Big bitcoin-friendly companies like Microsoft and Expedia hedge their bet

Big #bitcoin-friendly companies like Microsoft and Expedia hedge their bet @ewolffmann

  • Though a precious few may be transacting in bitcoin, many big companies like Overstock, Microsoft, Dish, and Expedia., still offer to accept it.
  • A spokesperson for Microsoft told Yahoo Finance that the company does not actually take possession of bitcoin directly but instead can use bitcoin via an exchange to add money (in U.S. dollars) to a customer’s Microsoft account.
  • The company uses Coinbase’s instant exchange feature to convert all bitcoin transactions into U.S. dollars.
  • Like Expedia, Dish (DISH) also uses Coinbase’s exchange feature to settle payments made in bitcoin into U.S. dollars for a “low, but steady” group of customers.
  • With the exception of Overstock, these companies take a conservative angle with the cryptocurrency, which is unlikely to change unless bitcoin stabilizes and turns into a more usable and predictable currency.

Here’s how the biggest companies deal with bitcoin risk — avoid it for now. Except for one, which has doubled down.

Businesses that accept bitcoin have a unique problem: How do they deal with the currency’s wild fluctuations?

This year has marked bitcoin as an investment more than a usable currency, the new disaster hedge alongside gold. With values surging close to $5,000 at its peak thus far — though it’s dipped of late — almost no one wants to buy anything with it, lest it rises further and stabilizes.

Though a precious few may be transacting in bitcoin, many big companies like Overstock, Microsoft, Dish, and Expedia., still offer to accept it.

Overstock’s CEO Patrick Byrne has been a big proponent of the cryptocurrency over the years and ushered in mainstream bitcoin acceptance by bringing it to Overstock’s checkout screen. As a bitcoin bull, Byrne has always kept some bitcoin that came in from sales, he told Yahoo Finance in August, and has increased that percentage to 50% of late.

Overstock’s strategy, however, is unique amongst big companies that accept bitcoin. A spokesperson for Microsoft told Yahoo Finance that the company does not actually take possession of bitcoin directly but instead can use bitcoin via an exchange to add money (in U.S. dollars) to a customer’s Microsoft account. That account then can be used to buy stuff from digital stores. “Any currency fluctuation risks are managed by the exchange,” the company said.

Like Microsoft, Expedia…

Big bitcoin-friendly companies like Microsoft and Expedia hedge their bet