In a move that is causing a buzz in financial circles, Overstock.com just became the first major online retailer to accept bitcoin as a means of payment on their website. A partnership with Coinbase, the San Francisco-based bitcoin currency exchange company, made it possible. Coinbase is taking the lion’s share of the risk in the agreement with Overstock. Before an Overstock customer makes a payment in bitcoins, Coinbase sets an exchange rate, immediately converts the buyer’s bitcoin into dollars, and transfers the dollars to Overstock. So Overstock never holds any bitcoin.
Why would a tiny company like Coinbase take such a risk? Emily Change on Bloomberg Television’s “Bloomberg West” interviews Coinbase CEO, Brian Armstrong in the video below.
To learn more about how you can participate in my bitcoin economy business venture, go to “What is Bitcoin“.