Bitcoin Market Shows No Enthusiasm Despite Dell's Big Announcement

Bitcoin prices have remained largely stagnant despite PC maker Dell's big announcement that it is now accepting payments in the popular digital currency.

Bitcoin rates inched down 0.29% to $626.38 (£366.6, €463.13) as at 8:45am BST, according to CoinDesk. It came down as much as $623.66 during the day. Bitcoin closed up 0.9% at $628.22 on 18 July.

Computer giant Dell has become the largest ecommerce business to accept popular digital currency bitcoin for payments, surpassing Dish Network.

Dell has annual revenues of about $57bn in 2013, compared to Dish Network's $13.9bn.

Dell's CEO and board of directors chairman Michael Dell officially announced the news on Twitter. The option is available only for US customers, and it cannot be used to make payments to Dell Financial Services.

"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 its FAQ page, answering why it is accepting bitcoin.

The computer company has partnered with payment processor Coinbase to make bitcoin payment available on its site. Consumers and small business shoppers across the US can now buy all items on Dell.com including the Alienware line of products.

Dell said it will be offering a special Alienware promotion where customers can save 10% off a new Alienware system purchase when checking out with bitcoin.

"It is always our goal to respond quickly to our customers and ensure their needs are met. Partnering with Coinbase to implement this solution in 14 days is a prime example of the new, more agile Dell," Dell chief investment officer Paul Walsh said.

"We've fostered a close partnership with the Dell team and that's been instrumental in getting the Coinbase integration up and running in such a short timeframe. We look forward to continuing to support the team as they explore other ways to offer even more functionality when it comes to bitcoin payments," said Fred Ehrsam, Co-Founder of Coinbase.

With the move, Dell joins popular companies such as Expedia, Overstock, Newegg to accept the digital currency.