Amazon has just registered some crypto-related domain names, which may or may not mean that it will soon offer its customers the option to buy products using crypto.
On the face of it, this sounds like great news for crypto-currencies. Finally, we will see widespread acceptance of crypto as currency in transactions.
However, this might just as well be the beginning of the end for crypto. Widespread acceptance will expose any weaknesses in the technology. Once people realize the drawbacks associated with crypto, the demand for them may very well go down.
Transacting in crypto is both expensive and slow. These are technical issues that are unlikely to improve in an environment where an increasing number of people want to transact. The whole network may grind to a halt, or people will simply start dumping their crypto in order to obtain the more convenient to use dollar.
In such a scenario, there will be few buyers. If crypto turns out to be deeply flawed as currency, the price of it will go to zero.
However, even if the current issues with speed and costs are sorted out, the price of crypto may still go down.
Amazon is unlikely to want to hold the crypto it receives for its goods. It will sell its crypt almost immediately to obtain dollars. Amazon's acceptance and a general willingness to transact in crypto by crypto-holders will introduce a large volume seller into the crypto marketplace.
Unless crypto turns out to be a great deal more convenient to use as currency than dollars, there will be few buyers to soak up the supply of crypto brought to the market by Amazon.
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