Amazon's Bitcoin Proposal

U.Today – An intriguing development is happening at Amazon (NASDAQ:AMZN) where some shareholders propose that the e-commerce giant should create a reserve for Bitcoin (BTC). The proposal, submitted by the National Center for Public Policy Research, suggests that Amazon allocate at least 5% of its substantial $585 billion in total assets to Bitcoin.

With $88 billion currently held in cash and marketable securities, shareholders believe these assets are susceptible to inflation and currency devaluation. They are urging the company to explore alternative strategies to preserve and enhance shareholder value.

Performance Metrics

This is not merely speculative; there are tangible performance metrics supporting the case for Bitcoin. Over the past year, BTC has experienced a 131% appreciation, significantly outperforming corporate bonds. Over five years, Bitcoin’s price has surged by 1,246%, highlighting a stark contrast in performance.

Corporate Trends

The proposal emphasizes that companies like MicroStrategy, which have Bitcoin on their balance sheets, have witnessed stock values exceeding Amazon's by over 500% in the last year. Additionally, more institutions are embracing cryptocurrency, with major Amazon investors like BlackRock (NYSE:BLK) and Fidelity offering Bitcoin ETFs.

Accepting Bitcoin as Payment

While the proposal to include Bitcoin in Amazon’s treasury raises concerns regarding volatility, it has sparked discussions about the cryptocurrency’s real-world applications. CZ, the former CEO of Binance, proposed that Amazon could begin by accepting Bitcoin as a payment method.

Some critics argue that Bitcoin isn't ideal for transactions due to slow confirmation times. However, CZ contends that BTC remains reliable even with delays, functioning without intermediaries or approvals—an improvement over conventional financial systems.

Implications for Amazon

For Amazon, adopting Bitcoin could have several implications. Beyond diversifying its asset portfolio, accepting Bitcoin could position the company as a leader in the corporate cryptocurrency space.

This article was originally published on U.Today