Topic: Dell accepting bitcoin does it make …… (Read 2444 times)

A distinction should be made between merchants that accept Bitcoin directly and keep some or all of their bitcoins without cashing them out and merchants that accept Bitcoin via a third-party payment processor such as BitPay which sells the bitcoins and gives the merchant USD. The former is much rarer and not at all easy to do since the Bitcoin economy is still quite young and undeveloped and the BTC price is still prone to wild swings. The only large, mainstream company that I know of that keeps a portion of their BTC in the form of coins rather than instantly cashing them out is Overstock and even then, it's only a small percentage. Most of it still gets converted to fiat.

The problem with using a payment processor such as BitPay is that selling the coins and exchanging them for fiat creates a downward pressure on BTC's price resulting in lower bitcoin prices. Not a big concern for companies like Dell since they automatically get paid in fiat and never even see the bitcoins (it's the payment processor that handles that) but for us Bitcoiners, it's not 100% ideal.

As for me, I'm on the fence as to whether or not such things are positive or not. Some people like cyberpinoy see it as a terrible thing. The majority here seems to view it as a positive thing although most people generally agree that it creates a downwards pressure on BTC price.

Why would anyone think it's a bad thing? Widespread merchant adoption ix exactly what every wants and needs for bitcoin to become valuable as both an asset and a currency.

A merchant is not an island. As Bizmark said, merchants have expenses such as rent, power, staff wages, insurance, shipping, etc. 99% of the time, these obligations must be paid in fiat currencies.

Companies such as Dell have deep interconnections with many other companies which supply the hardware and software via established supply channels. Dell might use a processor and motherboard from Intel, a graphics card from Nvidia, software from Microsoft, a hard drive from Seagate, and a display from LG or Samsung in a single computer. A Bitcoin-only policy would only work if those companies also only accepted Bitcoin (if they sold their coins then it's the same problem just one step removed).

In turn, the mentioned companies might source their parts from a supplier which manufactures the components and these companies must also only accept Bitcoin.

Then these companies might have agreements with other companies which supply the raw materials needed for computer components who must also only accept Bitcoin. This includes the company that makes platter in the hard drive or who makes the resin for the plastic, or who mined the copper/gold for the wires, etc. And that's not including all the stuff that happens in between each step too.

Yep. They better try it first in one country and if it works well, they better roll it out on the whole world.

The theory goes that a business that accepts Bitcoin usually does so by utilizing a payment processor such as Coinbase and BitPay that automatically converts the bitcoins to fiat at the exact moment a transaction occurs. This protects the business from Bitcoin's volatility since they get the exact amount of fiat required. Furthermore, businesses almost always prefer to receive fiat over bitcoins since fiat is currently more useful than Bitcoin when paying for a business's expenses such as staff, maintenance, utilities, rent, etc.

The payment processor is able to convert bitcoin to fiat by selling the bitcoins - typically on an exchange. In other words, what really happens is that bitcoins are being "dumped" for fiat and therefore, this creates a downwards pressure on Bitcoin's price. So a business accepting Bitcoin would likely decrease the value of Bitcoin rather than increasing it.

This is assuming that this downward pressure is stronger than the upward pressure caused by the positive publicity for Bitcoin as well as increased mainstream awareness - an effect that seems to have faded after so many companies have started accepting Bitcoin in 2014. Then there are also special cases like Overstock which keep some of their customers' bitcoins in the form of bitcoins rather than exchanging them for fiat.

It is only Dell Canada and another country, right?

No just the opposite it decreases the value tramendously. because merchants like Dell do what i call the biweekly dell dump. I named it specifically after dell because once Dell began accepting BTC I watched the market drop a steady 20 to 40 dollars every two weeks for 6 months straight. Places like dell do not hold or buy coins and no one is buying bitcoins to specifically use on dell. Because dell also uses fiat as a payment method in conjunction with paypal, credit cards and even bank drafts, dell does not help bitcoins value it hurts it.

We dont need fiat merchants we need merchants that only accept crypto as a method of payment.


You could not be more wrong, it would actually be a lot better if merchants like dell did not accept bitcoin. Bitcoin is not money its a transaction process, leran this, understand this, and once you do you will better understand how the bitcoin developers and this whole community totally screwed the value of bitcoins. Promoting it to coin dumping merchants like Dell and Amazon is not the way to increase its value. Giving holders places that only accept bitcoins as a payment method is what the developers should have done.

By pushing bitcoins on coin dumping merchants it has killed the value, making it less profitable to mine, as with this whole bitcoin project, the developers spend no time anticipating the future of the project, they see only the hand in front of their face, and this problem continuously kicks them in the face. They need to start looking past the obvious and plan for anything that may arise. becasue so far everything they didnt plan for has happened and negatively effected their project.

It is definitely better than if they did not accept Bitcoin.

I think it's going to be this trend for a while. Tech companies accepting Bitcoin before the rest deem it safe. Seems logical.

Netherlands but currently out of country for some work

Hmm where are you from ?

Ps - post the pictures from order to shipm:)

Internationally? That's great news! I might just get something from them now
Ps- If i do , i will post some pictures here

Not surely , they are just increasing there chances on prbablity as per scientific trade qualities

Are they trying to dump bitcoins ?

you here one business starts accepting bitcoin meanwhile somewhere else has stopped accepting bitcion as payment like wordpress
wordpress removes bitcoin payment option:
https://bitcointalksearch.org/topic/wordpress-removes-bitcoin-payment-option-965605

Except sadly it rarely does. It's such a shame that even the slightest bit of bad news can effect the price negatively but the price doesn't go up on the back of good news such as merchant adoption or massive investments in bitcoin start ups. It's puzzling. I don't really know what it'll take for the price trend to reverse.

When Bitcoin is on as many payment processors, payment methods, checkouts, ways to pay, ways to donate, etc is when we finally will get the mainstream user's curiosity piqued.

Eventually, some of these customers will try to find out all they can about this new payment method, some will actually attempt to give it a shot.  You get 1 convert, soon they tell their spouse, family, friends, etc, and you get the ball rolling.

That's basically this whole point right now.  To get the ball rolling, to go viral pretty much.

I think some extra taxes will be involved in that process...Its easier to buy one with fiat at your own country for now.!

Hopefully it goes worldwide soon

If you are not from uk etc ! You can buy the product setting region uk etc by giving your friend , relative address and ask his/her to ship to you simply u bought with btc lol

Yeah wtf. Make it global or dont call it international just to hype it.

I almost got excited, then realized it's still only US, Canada and the UK. Way to use the word "internationally"