Google Will Allow Crypto Payments With New Coinbase Deal

Google Will Allow Crypto Payments With New Coinbase Deal

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  • Google and Coinbase have signed a deal that will see Google accept cryptocurrency for some cloud computing customers
  • It’s a move that will allow Google to keep track of crypto and Web3 developers that want to use cryptocurrency as a payment method
  • Coinbase will receive a percentage of these payments and will allow them to continue to diversify away from revenue based on trading volume.

While Google’s Cloud Next conference may not draw as crowds as Apple’s annual presentation or even Tesla’s AI Day, there were some interesting developments coming out of this year’s event.

Since Google is now one of the powerful companies in the tech industry, it may come as a surprise to some that they are planning to start accepting cryptocurrencies as payment for some of their cloud computing services.

They will rely on Coinbase to facilitate these transactions, which are expected to be operational in early 2023.

This is likely to be a huge boon for both companies as they look to expand their offerings and diversify their business models. For Google, it gives them access to the fast-growing companies operating in the Web3 space, which many still believe has great potential despite recent hiccups.

From Coinbase’s perspective, it will provide them with a revenue stream that is not directly related to trading volumes. This is vital to the stability of the company, which recently laid off more than 1,000 employees as a result of lower trading volumes due to the crypto winter.

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What we know about the deal

Google’s cloud computing business is seen as a key factor for its future success. This sector is growing all the time, which is very profitable and allows them to diversify their revenue away from advertising.

This deal with Coinbase allows Google to fill a gap in the market by allowing companies in the crypto space to pay for cloud storage using digital currency. Currency There are no major competitors allowing companies to do so.

It’s a big deal because upholding the philosophy of many crypto companies and Web3 is a core philosophy that wants to move away from using fiat currencies like the US dollar. Given the opportunity, many of these companies will choose to use services that allow payments in cryptocurrency, but at the moment they are not on the required scale.

The show will not be widespread at first. Google plans to offer the service to a select number of Web3 customers whose payments will be routed through Coinbase Commerce. This platform accepts ten different cryptocurrencies which include all the names you would expect like Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and yes, even Dogecoin.

So for Google, it’s letting them make an offer they don’t currently have the ability to, which will expand their user base and increase revenue. For Coinbase, they will charge a percentage of the fees that go through their platform and they will intend their revenue stream to go away from the retail trading fees.

It’s similar to the way any other payment provider works, be it Apple Pay, Amazon Pay, or even Visa and Mastercard. All of these networks operate by taking a small percentage as payment to facilitate the transaction.

The only difference here is that these transactions are denominated in cryptocurrencies rather than fiat currencies.

Future plans for cryptocurrency are on the table

This may just be the beginning of Google’s entry into the world of crypto and web 3. They also mentioned as part of the new partnership, that they plan to look into how they can get involved in helping other organizations manage their crypto wallets.

This is still an area in its infancy, but hardcore Bitcoin clients believe that over time we can expect to see more and more companies holding Bitcoin on their balance sheet. So far, this strategy has been adopted limited to a small number From major companies including Tesla, Coinbase, Microstrategy, Block and Riot Blockchain.

The challenge for these companies is how to store these assets. Traditional finance relies on trusted intermediaries to hold assets on behalf of the company. Companies like Amazon, Apple, and Microsoft have billions of dollars in cash at any given time, and this is kept in accounts with major banks like JP Morgan Chase, Goldman Sachs, and Bank of America.

These institutions are highly regulated and trusted, which means companies can expect their funds to be safe. Things get a little complicated with encryption.

Digital currencies are, by definition, decentralized. This means that no trusted third parties are required to facilitate transactions and in general the burden on the security of the assets lies with the owner.

There are options available, such as holding assets on stock exchanges, but this sector has been notorious for several notable crashes as investors lost millions.

Like the gap in payment services that Google is looking to fill, there is a potential opportunity to include a trusted third party in cryptocurrency storage. Ironically, Bitcoin was created to avoid this entirely.

Coinbase already offers a service that facilitates this through a program known as Coinbase Prime. It will be interesting to see if Google decides to push this service and if it will entice more conservative organizations to dip their toes in the crypto waters.

The fight for cloud market share

Cloud computing has become the next major battlefield in big tech. The industry has grown tremendously in recent years and continues to do so It is now worth a combined $203.5 billion. Cloud computing is an IT service that allows companies to offer resources such as data storage on a leasing model primarily.

In essence, it works exactly the same way as the iPhone cloud or Google Drive. By offloading your photos or documents to Apple or Google servers, it means you can still access your files without increasing the storage space on your phone or laptop.

For companies, it’s the same. Instead of having to build huge server rooms to store all their data, they can simply rent more and more storage from their cloud computing provider as they grow. This means they don’t need to pay for storage they don’t need yet, and they can expand quickly as their business grows.

It is a profitable business and the list of companies that dominate the market share of the cloud computing space are the ones in Silicon Valley.

Amazon Web Services is the dominant player with 34% of the market, followed by Microsoft Azure with 21% and Google Cloud with 10%. Alibaba, IBM, Salesforce, Tencent and Oracle make up an additional 17%.

This growth is expected to continue, with some reports suggesting that the industry could be worth $1,143 billion by 2028. This is a compound annual growth rate of 15% annually.

What does that mean for investors?

This is another example of the innovation potential of the technology industry. As long as technology continues to evolve and evolve, companies will find new services to offer and efficiencies to share that will generate new sources of revenue.

Cloud computing is still relatively new and yet it is now an industry worth over $200 billion.

It’s one of the reasons why the tech industry is an attractive investment. This doesn’t make it easy though. The sector has seen a huge amount of volatility lately, and one of the hallmarks of the industry is the ability for new players to come in and disrupt the status quo.

Picking stocks in any industry can be difficult, but in technology, it is even more difficult. That’s why we created a file emerging technology group. This investment toolkit uses the power of AI to predict the most attractive sub-sectors within big tech, and rebalance across these sectors each week.

These four sectors are large-cap technology companies, smaller technology companies, technology ETFs, and cryptocurrencies via public trusts. This gives investors the opportunity to learn about the best in the technology industry, with the power of artificial intelligence driving investment decisions.

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