The revelation that Jeff Bezos and Amazon are secretly creating a cryptocurrency to rival the industry giant Bitcoin (BTC) has caused a stir among investors, affecting the price on major crypto exchange platforms like Binance and Hubi.
Bitcoins’ price collapsed in recent weeks, resulting in many traders switching their funds into altcoins like Dogecoin and SafeMoon. As well as that, we’ve seen countries like India and Turkey moving to enforce nationwide bans on the use of cryptocurrencies, which has also affected the price of BTC.
It’s unsurprising that Jeff Bezos has been doing this behind the scenes, as he’s a man with a variety of fintech interests and more than enough money to try his hand at anything he chooses. The potential of blockchain technology is unmeasurable, with the Ethereum blockchain already infiltrating a variety of different sectors; including the gambling, video games, and finance industries.
The speculation surrounding Amazon’s new coin has increased a lot in recent weeks, but there hasn’t been any statement from the company and nothing is concrete at this stage.
How has the news affected the industry?
Over the weekend, we saw a 15% drop in the price of Bitcoin amid a number of regulatory concerns, coupled with issues regarding power shortages which has affected the mining output for the network.
Bitcoin surged to $63,000 last week, but now hovers around $55,000. The drop has sent shockwaves through the crypto industry, scaring many investors off and forcing traders to sell their assets, which has further affected the price.
The volatility of the price of Bitcoin is not news, the fact it’s slumped by almost $10,000 is however. Bitcoin is still growing at an astounding rate year-on-year, so investors won’t worry too much about the recent drop in price. If anything, right now Bitcoin will be viewed as a cheap purchase.
However, as always with cryptocurrency prices, we can never really be sure that the price will rise once again. However, Bitcoin has the backing of billionaires like Elon Musk, having invested some $1.5 billion earlier this year. He’s not alone either, major financial institutions like BNY Mellon and J.P. Morgan have also shown their hand when it comes to crypto and backed it with billions.
What would the Amazon cryptocurrency look like?
While it’s still mainly speculation, it’s likely the currency would function for Amazon customers as a means to pay for services and products. Jeff Bezos has proven that he is one of the most ambitious businessmen on the planet and we can only expect him to expand his empire and range of services.
As such, the concept of a cryptocurrency designed to work within the Amazon marketplace is a viable idea. The rumors come after Amazon began posting job adverts looking for employees to work within the ‘Digital and Emerging Payments (DEP)’ division.
The adverts go on to state that the company is in the process of creating a payment system allowing customers to “convert their cash into digital currency”. This kind of system would suit users making purchases from the Amazon marketplace or using the Prime Video service.
The move differs from what we saw from Elon Musk and his Tesla vehicles. As he has made it possible for customers to purchase products using cryptocurrency, except using existing coins like BTC and ETH.
The development of such a system would surely drastically affect the price of other coins trading on exchanges today. But, would it drastically affect the price of Bitcoin? Bitcoin has proven time and time again that it can manage the strain of external factors, even an Amazon-sized problem.
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