Nothing moves the cryptocurrency market quite like rumours that Amazon is about to get involved in a big way. Today, another of these rumours came to the table as reports circulated that the online retail giant is considering a partnership with Ripple. Ripple has been a somewhat controversial cryptocurrency, due to a belief among some investors that it is the currency favoured by banks and other financial institutions. An Amazon partnership would expose the currency to hundreds of millions of web users and would almost certainly increase demand for the coins.
What does the rumour say?
According to the reports, Amazon may be considering accepting Ripple as a means of payment due to its low transaction fees and the high inventory of coins. Ripple transaction fees are charged at a fixed rate. That means that if the value of Ripple increases, the dollar cost of the transaction falls. If Ripple were to experience the kind of growth that would occur after an Amazon partnership is announced, then the transaction fees would become truly microscopic. It’s easy to see why such a move would be highly lucrative for a major internet business like Amazon.
How reliable is the news?
Unfortunately, it doesn’t look like there is much concrete data to back up these reports. There are no comments from Amazon itself or reports from sources within the company. Instead, it looks like a number of analysts have concluded that a move like this would make sense for Amazon. Analyst reports like this are common across the world of business, but it would be silly for investors to get too excited at this point. Whilst Amazon has registered a few cryptocurrency related domain names, there are few signs that the company is developing the type of infrastructure that a move like this would require. Cryptocurrency and Amazon is certainly a story to watch, but don’t expect any changes in the immediate future.
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