Skip to main content
  1. Home
  2. Web
  3. News

Dell, Newegg start accepting Bitcoin as payment

Mike Flacy
By

Yet another step towards mass acceptance of the digital currency, Dell announced this week that the company will be accepting Bitcoin for purchases of consumer goods. Originally announced by CEO Michael Dell on his personal Twitter account, Dell will be partnering with third-party payment processor Coinbase to convert the digital currency into U.S. dollars.

Based on previous deals with Coinbase and other online companies, it’s likely that Dell will start paying the company a one percent processing fee after the first one million in sales that are processed using Bitcoin. Speaking about the new option for consumers, Dell spokesman David Fink said “We put this together quickly as a result of listening to our customers. It’s another way for customers to have a relationship with Dell.”

Related Videos

Of course, Dell isn’t the first online company to accept Bitcoin as a form of payment. Earlier this month, popular computer parts company Newegg started accepting the currency and put together specific builds to help consumers mine the virtual currency. In addition, Newegg took the promotion a step further by offering an additional 10 percent discount on all orders that use Bitcoin for processing for a limited time. It’s likely that companies like Newegg could offer more Bitcoin discounts since the conversion rate of the currency is so volatile and has the potential to increase over time.

Prior to Newegg, companies like Dish Network, Expedia and Overstock.com also started accepting Bitcoin as payment. Of course, just a small portion of consumers are actually using the virtual currency as payment. While Overstock.com saw early success with sales paid for with Bitcoin, the most recent company filing indicates that less than 1 percent of all sales are being paid for with Bitcion.

Interestingly, Google just added Bitcoin to the currency conversion search tool this week. For instance, if you search for the phrase ‘1.5 BTC to USD,’ the value of 1.5 Bitcoin in U.S. dollars would appear at the top of the screen. Using this tool, it’s much easier to track the price fluctuations of the currency.

bitcion-value

Similar to Dell, Google is partnering with Coinbase to get this data. It also works with the voice search function in case you simply just want to ask Google “What is the price of Bitcoin?” Microsoft added a similar tool to Bing during early 2014 and Yahoo added a Bitcoin value tracker to the finance section of the site during June 2014.

Also occurring this week, New York took first steps towards regulating Bitcoin. Proposed by the New York’s Department of Financial Services, the regulations require companies to apply for a BitLicense to buy, sell, exchange, store or transfer Bitcoins between the company and third parties. The proposal will be up for public comments starting on July 23 and will stay open for the following 45 days. Assuming the proposal is acceptable to the public, the regulations will still have to be approved before the agency can enforce the new licensing procedure.

Editors' Recommendations

Topics
The IRS is cracking down on people who didn’t pay taxes on Bitcoin earnings
bitcoin cryptocurrency 2019 broken mem 2

If you've been trading Bitcoin and haven't been reporting your earnings to the IRS, you might be getting a surprise in your mailbox.
The IRS is cracking down on cryptocurrency traders who didn’t report their earnings on their taxes. By the end of next month, around 10,000 people are expected to get letters from the IRS asking them to pay back taxes on unreported earnings from cryptocurrency trading, Engadget reports.
Last year the IRS launched a “Virtual Currency Compliance campaign” to address noncompliance related to the use of virtual currency.
“U.S. persons are subject to tax on worldwide income from all sources including transactions involving virtual currency. IRS Notice 2014-21 states that virtual currency is property for federal tax purposes and provides information on the U.S. federal tax implications of convertible virtual currency transactions,” reads the announcement. “The Virtual Currency Compliance campaign will address noncompliance related to the use of virtual currency through multiple treatment streams including outreach and examinations. The compliance activities will follow the general tax principles applicable to all transactions in property, as outlined in Notice 2014-21. The IRS will continue to consider and solicit taxpayer and practitioner feedback in education efforts, future guidance, and development of Practice Units. Taxpayers with unreported virtual currency transactions are urged to correct their returns as soon as practical. The IRS is not contemplating a voluntary disclosure program specifically to address tax non-compliance involving virtual currency.”
Last week the IRS started sending “educational letters” to some taxpayers. The names of those who are receiving the letter were acquired from “various ongoing compliance efforts” conducted by the IRS.
"Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest, and penalties," said IRS Commissioner Chuck Rettig. "The IRS is expanding our efforts involving virtual currency, including increased use of data analytics. We are focused on enforcing the law and helping taxpayers fully understand and meet their obligations.”
Taxpayers that do not accurately report their earnings through cryptocurrency trading are liable for the tax for those earnings as well as penalties and interest. In some cases, the IRS notes that those who have not paid taxes on cryptocurrency earnings could potentially face criminal prosecution.

Read more
What is Libra? Here’s what you need to know about Facebook’s new cryptocurrency
episode 154 facebook project libra particpants 1200x675

In a white paper released by Facebook, the company outlined the objectives and specifications of a new cryptocurrency called Libra. The cryptocurrency, which has been in development for a more than a year, is designed to allow payments to be processed over the internet globally, and to incorporate the 1.7 billion people around the world who don't have a bank account or a line of credit.

While the cryptocurrency won't fully launch until 2020, here's what you should know before adopting the platform.
What is Libra?
Rumors have been circulating about a cryptocurrency developed and/or managed by Facebook for at least a year, and now it is finally out in the open for people to see in the form of Libra. Libra is a cryptocurrency managed by the Libra Association that allows users to exchange fiat currency for Libra (i.e. buy and sell Libra) for use in online transactions. In order to drive the widest adoption, Libra does not require users to have a bank account or a line of credit such as a credit card in order to own any Libra cryptocurrency -- they simply have to convert money into or out of Libra to use it.

Read more
Facebook’s crypto isn’t a new Bitcoin, it’s Disney Dollars for a new world order
A broken Bitcoin over a grey background.

Facebook is getting into the cryptocurrency market. It announced a digital wallet called Calibra on Tuesday, which it plans to launch in 2020.

The company wants to be the one to bring the reported 1.7 billion "unbanked" adults into the world of financial services under its umbrella. But the company's solution isn't another Bitcoin -- far from it. Libra, as the currency is known, is designed to allow Facebook users to make purchases on the social network and on other websites online.

Read more