Bitcoinmay have faced a recent setback in China, but it seems nothing can stop its popularity from growing. Already we have a university accepting Bitcoin as tuition payment, a car dealer accepting Bitcoin as payment for a Tesla Model S, and now an online retail store plans to accept the virtual currency towards the purchase of products such as jewelry, furniture or for that matter, whatever is available on the retail website.
The retailer in question is Overstock.com, and according to CEO Patrick Byrne, the company plans to accept Bitcoin as early as the second half of 2014.
Overstock makes over $1 billion in revenue selling merchandise it acquires from other stores, which makes it the largest retailer in the world to accept Bitcoin.
"I think we'll pick up ... the market share of people who'd prefer to pay in Bitcoin, with an honest currency," Byrne said in an interview. However, he mentioned that is decision to go with Bitcoin is "also philosophical, part and parcel with my belief in a limited government - that if you want limited government you can't give it power to expand the monetary base."
Byrne is a man who believes strongly in crypto currency like Bitcoin that doesn't have government attachment and runs in a limited supply. It's all in the name of liberation for Byrne, which might or might not work for Overstock if the government finds a loophole to stop the company from accepting Bitcoin since it cannot be taxed.
At the moment, Bitcoin is not a suitable replacement for other currencies as it is very unstable. In just a single day, the commodity fell from being worth $1,200 to $500, and we don't believe this is something many companies would want to stand behind right now. Furthermore, those who own Bitcoins are afraid to spend it, which mainly has to do with the continuity in the rise and fall in its worth. However, stabilization could come along if more avenues are opened for its exchange and if more companies and organizations pledge their support.
As of now, the best known supporters of Bitcoin are Reddit, OkCupid, Ouya, Virgin Galactic, and the University of Nicosia in Cyprus. Recently, venture capital firm Andreessen Horowitz also threw its weight behind Bitcoin by investing $20 million in Coinbase, which provides "wallets" to people to help them buy and sell and also spend Bitcoins.