ValueWalk.com reporter Maj Soueidan suggests Amazon could be “gearing up for cryptocurrency exchanges” following reports the company has registered names related to cryptocurrencies. The domains include amazonethereum.com, amazoncryptocurrency.com, amazoncryptocurrencies.com.
Soueidan’s points “When I took one look at these domain names, that is how they read to me. What would be the point of going out in registering a domain name like these if you were simply going to use one of the digital currencies on the website as a method of payment? A domain name is a placeholder for a bigger project than that and, the thought of Amazon exchanges was literally the first thing that popped into my mind when I saw the domain names. I literally said out loud ‘they’re going to set up exchanges’. ”
“the notion of being able to take a fee off of every transaction in the future is, I believe, a promising runway for new revenue growth. In addition, the managing of exchanges is would be an extremely synergistic enterprise for Amazon as not only do they already have the massive computing power necessary to run their own exchanges and potentially mine for cryptocurrency themselves, but they are already one of the world’s largest marketplaces and the addition of cryptocurrencies to their arsenal would likely be a self-fulfilling prophecy that helps bolster the value of the cryptos that they would be transacting in. Using all of their resources to run a cryptocurrency exchange could be one of the best new runways for revenue growth that Amazon could possibly enter into at this stage in the game.”
The article concludes with the ValueWalk.com reporter also speculating on the potential for AMZN to acquire Coinbase, eventually competing with Overstock.com, while potentially allocating resources to mining cryptocurrencies, all resulting in increased “credibility of digital currency” space. I personally feel acquiring Coinbase is gonna be a big deal as we saw in the recent past that Coinbase is quite serious and is expanding on its own.
CNBC reported the domain registrations in November, following up on an original report from trade publication, DomainNameWire, prompting immediate speculation across social and online publications, that Amazon was preparing to accept crypto payments on it’s platform.
Still, The number of companies which are planning to use the blockchain technology is increasing each and every day. As newer applications based on blockchain technology are built, even more, number of businesses are being attracted towards the technology. In such a case, AWS would be hard pressed to stay away from the blockchain technology for a long period of time. It also runs the risk of missing the bus when it comes to blockchain. As long as, they are able to keep a watch on it, they would be able to jump on the bandwagon just in time.