Binance CEO Changpeng Zhao says Amazon, under the auspices of Jeff Bezos, could trigger a Bitcoin bull run.
2018 has been a tough year for Bitcoin and its cryptocurrency brethren. A massive decline in prices, as well as market capitalization, has been an ongoing trend. It seemed that Bitcoin had reached a point of stability through the end of October and early November, but another bear run reared its ugly head. However, Changpeng Zhao, the CEO of Binance, the world’s largest cryptocurrency exchange, says that there is a person who can trigger a Bitcoin bull run – Amazon’s Jeff Bezos.
Binance CEO Looks to Amazon
In a recent tweet, CZ asked people what they thought could trigger another bull run. One person responded by saying CZ could do it by buying up all the bitcoins in circulation, thus sparking a buying frenzy.
What do you think will be the trigger for the next bull run?
(I get asked this question often, and honestly, I don't know the answer, other than keep building)
— CZ Binance (@cz_binance) December 8, 2018
CZ responded by saying that he would not be able to do that, but he did say that Jeff Bezos of Amazon could. A number of people then suggested that Bezos be brought onto the Binance board, but CZ shot down that idea, saying it would be easier to bring crypto to him by having Amazon accept virtual currencies as payment.
Will Amazon Accept Bitcoin?
It would be a massive understatement to say that if Amazon decided to accept cryptocurrencies, it would be a huge game changer. It would usher in a level of legitimacy that Bitcoin advocates have long dreamed of.
However, there are several reasons why Amazon will probably not be accepting Bitcoin or other cryptocurrencies any time soon. We do know that Amazon has bought up several domains that involve crypto, but such a move could have been done solely for a possible, not definite, move in the future.
One reason why Amazon is not going to take Bitcoin as payment in the near future is due to the volatility of the virtual currency. Amazon keeps a tight focus on their margins, and the fact that Bitcoin could drop by a third in just a week would wreak havoc on their bottom line. A key feature of Amazon’s success is willing to make the barest minimum of profit by lowering expenses through efficiency, which then crushes competitors over time. A volatile cryptocurrency does not work in such a system.
Another issue would be integrating cryptocurrency into Amazon’s current system. Contrary to what most people believe, adding an option to accept this disruptive new technology requires more than a few lines of code. It would be very expensive to get systems in place, and there’s no reason to go to such an expense at the current time.
However, all this does not mean that Amazon will stay away from cryptocurrencies forever. One way to combat the volatility would be to instantly convert crypto into fiat once a payment is made. As the Lightning Network and other scaling protocols come into play, the costs of such conversions would drop to almost nothing.
Speculation aside, it would be nice to see a Bitcoin bull run take place in the near future. Many permabulls that touted $15,000 or more by the end of 2018 have had to alter their predictions. Currently, BTC is trading for $3,431, a drop of 1.87 percent in the last 24 hours.
Do you think Amazon and Jeff Bezos will get involved in cryptocurrencies? Let us know in the comments below.
Images courtesy of Twitter/@cz_binance, Flickr/@Tony Webster, and Wikimedia Commons.