Overstock was one of the first high profile companies in the world to embrace Bitcoins and integrate it as a payment method for their online shop. It seems like that was a good idea, as they have since the launch on January 9th sold for well over $1,000,000 worth of goods with Bitcoin as payment. The partnership with Coinbase has helped Overstock to accept the cryptocurrency without any problems and saved them a decent amount of money in transaction fees.
“There was a huge surge [in Bitcoin spending] the first day, with people showing support. It’s since dropped to $20k to $30k per day, but it’s gradually increasing from there. It’s going well,” Overstock CEO Patrick Byrne told to BusinessInsider.com.
From a business point of view, integrating Bitcoins was a great idea for Overstock as it has many advantages compared to traditional payment methods. There are no high fees, no risk of chargebacks or any other sort of fraud and even though the Bitcoin is volatile by nature, it is not a problem as Coinbase exchange the Bitcoins to USD instantly upon accepting the payment.
Byrne is also impressed by the fact that Bitcoin payments basically eliminates all possibilities of fraud, as he said ” a person can order a television online, wait for it to arrive, then call Visa and tell them there’s a dispute with the charge and not to pay it,” and continued “We do a really good job of preventing fraud, but Bitcoin makes fraud pretty much impossible”.
This makes the Bitcoin an ideal payment method, which makes you wonder why no other big company have picked up the cryptocurrency yet. Byrne however is not accepting Bitcoins only because it is good for his business, but also for political reasons as he explains here to BusinessInsider.com:
“I get an enormous pain in the ass when I think of our centralized financial system, I think our country’s gotten under the thumb of Wall Street oligarchs. They’re enemies of the republic and Bitcoin represents a mass movement to get rid of the knuckleheads. There’s a huge political side to this that I endorse.”