You probably heard about the Amazon acquisition of 3 Cryptocurrency related domains. The natural follow up question is of course is Amazon planning to accept Cryptocurrencies and specifically Ethereum soon? and how will this impact Ethereum price? Bullish?
The domains that were purchased by Amazon are the following:
To make it short, our answer is no, this is not necessarily an event that could drive the value of Ethereum up, at max it could for an extremely short window due to rapid speculation, but definitely no long term value for Ethereum holders.
Now to Clarify, we are providing our perspective on the acquisition of the domains only. And these are some of the reasons we believe this is a non event:
- The acquisition of the domains doesn’t necessarily mean that Amazon will use Ether or other Cryptocurrencies. In fact, the purchase might just be a way for Amazon to block certain domains from being used by other entities and leveraging the Amazon brand or cause confusion. Basically, to provide misuse of their name.
- According to this CNBC, article, Amazon has already made a Bitcoin related domain purchase 3 years ago. They haven’t started offering Bitcoin payments yet.
So while it would be very Bullish for Ethereum price if a retail giant like Amazon would use cryptocurrencies and Ethereum as a method of payment, we don’t necessarily see this move as one that could indicate a crypto payment in the cards for Amazon.
This is simply one of those news that look Bullish but are not. And the risk is they might cause greed and investors to chase and buy a cryptocurrency at the Top of the Channel. Something we advise against as securing a good entry when investing or trading Cryptocurrencies is key.
You can read more about Our Ethereum price predictions, support and resistance levels for December 2017 in our latest article: Ethereum Price Important Price Levels To Watch In December 2017.
You can also read here about how we believe the Cryptokitties might have a more important impact on Ethereum price than Amazon registering Cryptocurrencies domains.