Dell, China, and Bitcoin

[jl2012]

Dell accepting bitcoin could be MUCH bigger than you think

http://ww4.sinaimg.cn/bmiddle/6d9e93aajw1eii0tf52tgj20hs0h6ac5.jpg

Andy, a Chinese, shared his experience on Weibo (Chinese Twitter). With the 10% discount, he bought an Alienware 14 (http://www.dell.com/us/p/alienware-14/pd.aspx) for 6442CNY in bitcoin

The same item is selling at 11999CNY in China: http://item.jd.com/1107676.html . He saved 46%

You may wonder why he couldn't buy it from dell.com directly before. Due to strict foreign exchange control, Chinese people could hardly have a "foreign currency credit card", and usual credit cards could not pay bills in USD or other foreign currency. As Dell now accepts bitcoin, Chinese people could order from dell.com directly, asking them to deliver to the US address of Haitao ( http://www.haitao.com/ ), who will then ship the item to China.

This is only the beginning.

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[MatTheCat]

Dell accepting bitcoin could be MUCH bigger than you think

http://ww4.sinaimg.cn/bmiddle/6d9e93aajw1eii0tf52tgj20hs0h6ac5.jpg

Andy, a Chinese, shared his experience on Weibo (Chinese Twitter). With the 10% discount, he bought an Alienware 14 (http://www.dell.com/us/p/alienware-14/pd.aspx) for 6442CNY in bitcoin

The same item is selling at 11999CNY in China: http://item.jd.com/1107676.html . He saved 46%

You may wonder why he couldn't buy it from dell.com directly before. Due to strict foreign exchange control, Chinese people could hardly have a "foreign currency credit card", and usual credit cards could not pay bills in USD or other foreign currency. As Dell now accepts bitcoin, Chinese people could order from dell.com directly, asking them to deliver to the US address of Haitao ( http://www.haitao.com/ ), who will then ship the item to China.

This is only the beginning.

But normal Joe Blogg's Chinese can't get Bitcoin easily and I would bet my balls that there will be still hefty import duties to pay on that PC before 'Andy' receives it. China isn't going to let it's economy be undermined so easily.

[jl2012]

Dell accepting bitcoin could be MUCH bigger than you think

http://ww4.sinaimg.cn/bmiddle/6d9e93aajw1eii0tf52tgj20hs0h6ac5.jpg

Andy, a Chinese, shared his experience on Weibo (Chinese Twitter). With the 10% discount, he bought an Alienware 14 (http://www.dell.com/us/p/alienware-14/pd.aspx) for 6442CNY in bitcoin

The same item is selling at 11999CNY in China: http://item.jd.com/1107676.html . He saved 46%

You may wonder why he couldn't buy it from dell.com directly before. Due to strict foreign exchange control, Chinese people could hardly have a "foreign currency credit card", and usual credit cards could not pay bills in USD or other foreign currency. As Dell now accepts bitcoin, Chinese people could order from dell.com directly, asking them to deliver to the US address of Haitao ( http://www.haitao.com/ ), who will then ship the item to China.

This is only the beginning.

But normal Joe Blogg's Chinese can't get Bitcoin easily.

46% discount should provide enough incentive for Joe Bloggs to open an account on huobi or okcoin. Despite China has banned bitcoin 10 times, I can tell you that, based on my first hand experience, Chinese people could still deposit fiat to exchanges in less than 30 minutes.

[jl2012]

By the way, the import tax for laptop could be as high as 10%: http://best.pconline.com.cn/bbs/topic-39458.html . Still much lower than the discount. You may not be asked to pay it if you were lucky enough.

[MatTheCat]

46% discount should provide enough incentive for Joe Bloggs to open an account on huobi or okcoin. Despite China has banned bitcoin 10 times, I can tell you that, based on my first hand experience, Chinese people could still deposit fiat to exchanges in less than 30 minutes.

In the latter part of 2013, Bitcoin skyrocketed arguably due to an increasing mudslide of Chinese capital that thought they had found a way of getting their wealth out the Chinese economy and turned into USD or whatever. The Chinese government put a stop to that....sure, they never banned Bitcoin outright, they just kind of disapproved of it and that was enough to send the majority of Chinese Bitcoiners packing.

As and when the range of Bitcoin accepting merchants increases, authorities in China and indeed authorities all across the world will surely take measures to prevent their economies and tax collecting capacity is not undermined.

By the way, the import tax for laptop could be as high as 10%: http://best.pconline.com.cn/bbs/topic-39458.html . Still much lower than the discount. You may not be asked to pay it if you were lucky enough.

Like I said, if these sort of Bitcoin purchases become a big enough issue, the authorities will move to close the loophole....

......but non-the-less, what you have stated regarding Bitcoin and Dell is very poignant and is the sort of thing that will make Bitcoin soar......Capital Flight and/or Avoidance of Capital Controls primarily from developing and especially from the emerging BRICS nations from national currencies into USD/Euro.

Bitcoin is a financial weapon....

Cui Bono? The powers behind the current Western economic and financial Hegemony!

