How is Microsoft Affected by Bitcoin?
Microsoft, a tech giant of the world, also started accepting Bitcoin payments. The company has been providing support for Bitcoin through its payment system since 2014 and just recently announced that it will extend this feature to all users by the end of 2017.
Microsoft is one of those few companies that have taken a bold step to accept Bitcoin as one of their primary payment sources and are trying hard to make it more popular among people. Click this link for more information.
7 Things of Bitcoin that Benefits Microsoft
Microsoft’s decision to accept Bitcoin is an exciting move. Their main motive behind this step must be having a clear vision for the future. You will not question their motive but let us see how they are benefited from it?
1) Bitcoins are paid directly to Microsoft account without any delay. It saves time and money since no third party is involved.
2) Since Microsoft uses blockchain technology, they can track all the transactions and ensure that users are transacting funds in bitcoins only. Also, the transaction is secure and immune to hacking when using Bitcoins.
3) There is no volatility in bitcoin price; hence Microsoft has complete control over the amount received when a transaction occurs. So it is implausible that Microsoft will lose out on business deals due to the price volatility of bitcoins.
4) To receive payments in Bitcoins, all you need is an email address; this makes it easier for any retailer or service provider to accept bitcoins.
5) Using blockchain technology, Microsoft ensures the authenticity and security of all its products.
6) With the help of Altcoin.info block explorer, a user can see a list of all bitcoin transactions and ensure that they have been paid for successfully. This will further reduce fraud and fake deals.
7) Microsoft is marketing bitcoins as a fast and easy source of payment which will attract more companies towards it.
Their motive of using blockchain technology and strong security measures can help them win their market share by a large margin. Even though you saw various ups and downs in the price of Bitcoins this year, you cannot deny that it has been accepted worldwide as a legal source of payment.
6 Negatives of Bitcoin that Affects Microsoft
Some people think that though Bitcoins make it easy to receive and pay for services online, they can also be a reason for increased cybercrimes.
For example, Microsoft has been recently hacked, and a lot of data was stolen from their customers, which means even they have no control over the amount transferred or received.
- Microsoft has to bear the loss of value in bitcoins which is volatile and unpredictable – it can go both ways, either there will be a hike or a drop.
- Since bitcoin payments are irreversible, Microsoft has to ensure that its product prices are correctly displayed on their websites. No one takes advantage of this by charging extra money after receiving the item’s delivery.
- Microsoft has taken a bold step in accepting bitcoins; its competitors can also try doing the same, affecting major companies’ future revenue.
- In the case of payments being made in bitcoins, there is a possibility that Microsoft will be exposed to scams and frauds where transactions might not take place at all due to legal reasons.
- Government regulations are yet to be imposed on bitcoins. Therefore, you do not know whether it will be treated as a commodity or a currency shortly; this may indirectly affect Microsoft’s performance since they have started accepting bitcoins for their products and services.
- No government authority will take care of business disputes related to bitcoins. Further, there are not enough regulations for bitcoins.
For example, all Bitcoin transactions are currently considered personal, and users need to pay taxes on these transactions to their respective governments. This may bring a bad name to Microsoft if they do not pay tax.
Conclusion
It is too early to predict the performance of Microsoft with bitcoins, but one thing is confident they have started accepting bitcoins for their products and services. The investors are optimistic about its success, and even though there is a bit of risk involved in this new venture, it will bring good revenue in the future.
