Amazon and Bitcoin: Exploring the Possibility of Cryptocurrency Payments

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A job posting and an anonymous source spark Amazon Bitcoin rumors.

A recent job ad from Amazon has fueled speculation that the e-commerce giant might be getting ready to accept Bitcoin (BTC) payments. After weeks of trending downward, the news pushed Bitcoin's price to the highest it's been this month.

This comes just days after Tesla's Elon Musk said it was "very likely" the electric vehicle manufacturer would start to accept Bitcoin payments again.

So, will I be able to pay with Bitcoin on Amazon?

On Friday, Amazon posted an advert for a Digital Currency and Blockchain Product Lead. The post said Amazon is looking for "an experienced product leader to develop Amazon’s Digital Currency and Blockchain strategy and product roadmap."

The company wants someone with expertise in blockchain, cryptocurrencies, and central bank digital currencies (gov coins) to drive its overall digital currency strategy.

London newspaper City A.M. further fanned the rumor mill with quotes from an anonymous insider. Its source said the job posting is part of a bigger plan to embrace digital currencies. She said Amazon had already moved past the stage of exploration and that, "This is a full-on, well-discussed, integral part of the future mechanism of how Amazon will work."

According to the insider, Amazon hopes to accept Bitcoin payments by the end of the year. It will then integrate other major cryptocurrencies, like Ethereum (ETH) and Cardano (ADA).

If all goes well, we may even see Amazon launching its own token in 2022.

What does this mean for Bitcoin?

The cryptocurrency's price jumped almost 25% in three days -- from $32,306 on Friday morning to $40,275 at the time of writing, according to CoinMarketCap data. The boost took Bitcoin's price over $40,000 for the first time since mid-June.

Some analysts believe this could be the start of a resurgence. It's a reasonable stance, given the extraordinary price growth earlier this year was partly driven by increased Bitcoin acceptance. However, before you get excited about another bull run, bear in mind that a lot has changed since February.

Bitcoin's price reached an all-time high of over $60,000 in April, but then halved in value in the following six weeks or so. Indeed, just a week ago (July 20), Bitcoin closed below the $30,000 mark for the first time since January.

The price slump spooked some investors, especially newer cryptocurrency investors who were experiencing this extreme volatility for the first time.

Regulation plays a part

Further steps toward mainstream Bitcoin acceptance will certainly have a positive impact. But regulation and investor confidence are also extremely important.

Countries around the world are moving toward stricter cryptocurrency regulation. And some (like China) have banned cryptocurrency exchanges and services altogether. Several countries are also launching their own gov coins, which will likely affect existing cryptocurrencies like Bitcoin.

To be clear, regulation isn't necessarily bad for crypto. Careful regulation that increases consumer confidence without smothering this nascent industry could help Bitcoin in the long term. Heavy-handed regulation, on the other hand, would have the opposite effect. That's why so many people are waiting with bated breath to see what form regulation will take.

Accepting Bitcoin payments on Amazon is a big deal in itself. Moreover, it may push other big retailers to embrace cryptocurrency. But there are also a lot of other factors at play. As such, right now, it's too early to tell how this will all play out.

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