Amazon has been rumoured to be working on a proprietary digital currency for years, but the recent rumours seem to be coming from a more reliable source. The coins would be called Amazon Crypto Coin and could be used to buy anything you want on Amazon.com. However, there is a risk that the coins may not catch on with customers and face an uphill battle. Here are 3 reasons why this might happen and why it’s a good idea to invest in Amazon Coin.

 

Amazon Coins: The Future of Payments?

The Amazon Crypto Coin rumour has been around for years, with various reports stating that Amazon would add the coins as a way to accept cryptocurrencies as a form of payment. Each Amazon coin would reportedly cost $0.30, or about 0.03 cents, making them cheaper than buying them in the store, which can be up to $5 per coin at the time of this article. If coins are simply sold at a higher price than the physical product, they may not attract as many customers as expected.

Potential Competition

Amazon Coins would face competition from any coin that is accepted at an online retailer. For example, we could potentially see an increased demand for coins from both vendors and customers.

 

Why Amazon Coins may not work

Cryptocurrencies, such as Bitcoin, have grown to become the most well-known type of cryptocurrency. A single Bitcoin is worth more than $6,200 at the time of this writing but can be bought for as low as $1,000. If Bitcoin works for retailers like Amazon, why would Amazon Coins not be successful?

1. Technology Transfer – Since Amazon started its Fulfillment by Amazon program, it has been a leader in technology. The company started in 1995 with the idea of delivering goods for a small fee and Amazon turned this into the delivery of millions of products for free. Some of this innovation is now in Bitcoin, and some of it is part of the Amazon Coins plan.

2. Security – Cryptocurrencies are created and destroyed by a cryptographic process.

 

Why Amazon Coin will work

Amazon Crypto Coin would function just like Amazon points do. You can use your coins to purchase things on Amazon.com but Amazon would need to accept it as a form of payment. If Amazon accepts it, customers will see it as an easy way to get discounts on things they need or want.

If Amazon accepts it, customers will see it as an easy way to get discounts on things they need or want. Amazon would collect transaction data and make it available to its business partners. Amazon has many partners who help with business operations such as Amazon Pay, Fulfillment by Amazon, Seller Fulfillment, and Amazon Web Services. By collecting transaction data from these partners, it could give insight into what types of things people are buying on Amazon.com.

 

Conclusion

Amazon has built a huge, loyal following with its user-friendly shopping app and its easy to navigate online website. It doesn’t hurt that you can shop for pretty much anything and the prices are always a bit below the competition.

By offering the ability to buy in-game items using Amazon Coins, Amazon could establish a first-mover advantage in the digital gaming and cryptocurrency industries. As the main street of commerce, we predict that Amazon will push Coin purchases to the top of its product list to draw more customers and keep them happy.

If you’d like to learn more about Amazon Coins, click the “Follow” button next to our name at the top of the page. We are based in Edinburgh, Scotland but provide global services to our clients.