Another Sign That Bitcoin Is Here to Stay

Now you can buy your next PC using your favorite cryptocurrency.

Jul 22, 2014 at 10:14AM

Add another to the growing list of companies accepting Bitcoin. Dell will let you buy your next PC using the cryptocurrency via a partnership with Coinbase, a Bitcoin wallet supplier.

"Bitcoin is a new payment option intended to offer even more flexibility for customers. Bitcoin payments can be made easily from anywhere in the world, and offer reduced payment processing costs," Dell said in a Q&A posted at its site.

That's a powerful endorsement from one of the world's largest computing retailers, and suggests that Bitcoin is well on its way to achieving permanent status as a currency alternative.

One of these deals is not like the others
We can debate whether that's a good idea. My Foolish colleague, Leo Sun, lists plenty of good reasons for why it might not be, in this article. For our purposes, I'd rather focus on why Dell's backing is different from others who've come to accept Bitcoin.

Popular names include and Zynga. Tesla Motors (NASDAQ:TSLA) also gets mentioned from time to time, but shouldn't. Why? A Lamborghini dealer in Costa Mesa, CA took to the Internet in December to brag that it sold a Model S to a customer paying with Bitcoin.

"Bitcoin, a fully encrypted and fully digital currency, has been used by a recent client of ours to pay for a Tesla Model S Performance we had in our inventory.  That's right, an electronic currency was used to purchase a fully electric vehicle," the dealership wrote in a blog post.


Wouldn't we all buy a Model S with Bitcoin if we could? Living the dream doesn't equate to proof of a sustainable retail market. Credit: Lamborghini Newport Beach.

What makes Dell different is that there's a genuine business need for computer equipment. If the company is serious about accepting Bitcoin for big-ticket purchases, it could get Chief Financial Officers and company treasurers experimenting with the cryptocurrency for capital spending.

Think of how airlines hedge fuel prices. Betting on Bitcoin isn't the same as buying a future contract, but I could see experimenting with a small fund earmarked for 'nice-to-have' special projects that exist outside the normal budgeting process, limiting the potential impact of Bitcoin's noted volatility.

Who really wins
There's reason to believe we're headed for just this sort of future. Coinbase claims that 34,000 businesses trust the company to "integrate" Bitcoin payments, including several big names other than Dell. Meanwhile, both major search engines now allow for Bitcoin pricing and currency conversion.

So who wins if Bitcoin goes mainstream? Cameron and Tyler Winklevoss, for starters. The twins are closing in on getting a Bitcoin ETF up and trading on the NASDAQ market, which would add protections for common investors like you and me. (I'd wait for its arrival before committing any meaningful investment funds to the cryptocurrency.)

But the biggest winner of all could be Coinbase and its early backers, who've committed $31.7 million in funding as of this writing, TechCrunch reports. Andreessen Horowitz and Union Square Ventures are among the venture capitalists to have invested in Coinbase.

A few months ago -- amid the Mt. Gox disaster -- predicting a windfall for any of Bitcoin's backers would have seemed folly. No longer. Dell's backing is just the stamp of approval the cryptocurrency needs to become a permanent fixture.

One thing you need to know before investing in Bitcoin ...
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

Tim Beyers has no position in any stocks mentioned. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information