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Posted on 01/10/2014 6:06:49 AM PST by Errant
Newegg, the online electronics retailer worth at least $2bn in annual revenue, has tweeted yet another hint that it will begin accepting bitcoin payments in the near future. The California-based company posted this teaser today:
"Still waiting for an update, but will let you all know as soon as we receive word! RT @TheIanMerrill: @Newegg do you take #bitcoin yet?"
There has been much online speculation over the past month as to what Newegg might be planning. A company of this size accepting bitcoin would be one of the biggest gestures toward mainstream bitcoin acceptance yet.
In Other News:
Bitcoin Stares Down Impending Apocalypse (Again)
China's Bitcoin exchanges aim to work around rules
Taxpayer Advocate to IRS: We Need Bitcoin Guidance
I suspect that newegg’s margins a re lower than overstock’s. On the other hand, they need a leg up Amazon.
Is it safer then PayPal?
In what regard?
I wouldn’t, at least not yet. NewEgg, being an electronics retailer, probably operates at low margins. BitCoin values are too unstable for use as an exchange medium.
Agree. I've bought a lot of equipment from Newegg. I rate their customer service as high, perhaps even higher, than Amazon.
Look it up on WikiPedia for more info than I could possibly give here. It’s been the rage for the past year or so—it’s a cryptocurrency that exists on computers. PayPal is more like a banking wallet, using dollars. This is quite different. It bypasses the normal fiat currencies, but the value fluctuates. Governments are looking at it with a jaded eye, liking neither competition nor confidentiality.
Speaking of low margins, they also don't have to worry about chargebacks, or a 2+% fee to CC companies. It's more like 1% for the retailer when using Bitcoin for transactions, IIRC.
Amazon operates at a loss, but they make up for it in bulk. I love Newegg for PC building, but I’m afraid they’re going to go the way of other custom shops.
New Phillipino Bitcoin Exchange Targets Remittance Market
"There are an estimated 2.2 million Filipino expats around the world, and last year they sent over $13.9bn back home. This is obviously a huge untapped market."
That's more than the entire value of ALL of the Bitcoins that exist in the world today!
Currency Chiefs Tell New York Fed Probes May Change Practices
A pretty unusual drop on the dollar index today:
Newegg actually has staff that monitor review sites and contact complainants directly to fix problems.
I bought a computer from them a month ago.
Great service and it got here fast.
That’s literally how they work. Even their CEO admits that they lose money on most sales but make it up with things like Amazon Prime memberships and big ticket items.
Would kind of suck if NewEgg took in $1 million in Bitcoin orders at $600/@ only to see the Chinese attack BC the next week, and seeing it close at $300/@.
“reaching 51 percent of all hashing power is a serious threat to the bitcoin community”
OK. So THIS time a “crisis” was averted simply due to altruism. What about the next time? What if a MALICIOUS consortium decides to grab 51% of hashing power? Then what?
You make good points... they don’t inventory the coins. I guess the charging/cashout would have to be automated to happen quickly and 24/7 to limit volatility, but I don’t see why that should be a problem.
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