Will Shopify’s New Cryptocurrency Partnership Widen Its Moat?

Will Shopify’s New Cryptocurrency Partnership Widen Its Moat?

Shopify’s (NYSE:SHOP) platform allows its merchants to accept payments in bitcoin, Litecoin, Ethereum, and over 300 other types of cryptocurrencies. It recently expanded that reach by partnering with cryptocurrency payments processor CoinPayments, which helps merchants process 1,800 types of cryptocurrencies.

Shopify claims the partnership will “make cryptocurrency transactions easier and more accessible while reducing transaction fees.” CoinPayments CEO Jason Butcher declared the partnership would deliver a “seamless process for anyone looking to do business using cryptocurrencies.”

CoinPayments has processed over $5 billion in cryptocurrency payments since its founding in 2013 and provides clients with various APIs, shopping cart plugins, and digital wallets. Shopify’s cryptocurrency expansion isn’t surprising, but will this new partnership widen its moat?

Physical bitcoins on top of a smartphone.

Image source: Getty Images.

Cryptocurrencies like bitcoin have gained a lot of attention among speculators in recent years. However, the broad price swings — which have ranged from about $500 to $19,000 for bitcoin over the past four years — made them tough to accept as mainstream payments.

Last year, a survey by the Foundation for Interwallet Operability (FIO) found that only 30% of cryptocurrency owners actually used the coins for payments. The vast majority held the coins as investments. A more recent survey by the Economist Intelligence Unit and digital payments platform Crypto.com found just 34% of cryptocurrency users primarily used digital currencies for online payments.

Crypto Radar recently claimed 6.2% of Americans owned bitcoin, and 7.3% planned to buy some in the future. Yet the overwhelming majority (64.8%) didn’t own any bitcoin and had no plans to buy any coins in the future. Another 21.8% hadn’t even heard of bitcoin.

Those percentages indicate cryptocurrency payments don’t appeal to mainstream shoppers yet. Nonetheless, many major companies — including Microsoft, AT&T, and Expedia — already accept bitcoin payments, though it’s unclear how many customers actually choose those options.

Shopify also recently joined the Facebook (NASDAQ:FB)-led Libra Association, which wants to serve underbanked markets with its Libra cryptocurrency. That decision was surprising, since Libra had already lost many of its top members after regulators opposed its development.

Piles of physical bitcoins on a mirrored circuit board.

Image source: Getty Images.

However, Libra is being developed as a “stablecoin” which is pinned to fiat currencies instead of mining algorithms. That stability could make Libra a more viable payment option than bitcoin and other volatile cryptocurrencies, and tethering them to Facebook’s Calibra digital wallet, Messenger, and WhatsApp could quickly expand its reach.

CoinPayments also processes payments in other top stablecoins like TrueUSD, USD Coin, and Gemini Dollar (GUSD). These currencies could be more appealing to merchants and shoppers, who can sleep easier knowing the value of their payments won’t plummet or skyrocket overnight.

Shopify’s partnerships with the Libra Association and CoinPayments could pivot its merchants from bitcoin toward less volatile cryptocurrencies. That process might be glacial and won’t move the needle anytime soon, but it could enhance its broader platform — which already serves over a million businesses in more than 175 countries.

Shopify’s cryptocurrency partnerships should also widen its moat against Adobe’s (NASDAQ:ADBE) Magento, which recently partnered with cryptocurrency payments platform Utrust to provide its crypto transactions to over 250,000 merchants. Magento is arguably Shopify’s toughest competitor since it’s tightly integrated into Adobe’s other cloud-based analytics, marketing, and advertising tools.

The cryptocurrency market remains a niche one, but it could still grow from $1.03 billion to $1.4 billion between 2019 and 2024, according to Markets and Markets. Shopify probably doesn’t expect cryptocurrency payments to overtake traditional payment methods anytime soon, but it also doesn’t want to be left behind a crucial tech curve. If top cryptocurrencies like bitcoin stabilize and stablecoins gain ground, Shopify’s recent partnerships could widen its moat against Adobe and other rivals while planting the seeds for future growth.

