Overstock's board member Jonathan Johnson believes that cryptocurrencies are a better payment method than credit cards. Credit cards use a centralized system, and there are also many buyer protection measures that allow buyers to request refunds and cancellations from third-party service providers. In addition, some unforeseen payment errors may cause legal issues and complex issues that require the company and credit card network operators to resolve.
Jonathan Johnson believes that Overstock only hired more than 40 employees in the anti-fraud department. Their main job was to monitor whether credit cards were repaid on time and to resolve any potential problems with the buyer or credit card network. Therefore, Jonathan Johnson believes that accepting cryptocurrencies such as Bitcoin and Ethereum can reduce the burden on human and material resources and the transaction costs are relatively low. In fact, mainstream cryptocurrency exchanges like Coinbase have begun to provide application programming interfaces (APIs). Now, whether it is a large company or a start-up company, cryptocurrency payment transactions can be realized without spending a lot of money to build infrastructure.
Jonathan Johnson said:
"Using a credit card, we have to pay a commission, and we also have to hire a lot of manpower to prevent fraud. This is the cost of doing business with a credit card. Choosing a cryptocurrency, the transaction cost between us and Coinbase is very low and much smaller than credit card transactions. And we don't need to set up a fraud prevention department, it's like digital cash transactions. For us, this is obviously a cheaper way to do business."
This year, big companies such as Twitter, Square, and Revolut have begun to integrate Bitcoin and other cryptocurrencies. However, due to the high volatility of cryptocurrency prices, some insiders feel that it is not appropriate to integrate cryptocurrency payments.
The Heritage Foundation, a Washington-based think-tank, believes that Overstock’s weekly cryptocurrency income is approximately $68,000 to $125,000. However, due to market volatility, their weekly income may be very different.
However, Jonathan Johnson believes that retail users using cryptocurrency for payments are actually small payments - "quantity" rather than "quantity" - and therefore are unlikely to be affected by price increases and declines in the short term. Impact. He said:
"Although we encrypt currency income between $68,000 and $120,000 per week, people use bitcoins, Ethereum, or other cryptocurrencies to buy items such as sheets and toasters."