CRYPTOCURRENCY

Cryptocurrency Is Coming To Google

By: James Flippin · October 12, 2022 · Reading Time: 3 minutes

Google Picks Coinbase

Google parent Alphabet (GOOGL) recently announced a partnership with Coinbase (COIN) that will allow the tech giant’s customers to pay for cloud services in cryptocurrency. The feature is expected to launch by early 2023. At the same time, Coinbase announced that it will be moving data-related applications from Amazon Web Services (AMZN) over to Google’s cloud.

The partnership with Coinbase will allow Google customers to pay with 10 cryptocurrencies, which currently includes Bitcoin (BTC), Bitcoin Cash (BCH), Dogecoin (DOGE), Ether (ETH) and Litecoin (LTC).

Coinbase was selected as Google’s primary partner over rival payment company PayPal (PYPL).

Beating Out Amazon

While this partnership is huge for Coinbase, it’s also a massive win for Google’s cloud division, after it successfully lured Coinbase away from Amazon Web Services.

Google Cloud is one of the fastest-growing segments within Google and currently makes up 9% of its revenue. Google is a behemoth of a company but arguably lacks revenue diversification — the overwhelming majority of its revenue comes from ads. Growing its cloud division is of massive importance in order to diversify, and is therefore a big priority for Google.

The biggest problem with growing its cloud division is that the cloud services market is currently dominated by Amazon Web Services. AWS has a multi-year head start on other companies and, additionally, cloud computing is a very sticky business.

For large companies, switching cloud providers is time-consuming, risky, and distracting. This makes them more inclined to stay with their current provider. The fact Coinbase bucked that trend and made the switch underscores how this is a huge win for Google.

Paying With Crypto

The global economy continues to adopt cryptocurrency in new ways. Crypto has gone from being a small, niche project with a cult following to something that the world’s largest companies want to get involved in.

Additionally, the fact that Google is implementing technology to let its users pay in crypto may speed up the adoption of digital assets. Since Google Search directs 92% of the internet traffic, the move means that the bulk of internet users could be exposed to crypto payment services. And while users will only be able to pay for cloud services right now, it’s possible that payment options could expand over the coming years.

For the user, this partnership hopefully means that you’ll be able to enjoy all the benefits of crypto like instant transactions and global payments. Iin the short term, it’s important to remember that cryptocurrency prices are still incredibly volatile. Bitcoin, the world’s biggest crypto, is down 60% this year.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS22101201

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status and and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, years of professional experience, income, and a variety of other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Financial Protection and Innovation under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp. or an affiliate, NMLS # 1121636. (www.nmlsconsumeraccess.org)

✝︎ To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

©2024 Social Finance, LLC All rights reserved.
TLS 1.2 Encrypted
Equal Housing Lender