Overstock.com Now Accepting Bitcoin?

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Jan. 9 (Bloomberg) –- Coinbase CEO Brian Armstrong discusses how Coinbase works with merchants to enable bitcoin payments with Emily Chang on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

Really interesting.

You left airbnb to start coin base before became -- before bitcoin became a big deal.

We were moving money all over the world and i was working on fraud prevention and i decided to take a big bet on bitcoin and we thought it was going to be a big deal.

Turns out, that was right in with a company like overstock, how complicated is that?

You are processing all of this.

What does that involve?

We did an integration that allows them to midi great there -- to mitigate their exchange rate risk.

They are converting it to dollars.

It is really a cheaper way for them to accept payments from anybody, all over the world.

Does that mean they are not taking on any risk?

That is right.

We are providing that as a company.

So you are taking the risk.


Overstock says they are accepting bitcoin.

Alibaba says, we are not.

How does the volatility affect you guys?

We think 2014 will be the year a lot of big merchants start to accept bitcoin.

But you are going to be taking on all the risk.


There is a market lace -- a marketplace for these things.

Overstock was the largest merchant to accept it so far.

They are hard goods retailers.

It is a very mainstream website that is not about tech early adopters.

That was the first time that it really happened in the bitcoin world.

We think it is the starting point for a big series of adoptions.

What about the regulatory issues?

The federal government saying, look, this is a big issue.

We need to take a look at it and figure out tax rates for bitcoin.

Down the line, what if they do what the chinese government did and say that bitcoin is not allowed at all?

We are supported with working with the regulators in this process.

All of the conversations we have had is very positive and i think they are on a fact-finding mission right now to try to understand how the economy is going to develop with the additional currencies.

What are you doing to hedge your bets?

What if bitcoin goes to zero?

We do not think that will happen, obviously.

I think digital currency as an invention or trend has just started.

The next 10 years are going to be a wave of innovation that happens around that.

For example, another digital currency came, i think we could adapt to that.

I do not think that is likely right now.

He spent a lot of time looking at all the different risks in the business and thinking about potential downsides, whether it was compliance or risk in the software.

We got very comfortable and build a great team of people who we think can make that happen.

Is that mean you are porting bitcoins right now?

As a company, we do not hold bitcoin as an investment or anything like that.

You are trying to keep a net zero exchange rate at any time.

Our core business is making bitcoin easier-to-use for consumers and businesses.

They evaluated the options out there and put their faith in us.

What do you think of all the bitcoin mining that is happening right now?

More and more people getting into the solving these out rhythms to try to earn bitcoins.

Bitcoin mining is an essential part of the ecosystem.

It is not something we participate indirectly -- in id directly.

It is getting harder to mine them because more and more people are doing it.

What if people lose the incentive?

There is an efficient frontier where the appropriate amount of people in the world are mining.

It is an arms race.

It has reached that critical mass, the point where there is enough mining going on all over the world.

I do not think it will reduce the amount of mining out there.

Where is bitcoin today?

About $900 or so.

This text has been automatically generated. It may not be 100% accurate.


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