In an interview with Yahoo! Finance, Scott Cutler, eBay America’s senior vice president has declared that the company is “seriously considering” integrating Bitcoin as a payment method within the $39 billion e-commerce platform.
In a similar move over the past 12 months, Overstock saw its stock price increase by over 130% after they announced the latest involvements in the Blockchain technology and cryptocurrency market. Additionally, other institutions such as Japan’s GMO saw their stock price increase after they revealed that they would integrate Bitcoin within their services.
As the total market valuation of Bitcoin has recently exceeded $500 billion, institutions driving the adoption of Bitcoin also include financial companies such as Goldman Sachs, who also announced that they are moving to adopt the latest technological revolution and that they will clear Bitcoin Futures on behalf of their clients.
Cutler mentioned during the interview that “we’re not quite there yet”, but that they are trying to keep up with the latest trends in finance.
Transaction fees are very high
Bitcoin Fees shows that the fastest and cheapest transaction fee at the moment is 3600 satoshis / byte, which is equivalent to $13 per transaction. We know that the transaction fees depend on the size of the mempool, but the size of this mempool has consistently stayed above 110 million bytes over the past few days.
Additionally, new users signing up on eBay are unlikely to consider this aspect and come up with an optimal ratio of satoshi and byte-based fee, which means that they would also be unlikely to pay for items with a fee larger than $10.
High transaction fees have previously turned to be an issue for Bitcoin as Steam has temporarily disable its integration of Bitcoin.
An important aspect that these companies and platforms are taking into account is the integration of secondary layer solutions once they are ready to work on a large scale, such as Lightning Network. This second-layer scaling requires Segregated Witness (SegWit) to operate and the adoption rate of SegWit is still less than 10%.