{"id":29215,"date":"2014-02-10T21:44:43","date_gmt":"2014-02-10T21:44:43","guid":{"rendered":"http:\/\/ci027cfe7b301126c3"},"modified":"2025-01-28T20:55:18","modified_gmt":"2025-01-28T20:55:18","slug":"bitcoin-ebitda-micropayments-oh-1392068683","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/technical\/bitcoin-ebitda-micropayments-oh-1392068683","title":{"rendered":"Of Bitcoin and EBITDA and Micropayments, oh my!"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2025\/01\/of-bitcoin-and-ebitda-and-micropayments.png\" title=\"\"><\/figure>\n<p>EBITDA? Micropayments? Bitcoin? What?<\/p>\n<p>EBITDA <em>undefined<\/em> is simply the Earnings that a company has Before Interest, Taxes, Depreciation, Amortization. It is in essence a true representation of a company\u2019s earnings power. How much money did the company make if we only include the products of the company and not any extraneous factors?<\/p>\n<p>The SEC doesn\u2019t recognize EBITDA as an official metric, so in this case we\u2019ll use \u201cnet income\u201d as a substitute. So, in Amazon\u2019s case for the 3 months ending 2013\/12\/31 net income was $510 million on Gross Sales of $25,587 million. If we assume that they pay the industry standard 2 of their sales for merchant services, or in other words, the ability to actually take credit cards, then a 100 conversion of Amazon\u2019s sales to BTC will save them, $25,587*.02=$511 Million. That is money that goes directly to the bottom line. [ii]<\/p>\n<p>In other words: If Amazon fully converted to Bitcoin they would <strong>DOUBLE<\/strong> their profits. I wonder what that would do to the stock price \u2026<\/p>\n<p>Micropayments[iii] are simply small payments. Currently it isn\u2019t profitable to have micropayments. The merchant processors charge not just a fee, but also a transaction fee, which in some cases might run up to $1 or more PER transaction. But Bitcoin doesn\u2019t have that problem. Sending very small amounts of money, while sometimes slow, is essentially, free.<\/p>\n<p>This opens up an HUGE amount of business models that were until now unprofitable. As Max Keiser tweeted about a month ago: \u201cNetfllix is thinking about going BTC.\u201d[iv] This is because it\u2019s unprofitable for Netflix to sell you a movie for a $1. It costs them more than that to process the transaction. But in BTC? EASY. And Netflix is just one example of where micropayments make sense. How about weekly news articles? Can you say \u201cChicago Sun-Times?\u201d[v]<\/p>\n<p>So for all of those who worry about Bitcoin adoption, or who wonder if my future visions of the utility of Bitcoin are a far away dream I show you REAL utility. TODAY. NOW.<\/p>\n<p><em>undefined<\/em> http:\/\/en.wikipedia.org\/wiki\/Earnings_before_interest,_taxes,_depreciation_and_amortization<br \/> [ii]https:\/\/www.google.com\/finance?q=NASDAQ:AMZN&amp;fstype=ii<br \/>[iii] http:\/\/en.wikipedia.org\/wiki\/Micropayment<br \/> [iv] https:\/\/twitter.com\/maxkeiser\/status\/419497007678382080<br \/> [v] http:\/\/www.coindesk.com\/micropayments-chicago-sun-times-paywall-live\/<\/p>\n","protected":false},"excerpt":{"rendered":"<p>EBITDA? Micropayments? Bitcoin? What? EBITDA undefined is simply the Earnings that a company has Before Interest, Taxes, Depreciation, Amortization. It is in essence a true representation of a company\u2019s earnings power. How much money did the company make if we only include the products of the company and not any extraneous factors? The SEC doesn\u2019t [&hellip;]<\/p>\n","protected":false},"author":3657,"featured_media":29214,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[2397,1659,235],"class_list":["post-29215","post","type-post","status-publish","format-standard","has-post-thumbnail","category-technical","tag-amazon","tag-micropayments","tag-taxes"],"author_data":{"id":3657,"name":"David Mondrus","nicename":"david-mondrus","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/12\/system-diy-promo-image-96x96.png"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/of-bitcoin-and-ebitda-and-micropayments.png","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/29215","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/3657"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=29215"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/29215\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/29214"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=29215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=29215"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=29215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}