One Company Ready for the Next Wave is Overstock.com
Overstock.com has always been ahead of the curve on cryptocurrency and its place in customer service. Recently, the company’s former head and still chairman, added some interesting thoughts on how the currency has been used at Overstock and its future.
He said this on revenues:
“We have somewhere between $68,000 and $120,000 a week in cryptocurrency revenues; people buying sheets and toasters using bitcoin or ethereum or other coins,” Johnathan Johnson said, in an address to the Heritage Foundation, a conservative think tank in Washington, D.C.
The company also is saving money on more efficient processing and security:
“We pay a processing fee for credit cards, and we employ about 40 people in our fraud department. That’s a cost of doing business with credit cards. When we take cryptocurrency, we have a very small transaction fee with Coinbase, much smaller than our credit card processing fee, and we have no fraud prevention department. It’s like a cash transaction. For us, that is a much cheaper way of doing business,” said Johnson.
Johnson, speaking on behalf of Overstock, also talked briefly about the ICO and token markets:
“Today, so many of us can’t participate in the capital markets the way accredited investors or well-connected investors can. And those of us that are trying to raise money have a hard time crowdfunding or raising money in a democratized way.”
Overstock also craves consistency and clear guidelines on where the government stands.
“It’s grey. It means some people are trying to comply with it, some people are trying to push the edge of it. I think it’s time for the SEC or Congress to provide guidance to say ‘If you’re issuing a coin or a token, security token or an ICO, this is what makes it a security and this is what not.’ Clarity will be very helpful here,” Johnson said.
“Bitcoin will be used for illicit transactions – no question. So [will] cash, so [will] credit cards, so was salt when it was paid as salary to Roman soldiers.”