Online giant Newegg accepts Bitcoin formula

In a statement by Managing Director Soren Mill, the company explained that the Bitcoin fits well as a payment option, especially as customers have an early adopter mentality:

was hungrily awaited. The Los Angeles-based company, which has revenues of $2.8 billion in 2013, today announced the launch of Bitcoin. The company will use BitPay as its payment processor. The Bitcoins received will be exchanged directly into USD.

In a statement by Managing Director Soren Mill, the company explained that the Bitcoin fits well as a payment option, especially as customers have an early adopter mentality:

“The Newegg customers are among the early Bitcoin miners and they are enthusiastic supporters of the digital currency. The acceptance of Bitcoin is a further step towards meeting the needs of our customers”.

Great demand for Bitcoin formula integration

For months now, Newegg has been talking about Bitcoin formula integration. Various Twitter “teasers” have already pointed to Bitcoin integration in the past. Here is the review about the Bitcoin formula.

“Our customers have asked us on Facebook Twitter & Co. whether we don’t want to integrate Bitcoin,” says Mills. “Months before the integration, we spent a lot of time clarifying legal and strategic issues to ensure a smooth process.” Mills says.

Online trading has been slowly opening its doors to Bitcoin since last year. Competitor Tiger Direct has been accepting the digital currency since January of this year, following Shopify, which Bitcoin introduced in November 2013. Overstock.com, also a giant in online trading, has been accepting Bitcoin payments since January 10th.

Increasing acceptance

Overstock’s Bitcoin sales figures look better than some expected. By March, the company had already raised $1 million in Bitcoin and expects the figure to rise to $20 million in Bitcoin by the end of the year. The popularity of Bitcoin as a means of payment was a big surprise for many. Even for overstock managing director Patrick Byrne.

Newegg itself expects an increase in sales figures for certain product segments with the introduction of Bitcoin as a means of payment. Especially Bitcoin Mining Hardware, which ultimately led to Bitcoin acceptance, will increasingly be paid for in Bitcoin.

Mills explains:

“We already offer our customers many components that are used for Bitcoin Mining. These include special graphics cards, mainboards and coolers.

Such large companies as Newegg and Tiger Direct will help to stifle the two biggest criticisms of Bitcoin as a means of payment in the sand.

One of the points is that the blockchain is said not to be able to handle such large transaction volumes. The second point of criticism is that payment processors like BitPay or Coinbase may not be able to handle the price fluctuations with such large amounts.

“After we brought BitPay on board and set up the payment process, everything went very quickly,” says Mills.

Fast growing market
Forbes lists Newegg as the 172 largest private company in the USA. The company was founded in 2001 and employs 2,600 people. Since its founding, the company has consistently been profitable and profitable.