Source: www.fool.com

Author: Leo Sun


Cryptocurrency expert sees opportunities amidst global crisis

Cryptocurrency expert sees opportunities amidst global crisis

The coronavirus pandemic has ruffled the feathers of global capital markets this year, causing the biggest crash in stock market indexes since the 2008 financial crisis while the likes of oil, and even cryptocurrencies, have fallen to gruelling lows.

And while this has caused understandable panic amongst traders and funds, it has presented a number of key investment opportunities moving into the second half of the year.

According to Don Guo, CEO of Broctagon Fintech Group, there are a few factors to consider when assessing an investment in 2020.

He’s stated these include: “How long lockdown is likely to continue, new traders entering the market, demand for different types of assets and products and the possible impact of inflation on the markets.”

Guo continued: “While volatility continues there will be a plethora of cheap stocks and cryptocurrencies to choose from, as well as lower transaction costs. This won’t last forever, history shows us that recovery tends to be quick, and some countries are already beginning to relax lockdown measures.”

He also notes that as much of the world have either been furloughed or forced to work from home, an influx of new investors may enter the market, which could in turn peak interest in digital assets.

“As quantitative easing kicks in and inflation increases, crypto could also see an uptick in investor interest.” He added.

“With governments are forced to flood more fiat into the system to support businesses during the crisis, investors could turn increasingly to cryptocurrencies, which for the most part aren’t as reliant on government action. Should this trend continue, we could see bitcoin prices skyrocketing by the end of 2020, meaning those who had invested sensibly can use it as a hedge against the inflation of traditional currencies.”

And while Guo reiterates that nothing will recover in a “straight line” a lot of institutional investors will be sizing up opportunities as a result of relatively low prices across the board.

For more news, guides and cryptocurrency analysis, click here.

Disclaimer: This is not financial advice.

Source: coinrivet.com

Author: Oliver Knight

May 26, 2020


Cryptocurrency Market to Reach USD 1,758.0 Million by 2027; Modifications in Virtual Currency Methods to Spur Business Opportunities, states Fortune Business Insights™

Cryptocurrency Market to Reach USD 1,758.0 Million by 2027; Modifications in Virtual Currency Methods to Spur Business Opportunities, states Fortune Business Insights™

Pune, May 26, 2020 (GLOBE NEWSWIRE) — The global cryptocurrency market size is predicted to reach USD 1,758.0 million by 2027, exhibiting a CAGR of 11.2% during the forecast period. The growing inclination of individuals in developed countries towards virtual currency exchange methods will have a tremendous impact on the market during the forecast period. The integration of blockchain technology in cryptocurrency for fast, secure and effective transactions will bolster healthy growth of the market in the forthcoming years, mentioned in a report, titled “Cryptocurrency Market Size, Share and COVID-19 Impact Analysis, By Component (Hardware, Software), By Type (Bitcoin, Ether, Litecoin, Ripple, Ether Classic, Others), By End-use (Trading, E-commerce and Retail, Peer-to-Peer Payment, and Remittance), and Regional Forecast, 2020 – 2027 ”, the market size stood at USD 754.0 million in 2019.

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An Overview of the Impact of COVID-19 on this Market:

The emergence of COVID-19 has brought the world to a standstill. We understand that this health crisis has brought an unprecedented impact on businesses across industries. However, this too shall pass. Rising support from governments and several companies can help in the fight against this highly contagious disease. There are some industries that are struggling and some are thriving. Overall, almost every sector is anticipated to be impacted by the pandemic.

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Market Driver:

Rising Popularity of Digital Currency to Augment Growth

The rising trend of cryptocurrency has led to the acceptance of digital coins such as Bitcoins, Litecoins, Ethers, and more. The easy and flexible transactional method offered by cryptocurrency has facilitated the Central Bank Digital Currency (CBDC) activity provisions across the world. For instance, Bank of Thailand and Central Bank of Uruguay have applied for the toolkit to its CBDC evaluation process. The toolkit delivers a guide for the countries to make progress quickly and analyse CBDC as an exchange medium.  Furthermore, the increasing investment in blockchain and cryptocurrency by major companies will enable speedy expansion of the market. For instance, in October 2018, Qtum Chain Foundation, an open-sourced blockchain application platform based in Singapore announced a partnership with Amazon Web Services (AWS) China to deploy blockchain systems on the AWS cloud. The partnership will allow help AWS users to use Amazon Machine Images (AMI) to develop and publish smart contracts easily and efficiently. Also, the introduction of unique digital currencies by eminent companies will influence the market positively in the foreseeable future. For instance, in June 2019, Facebook, Inc. announced the launch of a digital currency named Libra. Libra will enable customers to buy things or send money to others and cash out Libra online or at grocery shops.