[jl2012]

46% discount should provide enough incentive for Joe Bloggs to open an account on huobi or okcoin. Despite China has banned bitcoin 10 times, I can tell you that, based on my first hand experience, Chinese people could still deposit fiat to exchanges in less than 30 minutes.

In the latter part of 2013, Bitcoin skyrocketed arguably due to an increasing mudslide of Chinese capital that thought they had found a way of getting their wealth out the Chinese economy and turned into USD or whatever. The Chinese government put a stop to that....sure, they never banned Bitcoin outright, they just kind of disapproved of it and that was enough to send the majority of Chinese Bitcoiners packing.

As and when the range of Bitcoin accepting merchants increases, authorities in China and indeed authorities all across the world will surely take measures to prevent their economies and tax collecting capacity is not undermined.  

Well, as I replied, Chinese authorities may still charge as high as 10% of import tax. Who cares 10% tax when you could save 46%? So this is a win-win situation: Joe gets a cheap laptop with 36% discount, and Chinese taxman gets paid

[WootKung]

kinda ironic that the PC is prob made in china lol

[jl2012]

kinda ironic that the PC is prob made in china lol

I heard that Chinese earned 1 USD from each iPhone they made 

[MatTheCat]

kinda ironic that the PC is prob made in china lol

Taiwan is generally the big manufacturing base of computer PCBs.

[spazzdla]

I agree.. A large company getting a discount with BTC could inspire them to buy/hold BTC.

[kashish948]

why is the price not moving because of this news? i expected it to shoot to atleast 700$ on this news! it dint move 10$

[Benjig]

I agree.. A large company getting a discount with BTC could inspire them to buy/hold BTC.

Exactly, people will realize that the best way is not only to buy bitcoin to pay for items but to hold it, with this they have a true reason to hold bitcoin besides only the speculation.

[azguard]

So basically this can be backfire, or can bee really good for BTC community.
China will be in game, but when this comes to rest of the world then price will go boom.

Yet again it had been showed that big companies must play first move that the rest smaller companies can make moves if this comes to light then price of btc can pop up to 10k.

[keithers]

News out of China has actually been eerily quiet lately. Before it would seem that everytime there was a price run, we would be clobbered by some news out of China. It has been crickets from there lately

[scarsbergholden]

But normal Joe Blogg's Chinese can't get Bitcoin easily and I would bet my balls that there will be still hefty import duties to pay on that PC before 'Andy' receives it. China isn't going to let it's economy be undermined so easily.

How hard is it to get money into Huobi or Okcoin these days? I don't recall them ever stopping bank transfers.... that whole PBOC thing just sort of died. Didn't it?

[Skinnkavaj]

But normal Joe Blogg's Chinese can't get Bitcoin easily and I would bet my balls that there will be still hefty import duties to pay on that PC before 'Andy' receives it. China isn't going to let it's economy be undermined so easily.

How hard is it to get money into Huobi or Okcoin these days? I don't recall them ever stopping bank transfers.... that whole PBOC thing just sort of died. Didn't it?

Yes there was a source saying that China did not really ban bitcoin and it looks like all chinese exchanges works fine

Back to the post, Dell accepting BTC is HUGE..

[Benjig]

But normal Joe Blogg's Chinese can't get Bitcoin easily and I would bet my balls that there will be still hefty import duties to pay on that PC before 'Andy' receives it. China isn't going to let it's economy be undermined so easily.

How hard is it to get money into Huobi or Okcoin these days? I don't recall them ever stopping bank transfers.... that whole PBOC thing just sort of died. Didn't it?

Yes there was a source saying that China did not really ban bitcoin and it looks like all chinese exchanges works fine

Back to the post, Dell accepting BTC is HUGE..

Yeah, those exchanges are still working and they have still the largest volume, so that ban didnt what some people was expecting.

[leezay]

The news has no effect on price?

[novacn]

But normal Joe Blogg's Chinese can't get Bitcoin easily and I would bet my balls that there will be still hefty import duties to pay on that PC before 'Andy' receives it. China isn't going to let it's economy be undermined so easily.

How hard is it to get money into Huobi or Okcoin these days? I don't recall them ever stopping bank transfers.... that whole PBOC thing just sort of died. Didn't it?

It is still pretty hard to get money into exchange markets like Huobi, OKcoin and BTCChina. People have to transfer their money to a middle man first.

[98problems]

But normal Joe Blogg's Chinese can't get Bitcoin easily and I would bet my balls that there will be still hefty import duties to pay on that PC before 'Andy' receives it. China isn't going to let it's economy be undermined so easily.

How hard is it to get money into Huobi or Okcoin these days? I don't recall them ever stopping bank transfers.... that whole PBOC thing just sort of died. Didn't it?

It is still pretty hard to get money into exchange markets like Huobi, OKcoin and BTCChina. People have to transfer their money to a middle man first.

But it is still possible so people in China can still do it and they do.

I would think that China will eventually give in to their citizens using bitcoin and the capital controls will ease, at this point the price of bitcoin would likely spike.