Utah-based Overstock.com is showing just how bullish they are when it comes to Bitcoin and blockchain technology. Going forward, they will be making disruptive technology more of a focus.
Four years ago, Bitcoin was celebrating reaching the $1,000 milestone. Adoption, interest, and even awareness was nowhere near what it is now, but some companies could already see the impact that cryptocurrencies would have on the future. One such company, Overstock.com, made their intentions clear in 2014 when they began accepting virtual currencies as payment on their e-commerce site.
Change of Focus for Overstock
While the company does, of course, still have an interest in online retailing, KSL recently reported that the Utah-based platform will shift their focus to blockchain technology and cryptocurrencies. In fact, the platform’s CEO, Patrick Byrne, had previously disclosed that Overstock.com would be “developing more nontraditional means of growth and profitability.”
They’re not the only ones who believe in the disruptive technology though. Hong Kong-based private equity firm, GSR Capital, invested $160 million into Overstock.com, most of which will be used to fund the platform’s tZERO cryptocurrency unit. In addition to Bitcoin, the platform accepts more than 50 different cryptocurrencies on their site.
The world’s first crypto does seem to hold a special place in Overstock.com’s heart though. Half of all cryptocurrency revenue is converted to U.S. dollars while the remaining 50% is kept as Bitcoin.
Not Leaving Blockchain Behind
However, it’s not all about the Bitcoin. Jonathan Johnson, who is the president of Medici Ventures, had this to say:
We think blockchain is the next revolutionary, transformative technology. Like we were early on the wave of e-commerce and the internet, we think we’re even earlier on what we think will be a tidal wave of blockchain revolution.
As a wholly owned subsidiary of Overstock.com, Medici Ventures focuses on and invests in blockchain technology. The company aims to encourage its usage to promote peer-to-peer relationships and as a solution to the financial problems facing the unbanked population.
Johnson is so confident in the technology that he believes we will see a drastic increase in adoption within the next few years. To the critics, he added:
For those that are calling it a fad, the Internet may have been a fad to them in 1988.
Well, we all know how the Internet turned out.
We view ourselves as value investors, trying to build long-term value for our shareholders. We think blockchain technology will be the wave of the future, and we want to nurture that, advance it in ways that we think will be meaningful.
The thing about Overstock.com being so heavily invested in cryptocurrencies is that its stock prices seem to almost mirror those of the crypto market. The e-retailer saw a massive spike after Bitcoin’s phenomenal numbers in December but then followed its subsequent downward spiral.
However, with their multi-million-dollar cash injection and the growing adoption of blockchain technology, the company could soon be laughing all the way to the crypto bank.
What do you think of Overstock.com’s devotion to decentralization? Let us know in the comments below!
Images courtesy of Pixabay and Shutterstock.
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