CCBeast Special


Overstock’s member of Board of Directors says that Cryptos Are Better than Credit Cards
Editorial Team

The debate over whether cryptocurrencies are better than other means of payment is long-lasting. Now, Jonathan Johnson, a significant member of the board of directors of Overstock, stated that cryptos are a much better payment method than credit cards.

US-based Overstock is a major online retailer that currently valued around $ 1 billion dollars.

This is the biggest difference between paying with cryptos and paying with credit cards; it is possible to request funds and cancellations for payments. This could create legal problems and different issues that need to be addressed by different involved intermediaries.

However, this problem cannot arise with cryptocurrencies. One of the payment is done, that’s all. At the same time, the fees-paying with crypto is much lower than that of credit cards for merchants that accept these payments.

Johnson commented about that:

“We pay a processing fee for credit cards, and we employ about 40 people in our fraud department. That’s a cost of doing business with credit cards. When we take cryptocurrency, we have a very small transaction fee with Coinbase, much smaller than our credit card processing fee, and we have no fraud prevention department. It’s like a cash transaction. For us, that is a much cheaper way of doing business.”

Johnson commented also that Overstock has between $68,000 and $120,000 in weekly cryptocurrency revenues, according to usethebitcoin.com. However, the fluctuation of the amount is justified by the market volatility.

Lastly, Johnson noted that the crypto market has changed how investors participate and invest in the market.

“Today, so many of us can’t participate in the capital markets the way accredited investors or well-connected investors can. And those of us that are trying to raise money have a hard time crowdfunding or raising money in a democratized way.”

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