Overstock Piles Up Weekly Revenue Of Up To $120,000 Weekly In Crypto
Online retailer, Overstock supposedly benefits from cryptocurrency transactions, as opposed to traditional credit card payments. According to a member from Overstock’s board of directors, Jonathan Johnson, the costs associated with credit cards are fairly high compared to the small transaction fees of cryptocurrencies.
In particular, Johnson addressed Overstock’s fraud department, stating that there are over 40 employees working to resolve issues on behalf of both the consumers’ and the credit cards’ network. The cost of having such a department along with the corrections made, according to him, is too high compared to that of cryptos.
Johnson appears to be attracted to cryptocurrencies, as he believes that accepting the likes of Bitcoin and Ethereum induces ease of use at much lower costs. He added that the API of crypto exchanges and brokerages that allows crypto payments without the need of creating a separate department is what makes them superior.
To quote his exact words, Johnson said,
“We pay processing fee for credit cards, and we employ about 40 people in our 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… for us, that is a much cheaper way of doing business.”
Based on existing claims, Johnson also discussed Overstock’s revenue, stating that its weekly earnings from cryptocurrency alone is between
“$68,000 and $120,000 a week… people buying sheets and toasters using bitcoin or Ethereum or other coins.”
His stance on cryptocurrencies only proves to get stronger and stronger as he appreciates the low barriers of entry to the market. In particular, he believes that traditional markets make it difficult for retailers to invest, as only accredited and well-established investors are welcomed.
In terms of Overstock’s current value, it has been revealed that the company’s involvement and integration of cryptocurrencies has increased their share prices by over 11 percent.
Despite the negativity surrounding cryptocurrencies, it is evident that its implementation is bringing good use for real life purposes, making Overstock one of many firms to have benefited from it.