Michael Dell Says Blockchain Technology Is ‘Underrated’

By | October 19, 2021

The founder and CEO of Dell Applied Sciences noted that blockchain as a class is “underestimated in all likelihood”, though declined to touch on whether bitcoin was undervalued or overrated. The remarks came during an interview Saturday with the New York instance’s e-newsletter Dealbook.

Dell was an early adopter of bitcoin. His firm, which sells a wide range of goods from {hardware} to cloud computing companies, began accepting cryptocurrencies as a form of cost in 2014. It later stopped transacting with bitcoin in 2017 due to “low demand”.

Tesla’s Elon Musk halted bitcoin transactions for his firm in May, citing considerations about its environmental impact. Bitcoin mining requires more electricity than some countries consume in a year. And some establishments are wary of crypto, which usually puts millions of {dollars} at risk for traders after a current round of high-profile trading errors.

Dell’s interest in blockchain technology again ties in with the company’s infrastructure venture, where information storage and boosting other companies generated $8.4 billion in second-quarter revenue. Its 56-year-old billionaire founder recently listed blockchain technology as a potential income driver for corporates, along with autonomous automobiles and AI-powered biotechs.

“There is a vast amount of information in the midst of a more and more concerned clever world,” he told Yahoo Finance. “And all that information requires the infrastructure and the know-how to handle it. And so we’re the world’s main supplier of all of that.”

The value of bitcoin has been extremely risky in 2021. The digital coin fell in May, falling to $30,000 after a selloff in the broader market. It has continued to rise and fall in the current weeks, falling to around $42,000 last month after China imposed an outright ban on the cryptocurrency. George Soros’ funding agency confirmed that it has been buying and selling bitcoin, which has since grown in value to over $55,000.

Correction: An earlier model of this story incorrectly stated that Dell was “going to cross over” to bitcoin. Dell instructed Insider to speak on questions about whether bitcoin is over or undervalued. This story has been updated to reflect this improvement.

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