Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek

Trending

Filed under: News

 

Overstock.com Is Going To Accept Bitcoin In 2014

Dec 21 2013, 1:26pm CST | by

Overstock.com Is Going To Accept Bitcoin In 2014

Photo Credit: Forbes
 
 


Overstock.com has plans to become the first major U.S. retailer to accept bitcoin. In an interview with newsBTC, Overstock.com CEO and Chairman Patrick Byrne said that the company will start accepting the peer-to-peer digital currency in the second half of 2014./>

Overstock.com is going to partner with bitcoin payment processors such as Coinbase or BitPay to handle the currency. Byrne acknowledged that bitcoin prices are volatile, which is why the online retailer will immediately liquidate the currency into dollars or find a market to hedge the risk.

What makes bitcoin unique is that it is not backed by any government or central bank. To conduct a transaction, the buyer requests an update to a public transaction log within the blockchain. The blockchain is managed by a decentralized network that verifies and puts a time-stamp on payments. This network is maintained by bitcoin “miners” that receive transaction fee rewards and new bitcoins. There are around 12.1 million bitcoins in circulation today with the total number being capped at 21 million.

Overstock.com is not the first company to accept bitcoin for payments. Richard Branson, the billionaire founder of Virgin Group, announced in November that Virgin Galactic would let space tourist customers pay for flights with bitcoin. Dating website OKCupid.com accepts bitcoins for their premium subscription called “A-List.” Even a car dealership in California sold a Tesla Model S electric vehicle in exchange for bitcoins this month.

At the beginning of 2013, one bitcoin was valued at $13. The price of the digital currency has been surging throughout the year and even hit over $1,200 per bitcoin this month. However, that price was quickly dropped to half.

Why did bitcoin lose have their value this month? Right before the price drop, the Chinese government denied banks from accepting bitcoins as currency. Baidu.com, the Chinese equivalent of Google, said that they would no longer accept bitcoins for payment. The Chinese government also banned third-party payment companies from transacting with bitcoin exchanges. The Chinese economy was largely responsible for driving up the price of bitcoins, which is why there was a major drop following that news.

Overstock.com generated over $1 billion in revenues this year and made the decision to accept bitcoin a few weeks ago during a company review. What are your thoughts about companies accepting bitcoin?Let us know in the comment section below.

Source: Forbes

iPad Air Giveaway. Win a free iPad Air.

You Might Also Like

Updates

Shopping Deals

 
 
 

<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

 

Comments

blog comments powered by Disqus

Latest stories

Karrueche Tran Under Fire for Blue Ivy Comments
Karrueche Tran Under Fire for Blue Ivy Comments
Beyoncé fans are upset with Karrueche.
 
 
Bill Hader Thinks Justin Bieber Is Worst &quot;SNL&quot; Of All Time
Bill Hader Thinks Justin Bieber Is Worst "SNL" Host of All Time
Not the first time he's mentioned his dislike for the pop star.
 
 
Doc Rivers Gets 5-Year Extension With Los Angeles Clippers
Doc Rivers Gets 5-Year Extension With Los Angeles Clippers
The Los Angeles Clippers gave president of basketball operations and head coach Glenn "Doc" Rivers a five-year contract extension on Aug. 27 which runs through the 2018-19 NBA season. It was new Clippers owner Steve Ballmer's first major move since officially purchasing the franchise earlier this month.
 
 
Josh Gordon's 1-Year Suspension for Substance Abuse Upheld
Josh Gordon's 1-Year Suspension for Substance Abuse Upheld
The NFL upheld its one-year suspension for Cleveland Browns wide receiver Josh Gordon on Aug. 27 for violating the league's substance abuse policy.
 
 
 

About the Geek Mind

The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.

The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.

Read more about The Geek Mind.