Some large corporations are also interested in bitcoin. Daimler AG (OTC: DDAIY) the parent of Mercedes-Benz acquired PayCash Europe SA, a Luxemburg based digital payments platform that accepts bitcoin, Cryptocoins News reported.
Cynics will say that Daimler wants to make sure that corrupt officials, gangsters and drug dealers can keep making their Mercedes payments when the currency becomes worthless. Contrarian investors will smell alternative value and start googling bitcoin mining.
Several other large corporations also accept or process bitcoin payments including Target (NYSE: TGT), CVS Pharmacies (NYSE: CVS), The Home Depot (NYSE: HD), Dell, WordPress.com, Expedia, Microsoft (NYSE: MSFT), PayPal Holdings (NASDAQ: PYPL), Sears Holdings (NASDAQ: SHLD), Apple (NASDAQ: AAPL) and the Amazon (NASDAQ: AMZN) subsidiary Zappos, The American Genius reported. The corporate acceptance further demonstrates bitcoin’s utility, companies would not be taking it if they were not profiting from it.
Are Central Banks Proving Bitcoin’s Value?
The Central Bank of Nigeria is so worried about bitcoin that it ordered banks not use cryptocurrencies, Cryptocoins News reported. The bank claims it is worried about shady dealing, but a real reason is that it might be afraid of large outflows of its currency the Naira into cryptocurrency.
Not coincidently the move against bitcoin came as news reports described the Naira’s price as in freefall. On January 18, 2017, one Naira was worth .32¢ according to Google. On January 17, 2017, one US dollar was worth 497 naira on the black market and 314 on the official exchange, according to NAIJ.com. The street exchange rate for Naira to pound sterling was 597, and 521 naira for a euro.
The Nigerian bank was simply following the lead of the People’s Bank of China (PBOC) which sent bitcoin prices plummeting was raiding and inspecting exchanges. Like the Central Bank of Nigeria, the PBOC seems to be worried about massive outflows of currency via bitcoin. The yuan was trading for just 15¢ USD on January 18, 2017.
It looks as if central banks and large corporations are working hard to boost bitcoin’s value. One wonders if this will cause yet spike in the popular cryptocurrency’s price. Google reported that bitcoins were trading at $900.79 on January 20, 2017. The cryptocurrency’s price had soared to $1,070 earlier in January.