Last Updated on November 4, 2022 by Bitfinsider
Google, known for its world class search engine, has partnered with Coinbase, the king of digital currency exchanges, to enable consumers to pay for cloud services using cryptocurrencies such as Bitcoin, Dogecoin, Litecoin, and Ethereum.
The action brings the objectives of bitcoin and its digital analogues closer to fruition. In spite of the fact that bitcoin and many of its crypto relatives have assumed speculative or even hedge-like statuses in recent years, many of them were originally created as payment instruments. They were designed to displace checks, credit cards, and fiat currencies, but their progress has been modest due to the volatility that continues to weigh them down.
It is incredibly difficult to predict when Bitcoin and its crypto family will see price increases or decreases. For this reason, many establishments and businesses have been hesitant to accept cryptocurrency payments, and to some extent, we can’t blame them.
To state an example, imagine an individual purchases $50 worth of goods in a store using bitcoin. For whatever reason, the store does not immediately convert BTC to fiat currency, and approximately 24 hours pass. The price of BTC then decreases, and the $50 becomes $40. The buyer keeps everything he or she purchased, yet the store ultimately loses money. Is this scenario equitable? Not everyone agrees.
This is why companies like Google are so vital. They comprehend the original aims of bitcoin and digital currencies and are attempting to transform them into beneficial instruments for the general public.
Coinbase has benefited greatly from the news, as seen by a near nine percent increase in its stock price following the release. As the company is primarily dependent on bitcoin, its stock prices have been declining, and as long as the asset continues to decline, so will the trading platform’s shares.
In a recent interview, Amit Zavery, vice president, general manager, and head of platform at Google Cloud, explained: “The Google Cloud platform infrastructure service will initially accept cryptocurrency payments from a handful of customers in the web3 world who want to pay with cryptocurrency thanks to an integration with the Coinbase Commerce service.”
Coinbase expects to generate revenue from transaction fees between Google and its cryptocurrency-paying customers. This is how the company plans to generate revenue.
Google added that this move is only an experiment to determine not only the popularity of digital currency payments, but also whether or not it can go further into the world of virtual assets.
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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.