Microsoft Catches The Bitcoin Bug, But It Could Cost Them

December 11, 2014 | Peter Yeh

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)