Microsoft Catches The Bitcoin Bug, But It Could Cost Them

Microsoft, the software giant everyone loves to hate, has announced it has begun accepting bitcoin for Xbox and Microsoft accounts via Bitpay, a Bitcoin payment processor that most companies use. You can only add in fixed dollar amounts up to $100, and the funds can be used to digitally purchase Xbox games, music, video, and some other Microsoft things.

Warning: Bitcoin transactions can’t be reversed, so no direct refunds; it may take up to two hours for the transaction to go through; you can only purchase select things online; and you must be in the United States. Hopefully, Microsoft Support won’t be as abysmal as TigerDirect Support if you have a problem. Considering Bitcoin’s sad slide, about a 43% loss in value over the last 6 months, those Microsoft digital purchases might be a better investment opportunity.

But there may be costs to Microsoft for accepting bitcoin, as we learned was the case with the Mozilla Foundation. As stated in a recent blog post, the makers of Firefox lost revenue after making bitcoin an option. After 17 days, Mozilla raised $5,000 in Bitcoin donations, but saw their conversion revenue drop by $0.07 a visitor. That number seems small, but when scaled up to the end of their fundraising period, Mozilla would have lost $140,000 by accepting bitcoin, a serious amount for the non-profit. Well known amongst businessmen, marketers and Mozilla testers, increasing purchasing options can lead to a revenue drop. It is unknown how much accepting bitcoin could cost Microsoft.

Sadly, no word on Dogecoins.

(Photo: Wikimedia Commons)