Software and Internet giant
Microsoft Corporation has announced it will begin to accept payments using bitcoins. Microsoft account holders will be able to use the digital currency (or crypto-currency) to purchase Xbox games and videos. In addition, users will also be able to use bitcoins to add money to their accounts and then make payments for a range of Microsoft services, including software or Windows phone apps.
The corporation has become the latest in a number of providers to accept bitcoins payments. In July the digital currency was recognized as legal tender in the United States (a status that fell just short of recognizing it as a formal currency) and in September PayPal partnered with Coinbase and began accepting bitcoins as a means of payment. Companies like Dell, Expedia, and web hosts like HostDime.com, Inc. have followed suit. At present bitcoins can only be used in the United States and can only be used in set amounts.
The value of bitcoins changes based on complex mathematical formulas and reached a peak of $1,100 per coin in December 2013. The value subsequently dropped and at present the value moves around the $350 per coin mark. The digital currency has gained favor over recent months recovering from the disastrous collapse of MtGox in February 2014 which led to some calling bitcoin a “digital Ponzi scheme”. MtGox’s failure meant bitcoin holders lost in the region of 200 million dollars and the currency devalued dramatically at the time.
Do you know of any other providers using bitcoin payments? Let us know the details.
