Alongside cash and credit, Microsoft will now also accept Bitcoin in exchange for digital content, including music, movies and games on its Xbox consoles and Windows devices.

Bitcoin fans wanting to use their money on Microsoft's goods have a few caveats to keep in mind. First, you can't directly exchange Bitcoins for new games. You'll need to transfer the Bitcoins into your Microsoft account, and then use that money to purchase your content. Users can transfer up to $1,000 into their Microsoft account each day, but high rollers should be aware that there's a $5,000 maximum limit on each account. Once Bitcoins are transferred they can not be refunded.

If your eyes just glazed over, Bitcoin is an open source, peer-to-peer currency backed by the security of a computer algorithm instead of the economic strength of a nation. As the Bitcoin design is available to the public its supporters argue that the currency offers more transparency and freedom from human machinations than traditional monetary systems, and is inherently less likely to encounter the sorts of problems that caused the 2008 financial crisis.

Detractors point to events like the recent Mt. Gox scandal, in which a major Bitcoin exchange suddenly lost the equivalent of $470 million (most of which has never been recovered), as indicators that the cryptocurrency may not be as secure as advertised.

Posted: Dec 11, 2014 11:38 pm
Related Forum: Xbox Forum

Source: http://www.joystiq.com/2014/12/11/microsoft-opens-its-coffers-to-cryptocurrency-bitcoin/