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Crypto Adoption: Pro-Blockchain Overstock Pays Taxes In Bitcoin (BTC)

Overstock Pays Business Taxes In Bitcoin

According to a press release from Overstock.com’s Investor portal, the Salt Lake City-headquartered online retailer and blockchain technology startup will begin to pay its business taxes with Bitcoin (BTC). You might be thinking — the U.S. seems to avoid crypto like its the plague, so how is this possible?

Well, as reported by Ethereum World News previously, per a piece from the Wall Street Journal, an Ohio politician, Treasurer Josh Mandel, pushed his state to accept BTC for 28 types of business taxes, which range from taxes on cigarette sales to employment taxes. To support this effort, Mandel, a lesser-known Bitcoin enthusiast, launched OhioCrypto.com, which allows interested businesses to register themselves for the service.

Unsurprisingly, Ohio accepts the payments via BitPay, which converts the Bitcoin payments into fiat for government treasuries. But this medium of adoption has been appreciated nonetheless.

Per the aforementioned release, from henceforth, Overstock will pay a “portion of its Ohio state business taxes in Bitcoin” via the aforementioned platform. More specifically, the online retailer, which pulled in $1.74 billion in revenue in 2017, will pay its commercial activity taxes with BTC. Speaking on the matter, fervent blockchain advocate and chief of Overstock, Patrick Byrne, stated:

We have long thought that thoughtful governmental adoption of emerging technologies such as cryptocurrencies (when accompanied by non-restrictive legislation over these technologies) is the best way to ensure the U.S. does not lose our place at the forefront of the ever-advancing global economy

Byrne added that he’s happy to be buddy-buddy with Ohio and Mandel, as the two’s efforts will help to “usher in a new era of trust via technology,” especially in the financial system.

Interestingly, Mandel recently claimed that Ohio has plans to introduce support for cryptocurrency payments for all forms of taxes by 2020.

Overstock Still Bullish On Blockchain Technologies

This move only accentuates the fact that Overstock is bullish on blockchain technologies and the byproducts of this innovation.

The WSJ recently explained that tZero, a blockchain-based trading platform that is a subsidiary of Overstock, is burning through money quicker than many can utter “HODL.” More specifically, Overstock’s blockchain branch is reportedly burning through a jaw-dropping $2 million a month, with seemingly little-to-no results. However, Byrne, speaking to the Journal in an interview, exclaimed that his firm has “got cold fusion on the blockchain side,” indicating that despite the lack of public knowledge on tZero, progress is being made behind the scenes at an unmatched pace. Bryne went on to tout how optimistic his firm is on this innovation.

In fact, Overstock is so optimistic about blockchain technology that the firm intends to cut off (sell/liquidate) its retail arms, before becoming a fully-fledged blockchain startup. But at the moment, this seems to be a quixotic dream, as Overstock’s shareholders don’t seem to be all too pleased with the idea, especially as the stock continues to move lower and lower.

But, with ample effort, the American firm could eventually transition to go all-in on blockchain and cryptocurrencies — it’s just a matter of time. So, Overstock could be the sole firm that catapults this nascent technology to the global stage, especially as it shows its “skin in the game” paying business taxes with BTC.

BTC and Chart Title Image Courtesy of Andre Francois Mckenzie Via Unsplash
About author

Nick has been enamored with cryptocurrencies since foraying into the industry in 2013. He has since gotten involved as a reporter, covering news on a number of blockchain- and crypto-related outlets. Email Nick: [email protected]