In a recent interview between Overstock.com’s Judd Bagley and our friends over at Digital Currency Council, some interesting bits of information were revealed. It looks like Overstock.com want to offer discounts to people purchasing goods in Bitcoin but, without the proper education and training, that will not happen anytime soon.
Overstock.com & Bitcoin
When Overstock.com announced they would start accepting Bitcoin last year, there was so much excitement and buzz surrounding our beloved digital currency. Many people saw this announcement as a “vote of confidence” to take Bitcoin adoption and awareness to higher levels; something we have all been craving for so badly.
Things became even more interesting when it became clear that Overstock.com would not be exchanging the full transaction amount from Bitcoin into fiat currency straight away. In fact, roughly 10% of every order paid in BTC is kept in Bitcoin by Overstock.com, as a way to show their support and belief that Bitcoin is here to stay for many more years.
Until this point, one thing had been lacking from Overstock.com, and that is discounts for Bitcoin customers. As Bitcoin payments invoke far lower fees compared to traditional payment methods, there should be a kickback of some sort to the people saving you overhead costs. That has not happened yet but it looks like we will see Bitcoin discounts in the near future.
Education & Training Remains Important
One of the reasons why it has taken a while before even looking into Bitcoin discounts, is because Overstock.com has to convince more people in their supply chain to accept the digital currency as well. Not only will this require a lot of time and effort but it will also require educating companies and their staff. Furthermore, these companies need to be incentivized to work with Bitcoin.
While it may be obvious to these companies they will pay far less when it comes to payments – and these payments will come in a lot faster compared to working with wire transfers or checks – they want more. Overstock.com may consider paying them a little bit extra if it comes to that, but it will be a “last resort” method.
The same story goes for paying Overstock.com employees in Bitcoin; an offer not many have taken up on just yet. Despite the company they work for accepting Bitcoin payments the employees hardly know what it is or where to use it. However, if they would choose to accept Bitcoin, it might grant them a small bonus at the end of the year.
Bitcoin-only Sales & Discounts
As you can see, there is still a long way to go before we will see continuous discounts on items and services purchased with Bitcoin. Many people need to be properly educated on the Bitcoin phenomenon before it can even be considered by major retailers such as Overstock.com. And even though Rakuten.com offered a discount on Bitcoin sales, they could only do so for a full week, as their supply chain isn’t accepting Bitcoin payments either.
Once we can obtain a broader digital currency adoption, with more & more people valuing the blockchain technology and its potential, the story will start to change. But it won’t happen any time soon as there is far too little going on in regards to educating people on the digital currency, the blockchain and everything that is not related to the monetary aspect.
However, that does not mean there won’t be temporary Bitcoin discounts on Overstock.com in the near future…