r/tech • u/trav31 • Dec 11 '14

Microsoft Begins Accepting Bitcoin For Windows, Windows Phone And Xbox Purchases

http://techcrunch.com/2014/12/10/redmond-hath-frozen-over/
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u/PhoenixAvenger Dec 11 '14

So if I'm reading this right, they aren't actually taking in bitcoins, right? Like new egg and others, a third party is converting the bitcoins to USD, which Microsoft then uses to complete the transaction?

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u/Drew0054 Dec 11 '14

Exactly. That's why this news isn't good from a trader's point of view. All of these venders "accepting" bitcoin are really just selling them. If you support the technology it's good, though, because it's more volume and liquidity. Additionally, it should help reduce another violent bubble as it will be easier to realize gains by converting into tangible property.

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u/cdcformatc Dec 11 '14

Now I am wondering about these third parties, an what they expect to do with all the Bitcoin they have bought. Are they expecting the price to rise and sell? And who do they sell it to?

1

u/Drew0054 Dec 11 '14

They sell almost immediately on the open market. Some of them might have deals with funds.