Shoppers Using Bitcoin Spent $126,000 On First Day Overstock.com Accepts It

bitcoinwhatmbIn what might be a sign that bitcoin isn’t just a mystical, ethereal currency to be hoarded like a magic pot of gold but never spent, Overstock.com says it did $126,000 in sales on the first day it started accepting it. Which means people spent it to buy everyday items instead of big purchases like a Tesla Model S.

Wired.com points out that while $126,000 doesn’t sound like much, it’s an important step for the currency as it tries to bridge the gap between something people squirrel away as an investment, and an everyday currency used to buy actual stuff.

In the first 22 hours, Overstock.com says it accepted about 800 orders in bitcoin, with $5,000 worth of those orders happening in the first 30 minutes alone.

So what were people buying? One guy who’s been using bitcoin since March of last year says he just wanted to see if the new system worked and signed on to buy a new case for his smartphone. He adds that he wants to support bitcoin so that it actually thrives in the real market.

“It’s a concept that could take off, and should take off, for a lot of reasons,” he says. “I want wider adoption. I want more businesses to use it.”

With Overstock.com’s announcement it’s likely that other retailers might start thinking about following suit. After all, if there are shoppers out there with money to burn, no matter what form it takes, retailers will want a piece of that action.

“So far I have not regularly bought stuff with bitcoin, although I am beginning to change that behavior,” another shopper said of his Overstock.com experience. “The increasing price of bitcoin is definitely an obstacle to purchasing bitcoin, but a temporary one.”

Hear that sound? It’s the perking of ears as online retailers hear “I want to spend my money and just need somewhere to spend it.”

In First Day With Bitcoin, Overstock Does $126,000 in Sales [Wired.com]

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  1. CommonC3nts says:

    Overstock is going to get really screwed in this.
    People made bitcoins virtually for free on their computers or their college servers and found that it is not easy to sell them for lots of money.
    The reason people are buying things on overstock like crazy is because its an easy way to get rid of them at top dollar with no % fees.

    Now overstock is in a bind as now they have to find people willing to trade them USD for the bitcoins. I dont think its going to work out for them.

    • furiousd says:

      Really?

    • Diviance says:

      Actually, Overstock doesn’t really accept bitcoin. They accept USD from Coinbase who accepts bitcoins from customers. Overstock doesn’t touch bitcoin itself, something conveniently overlooked by bitcoiners.

      However, where Coinbase is getting their surprising amount of funds is almost certainly very sketchy, if not outright from an illegal source. I would not be surprised at all to find they have a connection to some kind of criminal underworld group laundering money.

      For the people that have bitcoin they can’t get rid of, this is a good thing (now they can somewhat reliably get rid of it, until either Coinbase runs out of cash or we find out they are getting their money from illegal sources and get shutdown). For people who do not already have bitcoin, it costs less and is more convenient to continue using credit cards to purchase from them.

      You know, assuming anyone actually still does buy from them.

      $126,000 is like 0.00011% of the daily income for Wal-Mart. It is nothing.