Recently, as reported by CCN, Morgan Stanley published a report that showed that out of the top 500 online retailers, only three accept bitcoin, down from five in 2016. The report outlined a few motives that led to the decline, including a rise in bitcoin’s price, scalability issues, and according to the bank a lack of pressure from bitcoiners for retailers to start accepting bitcoin.
The reduction in the number of retailers that accept bitcoin has baffled Overstock executive Jonathan Johnson, president of Medici Ventures, who played a crucial role in Overstock accepting bitcoin back in 2014. At the time, CCN reported that in the first 21 hours the retailer processed $124,000 in bitcoin orders.
Speaking to Business Insider, Jonathan stated that Overstock has throughout the years seen a “modest uptick in the number of bitcoin transactions”, and that as such he believes it’s crazy that most retailers still don’t accept bitcoin payments.
One of the reasons Morgan Stanley stated is holding back bitcoin adoption are costly transactions. Johnson doesn’t see this as a valid point. He stated:The cost of accepting bitcoin is very low. It’s actually cheaper for us to complete a bitcoin transaction than it is to complete a credit card.Advertisement:
Since the cost of accepting bitcoin transactions doesn’t fall on the retailer, according to Johnson, it makes no sense not to let customers pay for the cost, if they are willing to do so and are given the option.
Another point used to argue against bitcoin adoption is price volatility. Business Insider pointed out Ethereum’s flash crash on GDAX, in which the cryptocurrency’s price plummeted to about $0.10 before regaining its near $300 value, as an example. Retailers, as pointed out, don’t want to accept a currency that c...