictable manner.
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