Overstock Sees Cryptocurrencies as a Great Business Opportunity
Overstock, an online retail giant famous for embracing crypto-friendly policies in 2017, announced the satisfactory results of the application of its new business model.
Jonathan Johnson, a member of Overstock’s board of directors, informed that the company grew to accumulate capital of more than 1Bn USD, with earnings in cryptocurrencies exceeding 100k:
“We have somewhere between $68,000 and $120,000 a week in cryptocurrency revenues; people buying sheets and toasters using bitcoin or ethereum or other coins.”
The company took the first step in adopting cryptocurrencies in late 2017 when they announced the launch of a $250 million Initial Coin Offering on December 1 to boost their business model.
In this regard,
, a research fellow at the University of Cambridge who studies cryptocurrency, expressed to CNN his optimism about the consequences of this business move for the Overstock team:
“Overstock would be the largest existing company to launch an ICO to date … Blockchain is going to change the world more; I think than the internet has.”
During June, the behavior of its stocks value has been bullish, although at longer intervals it has fluctuated with regular oscillations.
For the Overstock team, the acceptance of cryptocurrencies has proved to be a reasonably successful strategy, boosting not only their business model but also improving the user experience when using the website.
According to information provided by crypto-portal The Bitcoin Pub, Jonathan Johnson mentioned that the use of cryptocurrency is exceptionally convenient.
In that sense, not only he compared a transaction in cryptocurrency with the use of cash, but also commented that for the team, cryptocurrency represents an even cheaper option than the use of FIAT money.
“We pay a processing fee for credit cards, and we employ about 40 people in our fraud department. That’s a cost of doing business with credit cards. When we take cryptocurrency, we have a very small transaction fee with Coinbase, much smaller than our credit card processing fee, and we have no fraud prevention department. It’s like a cash transaction. For us, that is a much cheaper way of doing business.”
The fact that business of overstock’s characteristics succeeds thanks to the use of cryptocurrencies is a plus for blockchain enthusiasts. Overstock may be an adoption reference in the future.
Besides Overstock, Other Companies Are Using Cryptos to Boost Their Business Models.
In addition to the well-known applications for the porn industry with PornHub and Playboy at the forefront, other companies are accepting payments in bitcoin and altcoins on a daily basis:
From a beautiful catalog of boats through Denison Yacht Sales , to the possibility of purchasing smartphones, tablets and all kinds of gadgets thanks to Trading Shenzen, the options to use cryptos seem to be increasing for blockchain enthusiasts.