Microsoft has stopped supporting Bitcoin as a payment method for Microsoft products, Bleeping Computer has learned.
Several Microsoft employees have told us the move is temporary and cited the unstable state of the Bitcoin currency. Microsoft added support for Bitcoin in 2014, and has previously temporarily stopped supporting Bitcoin in the past [1, 2].
Steam took a similar decision last year
The move and reasons are similar to Steam's decision to stop supporting Bitcoin transactions at the start of December 2017.
Steam cited "high fees and volatility" as the reason it stopped supporting Bitcoin payments.
Transactions fees have skyrocketed from a few cents a few years back to tens of dollars, making Bitcoin almost unusable for microtransactions, where some users end up paying a large percentage of the transaction total as a transaction fee.
For companies like Microsoft and Steam, Bitcoin's volatile price is also an issue because sudden and unforeseeable price drops may incur huge losses.
Microsoft does not allow users to buy products with Bitcoin directly but asks users to add a predetermined amount of dollars to their account balance, for which they can pay with Bitcoin.
That transfer is still subject to transaction fees, and Microsoft may still lose the value of the Bitcoin funds it received in its account, something that any financial department will have an issue with.
Bitcoin's price fluctuation is causing problems
While Bitcoin price has always fluctuated, it never swung like it did in the past three months. To be widely adopted by the financial sector, a digital or fiat currency must be stable in order to be useful, something that Bitcoin is definitely not.
In the meantime, Microsoft is advising customers to use other methods of payment, such as credit or debit cards, PayPal accounts, or a direct bank account.
Also this week, Visa terminated its agreement with WaveCrest, a prepaid card issuer, shutting down hundreds of thousands of Bitcoin debit cards issued by Bitwala, BitPay, Cryptopay, and others.
Comments
Amigo-A - 6 years ago
Some make speculation on the commission, others make speculation on own loud-sounding name, first make support, then throw to the mercy of fate. And what are they better? The more power, the more speculation and corruption.
SvenViking - 6 years ago
"Transactions fees have skyrocketed from a few cents a few years back to tens of dollars, making Bitcoin almost unusable for microtransactions"
This seems like an understatement.
Occasional - 6 years ago
While the blockchain technology may be worthy of investment, cryptocurrency is doing more harm than good. Those that have, or believe they will, make fortunes by it defend it to the hilt; but their arguments are as weak as they are self-serving. That's not to say all involved are without conscience; just that they don't acknowledge the dark side of the picture - the moral of the story in Jurassic Park.
dreadrocksean - 6 years ago
We defend it because it is a better form of CURRENCY that fiat.
Besides the fact that "self-serving" is only bad if it's the other guy, how is it relevant?
Occasional - 6 years ago
Ok, let's assume we both are reasonable and sincere, and we would each put arriving at the best solution as more important than who put forward the "winning" idea (this shouldn't be a zero sum game).
We'd get there by evaluating all the points and counterpoints to a position objectively; so we could come to a reasoned assessment. In that case, a self-serving argument would be one that is advanced -only- because it profits the party doing so -regardless- of valid objections as to it's truth, relevance or significance.
Advocating propositions which advance or protect one's interests is not wrong, and doesn't make them invalid. Whether they do or not is irrelevant, unless advocated in a manner intended to obscure or deny reasonable objections and counter arguments.
NickAu - 6 years ago
Bitcoin is not a currency its too volatile, its a commodity.