Market Restraint:

Raging Coronavirus to Sway Market Potential

The outbreak of COVID-19 has negatively impacted the global economy. The regression in the stock market has directedly created concerns for the bitcoins. For instance, 12 March 2020, the price of Bitcoin fell below USD 4,000 after a sharp decline in the S&P Index in the U.S. The market crash has incited an increase in investment capital by blockchain companies to compensate for the losses. Giant blockchain analytics, Elliptic, Chainalysis, and CipherTrace declared that they have cut-price and reduced staffs or intend to do so in the immediate future to lessen the economic effects of the coronavirus pandemic. For instance, CipherTrace has decreased the jobs of the advertising and marketing departments. Whereas Elliptic has eliminated 30% of the workers in the U.S. and the U.K and Chainalysis has planned to reduce employees’ wages by 10% to mitigate the risks.

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Regional Analysis

Existential Players to Promote Growth in North America

The market in North America stood at USD 250.9 million in 2019 and is predicted to proliferate in the forthcoming years. The growth in the region is attributed to the rising popularity of bitcoins in the US. The presence of major eminent players will foster growth in the region during the forecast period. Asia Pacific is expected to witness significant growth during the forecast period owing to the technological developments and acceptance of virtual currency in Japan. The growing collaborations among key players will significantly boost the cryptocurrency market growth in Asia Pacific. For instance, in January 2020, Z Corporation, Inc. and TaoTao, Inc. announced a joint venture with the financial service agency to expand its presence by confirming regulatory compliance in the Japanese market.

Key Development:

January 2020: Binance, a cryptocurrency exchange company that provides a platform for trading various cryptocurrencies announced the acquisition of WazirX Bitcoin exchange based in Mumbai, India. With this acquisition, Binance will be able to expand its business portfolio in India.

List of the Key Companies Operating in the Cryptocurrency Market are:

  • Binance.com. (Malta)
  • Bitfury Group Limited (The Netherlands)
  • BitGo, Inc. (United States)
  • Bitmain Technologies Ltd. (Saint Bitts LLC) (China)
  • Coinbase (United States)
  • CoinDesk.com (United States)
  • Intel Corporation (United States)
  • Ripple Labs, Inc. (United States)
  • Xilinx (United States)

Quick Buy – Cryptocurrency Market Research Report: https://www.fortunebusinessinsights.com/checkout-page/100149

Detailed Table of Content

  • Introduction
    • Definition, By Segment
    • Research Approach
    • Sources
  • Executive Summary
  • Market Dynamics
    • Drivers, Restraints, and Opportunities
    • Emerging Trends
    • Key Insights
      • Macro and Micro Economic Indicators
      • Consolidated SWOT Analysis of Key Players
      • COVID-19 Impact Analysis
      • Global Cryptocurrency Market Analysis, Insights and Forecast, 2016 – 2027
        • Key Findings / Summary
        • Market Size Estimates and Forecasts
          • By Component (Value)
            • Hardware
              • FPGA
              • ASIC
              • GPU
              • Others (Paper Wallet, Web Wallet, etc.)
              • Software
                • Mining Software
                • Exchanges Software
                • Wallet
                • Payment
                • Others (Vaults, Encryption, etc.)
                • By Type (Value)
                  • Bitcoin
                  • Ether
                  • Litecoin
                  • Ripple
                  • Ether Classic
                  • Others (Dogecoin, Moneor, Dash, etc.)
                  • By End-use (Value)
                    • Trading
                    • E-commerce and Retail
                    • Peer-to-Peer Payment
                    • Remittance
                    • By Region (Value)
                      • North America
                      • Europe
                      • Asia Pacific
                      • Middle East and Africa
                      • Latin America
                      • TOC Continued..!!!

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                        Social Cryptocurrencies

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                        Will Shopify’s New Cryptocurrency Partnership Widen Its Moat?

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