Despite price fall, retail adoption of Bitcoin is growing.
This week, a top US-based electronics retailer “Newegg” expanded its Bitcoin integration to its platform in Canada meaning that millions of its Canada-base clients can now purchase its products with Bitcoin.
The CEO of Newegg, Danny Lee stated that as the value of Bitcoin has skyrocketed since 2014, its users now have significant buying power.
“In 2014 Newegg was among the first major companies to offer customers a bitcoin payment option. Since that time the value of bitcoin has skyrocketed and customers holding bitcoin have considerably more purchasing power. We believe the time is right to broaden our acceptance of bitcoin to our customers in Canada,” added Lee.
Cryptocurrency payments to Newegg are handed by BitPay and the CEO Stephen Pair added that as the demand for cryptocurrency support from users in Canada is at such a point that integrating Bitcoin more into the Newegg platform would further encourage its adoption and growth.
“We are seeing a lot of traction in Canada, and we are happy to see Newegg extend its bitcoin payment option north of the border,” said Plair.
Besides from Newegg, various other e-commerce retailers such as Overstock, Expedia, eGifter, Gyft, Dish, and CheapAir are all actively accepting Bitcoin as payment for their services.
Back in January, just before the market correction of Bitcoin, the chairman of Starbucks Howard Schultz indicated that the company would be ready to integrate crypto payment methods in the future as long as they are retailer friendly. He added that he would have to be convinced that they were able to facilitate the number of transactions required for large-scale, international businesses such as his. He added that he doesn’t believe that Bitcoin has the potential to become a global currency but that rather it could be used in the future as a currency, by retailers.
Bitcoin Foundation co-founder and Visa executive Jon Matonis previously emphasised that as big banks and names such as Goldman Sachs and Newegg continue to adopt and support the cryptocurrency, the popularity of the sector would continue to increase. At the moment, the volatility of the market makes it tough for retailers to fully adopt cryptocurrencies but as the market grows and stabilises with public investment vehicles and regulated investment channels, Bitcoin has the potential to evolve into a global digital currency that is widely accepted.
“I think it’s fabulous that they’re getting into it because it brings in new liquidity. They’re going to develop futures markets, options markets, I even think you’re going to start to see interest rate markets around bitcoin. We’re used to hearing things about Libor, the index for bitcoin interest rates is Bibor,” Matonis added, emphasising that the emergence of bitcoin-based investment vehicles would lead to overall improvement in liquidity and stability.