Microsoft Takes Bitcoin Payments for Mobile, Xbox Content

There are plenty of people these days that turn to Microsoft for content on one front or another.

Whether it’s Xbox for games, music and video or one of Microsoft’s mobile options, there are plenty of places to get content with Microsoft.

With the upcoming holidays, there will likely be plenty more people looking for content, and now, those people will have a brand new option to pay for said content: bitcoin.

Bitcoin is now a payment option for not only Xbox devices, according to word from Microsoft, but also for Windows and Windows Phone as part of an integration with BitPay, a Georgia firm that offers bitcoin processing. Reports from Microsoft, as expressed by corporate vice president of Universal Store at Microsoft Eric Lockard, suggest that bitcoin is being regarded by the company as part of a long-term strategy in which Microsoft gets behind digital currency.

Lockard elaborates, noting that the use of such currencies is not yet mainstream, but is growing thanks to the work of early enthusiasts. Thus, Lockard concludes, Microsoft offering up bitcoin-based options really only makes sense in the long term, particularly if bitcoin takes off the way enthusiast believe it can.

Granted, it’s not a full integration as of yet. The current structure calls for Microsoft to take bitcoin as a means to add money to a Microsoft account, which can then be used to purchase digital goods.

It can’t be used, yet, to purchase products and services directly. Plus, there’s a $5,000 limit per account, and $1,000 limits on single-day transactions. Interestingly, this approach builds somewhat on earlier remarks from Microsoft co-founder Bill Gates, who expressed enthusiasm for digital currency but noted that it could have some issues as adoption grows.

But one thing is clear: this is a massive shot of credibility for bitcoin, the likes of which it really hasn’t had since Overstock.com decided to take bitcoin for its goods. It’s one thing to say that bitcoin is the next big thing, but wholly another to say that bitcoin is a big deal because Microsoft accepts it. Again, granted, it’s not a full acceptance as of yet, but it’s certainly a start.

The more companies that get on board with bitcoin, the more likely bitcoin is in the end to become a fully viable alternative currency. Though there are likely to be tax issues getting involved here—it’s tough to levy taxes on a currency that never actually shows up in anyone’s hands—increased utility will really only help bitcoin gain ground long-term.

Only time will tell just what kind of impact Microsoft’s acceptance of bitcoin will have long-term, but this could be a very big step forward for the currency indeed. It could also prove to be a flash in the pan, but if Microsoft’s acceptance makes others follow suit—or lose a potential competitive advantage—it could well spur more businesses adopting bitcoin and digital currencies going forward.