Cloud computing is quickly becoming one of the most popular business models among the who’s who of Silicon Valley and the tech world at large.
With the industry showcasing remarkable growth worth a combined $203.5 billion, Google and Coinbase recently entered a partnership that will allow Web 3 companies to pay for Google’s cloud computing services using crypto.
Google’s cloud computing business has emerged as a critical factor for the company’s growth in recent years. As a result, financial analysts now see the subsidiary as having “tremendous upside potential.”
The partnership with Coinbase will enable Google to tap into the $1.2 trillion crypto market and get a foothold in the emerging Web 3 ecosystem.
Under the terms of the agreement, Coinbase will process the crypto payments on Google’s behalf. The move is a surprise because, until now, the search engine giant has been lukewarm towards cryptocurrencies.
The partnership is a win-win for both companies. For Coinbase, it gives the company an alternative revenue source to trading commissions, which have been under pressure due to the prolonged bear market.
On the other hand, Google gets access to a new customer base passionate about crypto and blockchain technology.
The deal could lead to more mainstream adoption of cryptocurrencies and help Google catch up to Amazon in the cloud computing race. Amazon still dominates the market, but Google is quickly gaining ground.
The partnership is a big step forward for the crypto industry and further validation that cryptocurrencies are here to stay. It also highlights the growing trend of major tech companies embracing crypto and blockchain technology.
The Future of Crypto Payments
Crypto payments are still in their early days, but the Coinbase-Google partnership is a big step forward for the industry.
The deal could pave the way for other tech giants to accept crypto payments. Amazon, Microsoft, and Facebook are all likely candidates.
Accepting crypto payment in cloud computing can also legitimize cryptocurrencies as a viable payment method.
The trend is already starting to catch on. Over the past year, we’ve seen several major players start accepting crypto payments, including Shopify, NewEgg, and Overstock.
Moreover, big tech companies such as Tesla have ventured into crypto by adding Bitcoin to their balance sheets.
With the Coinbase-Google partnership, we are one step closer to a future where crypto payments are the norm.
Existing Challenges to Crypto Adoption
However, various challenges, such as high transaction fees and price volatility, are still in the way.
Bitcoin, in particular, had dropped sharply from an all-time high of over $65,000 in November 2021 but then dropped to as low as $18,000 earlier this year.
These wild price swings make it difficult for businesses to accept crypto payments because they need to be able to account correctly for the losses or gains.
Nonetheless, the trend is moving in the right direction. Ethereum’s merger with Ethereum 2.0 is an essential step towards tackling the high transaction fees and scalability.
Also, with the shift from Proof of Work to Proof of Stake, Ethereum’s network is set to establish the foundation for a more scalable and sustainable future of cryptocurrencies.
Conclusion
The Coinbase-Google partnership is a big win for both companies and the entire crypto industry. As expected, the move signals Google’s renewed interest in the digital currency space and its potential as an emerging asset class. For Coinbase, the partnership validates its position as a leading digital currency exchange and wallet provider. This deal also underscores the growing mainstream adoption of digital currencies.
