Dell makes bold move on bitcoins

IT giant claims it is the largest e-commerce business to embrace crypto-currency via US pilot

Dell has given Bitcoin a vote of confidence by announcing it has begun accepting payments based on the crypto-currency.

Michael Dell tweeted today that his firm has become the largest e-commerce business to offer bitcoins as a purchase option, under a US pilot scheme.

The facility, which took Dell 14 days to set up in partnership with payment processing firm Coinbase, is initially only available to US consumer and small business customers visiting Dell.com.

A handy FAQ section on Dell's website walks customers through how to get up and running with the virtual currency.

"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," said Coinbase co-founder Fred Ehrsam.

"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."

Launched in 2008, Bitcoin is a distributed peer-to-peer network offering a payment system based on a completely digital currency.

The value of a bitcoin soared to over $1,000 last year but has since fallen to $623, or £363, with many experts believing its value will tumble further. The virtual currency has also been dogged by security concerns.

Dell is not the first major e-commerce firm to embrace Bitcoin, with travel agency giant Expedia, for instance, moving to accept the virtual currency in June.