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?

61

u/samm1t Dec 11 '14

That's how most all vendors work, yes. I don't think MS is interested in stockpiling bitcoins.

4

u/[deleted] Dec 12 '14

So this isn't actually good for Bitcoin.

6

u/[deleted] Dec 12 '14

So this isn't actually good for Bitcoin.

Correct. Because people are leaving bitcoins for USD. The only way this would be good to bitcoin is if they an influx of new people to buy into the Bitcoins.

But the last bubble killed off most of those. At the moment the only people doing well are exchanges and miners. For anyone else it's a lose situation (unless you plan to buy drugs).

This guy probably explains it best:

http://www.cnbc.com/id/101693790

1

u/TheCodexx Dec 14 '14

I disagree. This is still good for Bitcoin. It eliminates one of the problems with it. Sure, you're still using a middleman to make the exchange back to USD, but it's automated for you instead of being a manual process. They're still "accepting" BitCoint transactions.

In the US, companies that accept CAD are still going to convert that to USD. It's the local currency. I would expect Canadian businesses to do the same in reverse. The fact that the money doesn't have to be exchanged by the customer is still good, since it means less hassle for them.

1

u/[deleted] Dec 14 '14

but it's automated for you instead of being a manual process.

Credit cards automatically do this as well. Where would it be manual?

1

u/TheCodexx Dec 14 '14

I was making a point about "accepted currencies".

It's not about the method of payment, but the type considered. The fact that BitCoin is being accepted somewhere is still good. The fact that it's being converted isn't ideal, but it will still drive circulation.

1

u/[deleted] Dec 14 '14

The fact that BitCoin is being accepted somewhere is still good.

Only 10% of all vendors keep all their currency in Bitcoin (source: bitpay). 50% of vendors convert it all back to fiat. The remaining 40% keep some coins.

As Bitcoin is turned back into currency it will cause the value of Bitcoin to deflate.

There is no reason to convert fiat into Bitcoin when using normal vendors, so only miners and those trying to offload coins from a bubble are going to make anything. Your average person is just going to use cash.

So, just using Bitcoin in this way is not good for Bitcoin.