NEW YORK (TheStreet) - Overstock.com (OSTK) CEO Patrick Byrne expects that over time, there will be a derivatives market for Bitcoin so commercial end-users such as retailers can hedge their risk. Byrne also said he expects Amazon (AMZN) to eventually accept Bitcoin.
As adoption and the market for Bitcoin transactions deepens, Byrne expects retailers like Overstock may be able to insulate themselves from exchange risks of the volatile currency. He expects that there will eventually be a derivatives market for commercial-end users so they can hedge their price risk.
For now, Overstock has avoided many of the issues plaguing the virtual currency given its partnership with Coinbase.
In an interview with TheStreet on Tuesday, Byrne said Bitcoin will become too big of a market for Amazon to cede entirely to competitors such as Overstock.com. Byrne also said that after announcing $1 million in Bitcoin sales, he now forecasts that Overstock will process up to $15 million in Bitcoin transactions this year.
Overstock began offering customers a way to pay for goods on the e-commerce website with Bitcoins in mid-January, becoming the first online retailer to accept the virtual currency.
The Salt Lake City-based company partnered with Coinbase.com, a start-up backed by venture capital firm Andreessen Horowitz. Overstock doesn't currently accept Bitcoin payments directly, but instead uses Coinbase.com to accept Bitcoin payments on the company's behalf, and then immediately converts those Bitcoin payments into U.S. dollars. As a result, Overstock receives payment for products it sells at a price in U.S. dollars.