• Mon. May 20th, 2024

Editorial: Amazon’s Adoption of Bitcoin is a Game Changer!

Bitcoin Amazon

In the past few days, Bitcoin prices have been bullish. Apart from Elon Musk (pun intended), here are a few reasons why this is happening. 

Bitcoin and Amazon are a Powerful Duo

Like it or not, cryptocurrency prices historically have risen at some point every summer. 

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But we think that summer is just a small part of this. Can you say Amazon…Amazon announced this weekend that

they are about to accept Bitcoin as a payment option and that they would be creating their

own Coin sometime in 2022. That’s a powerful boost for Bitcoin…I would go as far as to say -Bitcoin with its

acceptance by Amazon is mainstream. This Amazon announcement will most. likely be followed by an avalanche

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of institutional money…Now I can see Bitcoin going to 100K, 200k, or even a million…

A simple perusal of the markets on a year-over-year basis provides the best proof of this. 

Amazon Bitcoin

Elon Musk, Jack Dorsey, and Cathi Wood Walk into a Bar…

Also propelling Bitcoin and other cryptos was the recent panel discussion between Musk, Twitter founder Jack Dorsey and

Ark Investments CEO Cathi Woods. All three doubled down on the future of Bitcoin and especially Ethereum which they all held.

His recent comments about SpaceX holding Bitcoins with no intention to sell affected Bitcoin prices. 

Many within the cryptocurrency space have had their fill of Elon Musk and his antics.

 But the public still pays attention to his every word.

So, yes, Elon Musk had some effect on Bitcoin prices but not as much as before. 

People recognize he is not here for everyone’s benefit but himself. 

So, Elon does what Elon wants because he has something to gain from his actions. 

While this has generated immense profits (before now) for him, it will be hard to replicate the intensity with which the markets responded at first that led us into the bear market in which we find ourselves. 

So, as Elon Musk smiled at the bank, his social capital went from “crypto-hero” to “crypto-zero”, and the markets recognize this in the marginal rise in prices. 

Cryptocurrency Markets are Maturing

At some point, it became inevitable that the cryptocurrency markets will mature. 

We can judge this because everyone is doing something about the cryptocurrency space (including the World Economic Forum!).

In response to this, Bitcoin prices have shot up. 

And Bitcoin is still the king of the hill, like it or not. 

As the global mass media continue to cover cryptocurrencies and their allied technologies, the interest in these life-changing technologies is also on the increase. 

We can also see the increased institutional interest continue as almost all investment banks have one form of a cryptocurrency desk or another.

Bitcoin amazon

Bitcoin Has Become Legal Tender 

That Bitcoin has become legal tender through the extraordinary efforts of Brock Pierce and his team in El Salvador is proof of concept that Bitcoin is here to stay. 

It sheds light on how best to digitize money and capital without the red tape that we have all been used to. 

It also has had a ripple effect on Bitcoin prices.

 When central banks start adding Bitcoin to their balance sheets, Bitcoin prices go up by default. 

It also presents a new form of intervention by central banks besides quantitative easing and the obverse interest rate hikes we’re all used to. 

As such, we shall see an increase in this kind of adoption by governments who want to spread their risk rather than keep it within their geographical jurisdictions. 

Jack Dorsey is Bringing Decentralized Finance (DeFi) to Bitcoin

Last week, Jack Dorsey announced Square is going into DeFi services for Bitcoin. 

He showed this in a series of tweets

Even though other services offer these kinds of services, a heavyweight payments system like Square offering DeFi services is a big deal. 

It also offers new ways to unlock the locked liquidity that exists within the Bitcoin space. 

The sharp owls who want to benefit from such innovations are going to buy Bitcoins and HODL them. 

Bitcoin prices are already going up because of this. 

New liquidity inflows into Bitcoin will also occur on a massive scale. 

Because of the open-source nature of the Bitcoin blockchain, we should expect other similar services. 

As further innovation occurs to increase transaction speed on the Bitcoin blockchain, likely, these services will now become the majority of transactions. 

As this occurs, Bitcoin prices will rise as a net effect. 

The Crackdown on Bitcoin Miners Has Increased Bitcoin Transaction Confirmation Fees

There have been different kinds of crackdowns on Bitcoin miners this year. 

These range from the crackdowns in the People’s Republic of China (PRC) to the recent crackdowns in Malaysia.

The chief argument presented by the governments involved is the cost of electricity. 

As a consequence, Bitcoin transaction confirmation prices have risen.

In an auction-style process, where prices go to the highest bidder, Bitcoin miners most times will take the highest fees first before considering others per block. 

The net effect of this has been increased liquidity into the Bitcoin ecosystem.

This liquidity is not to for investment purposes, HODLing, or speculation, but for covering the cost-of-transfer (COT) for bitcoin transactions. 

The net result of this will be an exponential increase in the base asset because of the rise in transaction fees. 

It has contributed to the Bitcoin price increase that we have seen so far. 

As summer progresses, we shall see an increase in these types of crackdowns. 

And Bitcoin prices will also increase. 

Geopolitical Factors are in Play 

Several state actors have banned Bitcoin and the Altcoins this year. 

And most of these state actors have higher population sizes than most. 

India and the Federal Republic of Nigeria stand out in this regard.

One common factor that these countries have is the fact that most of these populations are between 18-45.

These are the ones who are most interested in cryptocurrencies and what they can do. 

In the face of these bans, unregulated peer-to-peer marketplaces have arisen.

Rather than the prices of digital assets rising or falling by the forces of demand and supply, higher prices ensue because of the perceived scarcity because of these government restrictions. 

This phenomenon is also known to occur in other markets where assets are restricted or banned. 

The higher prices on a unit scale might now push cryptocurrency prices up. 

But en masse, the effect will show up one way or the other. 

As people figure out ways and means to evade government rules, these artificially high prices will find their way into the cryptocurrency space. 

India’s population is over 1 billion people, while Nigeria has a population of over 200 million. 

Do the math. 

Quantitative Easing is Finding its Way into Bitcoin and the Altcoins

 Last year, world governments printed enormous amounts of money and pumped them into the global financial system. 

It occurred because of the economic recession that took everyone by surprise because of the COVID-19 pandemic. 

There have been fears of a Zimbabwe-style or Weimar Germany hyperinflation. 

Inflation will occur but marginally. 

The reasons for this are twofold. 

The first is that the V-shaped economic recovery is already underway. 

Even though the threat of a further economic dip occurs because of stagnant COVID vaccination rates and an increase in COVID-19 dealt variant infections, the world is on its way to economic recovery. 

The second is that much of this liquidity will ultimately find its way into the new cryptocurrency markets. 

Bitcoin prices are going to increase exponentially because of this. 

The Altcoins will rise as well. 

As the world continues to discover what cryptocurrencies are, what they can do, and how they can change lives, the world will benefit greatly from the anti-inflationary properties of Bitcoin and the Altcoins.

Viva la Bitcoin! 


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Kevin Moore - E-Crypto News Editor

Kevin Moore - E-Crypto News Editor

Kevin Moore is the main author and editor for E-Crypto News.