Earlier this week, Newegg.ca joined TigerDirect in allowing Canadians to pay in Bitcoin. Newegg customers from Canada, and soon America, can save 30% if they pay in Bitcoin, up to a $150 discount. The limited-time discount of 30% discount right off the bat is an abnormally generous offer that is simply not possible with credit cards, Visa.me, Paypal, etc. Another interesting point about this release is that Newegg has followed the release schedule of TigerDirect almost to the dot, though their discounts are a hell of a lot deeper. Like Newegg, TigerDirect first announced Bitcoin acceptance only within the United States then weeks later opened their offering to Canadians. Now that Newegg is receiving international Bitcoin money, hopefully they will release concrete data on their Bitcoin campaign for others to see. It is expected that their Bitcoin revenue pulled in will exceed TigerDirect’s initial run of $1,000,000.
Bitcoin is Meant for International Markets
News of companies such as Newegg, Overstock, Dell, DISH, and TigerDirect accepting bitcoin is actually a bittersweet concoction every time it is presented. Few offered their acceptance of bitcoin in countries outside of America from the get-go. It is only weeks later that Canadians get their turn, with other countries’ residents still waiting for their turn. Though each company can deflect to implementation delays and trial periods, the simple truth is that they could have started with accepting Bitcoin from every corner of the world.
Most of these large companies that now accept bitcoin are all American companies that presumably do their accounting in USD. Companies that accept Bitcoin and have a web-facing market should accept Bitcoin from everywhere, especially since they all use services such as BitPay and Coinbase which allow said companies to receive USD no matter where the bitcoins were sent from. One of the most salient features of the Bitcoin protocol is that bitcoins sent from New York are just as good as bitcoins sent from Shangrila. The same cannot be said about merchant preference for credit card numbers originating in Zimbabwe, Argentina, or the United States. With Bitcoin ATMs being launched all over the world, Bitcoin accessibility is easily at an all-time high, so too is its usefulness.
But Only One Step at a Time
The way that large Bitcoin-accepting companies have structured their acceptance of Bitcoin, splitting it into two or three distinct parts instead of embracing the aggregate offering at once, is a direct result of PR pressure. With few companies revealing the exact amount of money saved, or bitcoins hoarded, or Bitcoiners served, it is hard for the community, or rival companies, to properly measure precisely the positive financial and publicity impact from announcing Bitcoin acceptance. Instead, all anyone sees are the news headlines. By starting off only accepting Bitcoin in America, companies such as Newegg are able to get free press coverage and a sales boost from the Bitcoin community twice. On the other hand, a 30% discount is a great way of saying, “sorry for the delay,” to Canadian Bitcoiners. Americans only got a 10% discount
Update: Newegg’s 30% Bitcoin deal will be available to Americans for Labor Day weekend.