We have been discussing and debating whether cryptocurrencies are better than other means of payment, for different reasons. This time, Jonathan Johnson, an important member of the board of directors of Overstock, stated that cryptocurrencies are a much better payment method than credit cards.
Cryptocurrencies are a Superior Payment Method
Overstock is an important online retailer that is based in the United States and it is currently valued around $1 billion dollars.
There is a big important difference between cryptos and credit cards, because while paying with the plastic method, it is possible to request refunds and cancellation for payments. This could create legal problems and different issues that need to be addressed by the different intermediaries involved in the payment process.
But with cryptocurrencies these things cannot happen. Once the payment is done, that’s all. There are no possibilities to request anybody for a refund or to cancel a payment. At the same time, fees are very high for the merchants that accept these payments, and this is something that cryptos could reduce.
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 that Overstock has between $68,000 and $120,000 in weekly cryptocurrency revenues. But the amount of money moved is different every week because of the volatility that the market has.
At the same time, Johnson noted that the crypto market has changed the way in which investors participate and invest.
“Today, so many of us can’t participate in the capital markets the way accredited investors or well-connected investors can. And those of use that are trying to raise money have a hard time crowdfunding or raising money in a democratized way.”