Litecoin (LTC)– Amazon, the internet commerce giant and everything store , has long bot thought of spil the keystone for cryptocurrency adoption. Not only is Amazon te the best position to embark accepting cryptocurrency (a fully digital podium with no brick-and-mortar ties), but the company has demonstrated foresight on technology with the advent of kindle, ebooks and certain innovations like same-day shipping.
Amazon has shown a predilection for adopting and promoting fresh technology te the past. The question now becomes which currency will they use? Last year, wij outlined the ways which Ripple XRP wasgoed a contender for Amazon’s crypto payment service. Here is a look at how Litecoin also holds a strong position for Amazon adoption.
Whenever wij talk about Litecoin adoption, it’s always within the setting of Bitcoin. The two currencies are entwined beyond price movement : Litecoin is a fork of Bitcoin and functions ter a very similar manner. Therefore, the greatest hurdle to Litecoin being used by a company like Amazon is simply overcoming the allure of using Bitcoin. Wij have pointed out before that Bitcoin benefits substantially overheen the surplus of the market te two ways:
- Very first to market status. Bitcoin is almost mythical ter the sphere of cryptocurrency at this point, given that it wasgoed the very first true cryptocurrency to kick off the industry, te addition to being the most invested coin (te terms of market capitalization). There are problems with Bitcoin, scalability being the most pressing concern. However, for all the shortcomings BTC has spil a currency overheen similar options, it has the advantage of being an early-mover on the market, which is difficult to overcome.
- Bitcoin is stylish. Ter an earlier article, wij listed the reasons a global company like Starbucks (25,000+ stores te 75 countries) would be more likely to take a chance on Ripple overheen other cryptocurrencies. However, Bitcoin still poses the most competition ter that it’s stylish, it has household-name recognition and is an instant headline grabber. At this point, if Amazon were to add Bitcoin, no one would bat an eye overheen the reasons for the commerce giant to wade into cryptocurrency. That grows murkier spil wij commence talking about other currencies, with the industry still being niche. Point being: Bitcoin is mainstream and widely known, other currencies take more research.
That can, and likely will, switch te 2018 and beyond. With every investor that comes to cryptocurrency, they not only take an rente te the price value, but the future of the currency. Developers, technologists, entrepreneurs and forward-thinkers will embark looking to cryptocurrency for more than ICOs and get-rich-quick schemes (or so wij hope), and start building and promoting uses for coins that are predominant the market. The emphasis shifts from price speculation and profit taking, to the intrinsic utility of the actual technology. It would be interesting to see how most ter the cryptosphere and general public compare Bitcoin to Litecoin and other currencies. Wij would be willing to bet the vast majority have no idea that the same deficiencies te Bitcoin are strengths te other currencies. Scalability will proceed to be the black crevice for the industry, but Litecoin offers a remedy for high transaction fees and long confirmation times. At this point, there is a growing sensation ter the industry that Litecoin overtaking BTC ter terms of market dominance is less a question of how, but when.
Litecoin is a usable form of crypto money. Bitcoin may have the brand name, the market recognition and media attention, but Litecoin has the utility. At this point, Bitcoin is better off positioning itself spil a currency for asset appreciation (such spil precious metals, real estate, etc.) than a true currency. For any currency to be accepted spil money, it requires a widely agreed upon value and simplistic means for exchange. Cryptocurrency, te general, suffers from the former.
Price volatility aside, it’s hard to judge where the acceptability of crypto spil a payment lies. Just because Litecoin is worth X amount on Y exchange, it’s still not a ubiquitous form of payment. However, Litecoin has the potential to fulfill the 2nd tenent: a simplistic means for exchange. Wallet addresses and QR codes may be an unwieldy means for transaction, but the usability of Litecoin puts it te the conversation for money to be used on a toneelpodium like Amazon. Looking at other Amazon-related innovations, it’s clear Jeff Bezos’ company values plainness and enhanced customer practice before adopting any technology. Amazon Prime is not just a way for the internet commerce giant to make millions through subscriptions–it provides xxx ventilatoren of Amazon amazingly prompt delivery and a host of online content options. Amazon Crypto , spearheaded by Litecoin payments, would have to suggest the same user enrichment for real adoption to occur. This would require simplifying the tangled wallet address system for sending crypto (albeit QR codes provide an alternative), and a confirmation of order that precedes actual confirmation on the blockchain. There has to be some assurance that when your grandma goes on Amazon to order a Kindle book, she’s not accidentally sending LTC into the ether.
Technically, with the advent of LitePay this month, customers will be able to use Litecoin for payment on Amazon spil they would any traditional debit card. But we’re imagining a step further. Wij are picturing a script where Amazon adopts Litecoin for payment without the intermediary step of fiat. This would require sending LTC directly to an Amazon wallet for purchase. From there, Amazon could store the crypto, use spil payment for distributors and employees, or spil payouts for MTurk and Amazon Affiliate/Associate programs.
However, even without the intervening transfer to fiat, LitePay represents a substantial proof of concept te growing Litecoin adoption. Think of it this way: if more (smaller) merchants and commerce websites embark using LitePay for transactions, it will draw the rente of Amazon. A company spil large spil Amazon has a commitment to being the market leader. If enough rente builds ter cryptocurrency, particularly spil a feasible form of digital payment, it benefits the Amazon brand and spil a symbol for digital commerce to budge ahead of the market.
Price volatility is going to be one severe limitation to growing adoption. OverStock.com share prices have skyrocketed from accepting Bitcoin since 2014, but they have also benefited from massive price appreciation. Cryptocurrency prices may take a year or longer to recover to pre-January prices, and there is little evidence that volatility will not proceed for the foreseeable future. While Amazon can afford to take some losses, they can’t afford to lose 80% of their crypto-payment value te two months if the market tanks again. LitePay and similar crypto-to-fiat processors suggest a barrier of protection while still permitting Amazon to stir into the cryptocurrency spel. Even with the intermediate transaction to fiat, LitePay increases Litecoin value and greatly improves liquidity–thereby helping more capital flow through the market. There is a stranglehold on Litecoin, and all cryptocurrencies, from investors unwilling to spend or trade their coins due to FOMO and potential price appreciation. Anything, whether it’s LitePay or a ongezouten Amazon LTC wallet, that increases the incentive to spend Litecoin, will drastically improve the price and the overall health of the market.
Despite the bear market reaching its third month of price depression, cryptocurrency still seems a strong contender to have a future ter digital commerce and technology. Amazon will be exclusief of that future, and will likely be the signal fire for exponential adoption. It’s difficult to predict which currency(ies) Amazon will use for crypto payments, or if they will engineer their own coin altogether. However, usability will be paramount te their selection. Litecoin, Ripple and other coins that demonstrate seamless, cheap payments are going to be the very first contenders for selection. The next criteria becomes brand recognition. Spil much spil NANO offers ter the way of free and instant payments, it presently lacks the brand-name appeal for Amazon to kick off crypto payments with. That’s where Litecoin demonstrates its greatest strength. It’s a well known currency with a long history te the market. Founder Charlie Lee has bot an advocate and figure te the crypto industry since almost its inception. It also has a growing user-base, with the volume of Litecoin-based transactions now extending to the top of the market. All of thesis features, combined with greater utility than Bitcoin and Ethereum, makes LTC a very viable candidate for Amazon to lead their future verhoging te crypto payments. If the market can recover and build up the same media attention spil it held ter December 2018, Amazon adoption could toebijten by the end of the year.