Why Don’t More Online Stores Accept Bitcoin?
Microsoft announced earlier this month it would once again accept Bitcoin in its Windows and Xbox online stores. However, just a week prior, the company had stopped allowing customers to use the cryptocurrency to pay for apps and online games because of its volatility, according to BleepingComputer.
Market volatility is just one of the reasons more retailers do not accept Bitcoin. Just yesterday, the price of Bitcoin decreased nearly 8%.
The process of how Microsoft processes these Bitcoin payments has not yet been announced. To use Bitcoin, customers deposit the currency into their Microsoft account and are given a cash balance to use on games or apps. However, it is unlikely Microsoft is immediately selling the Bitcoin, so they may still have to weather market volatility.
For example, if an app in the Xbox online store costs $10, an 8% drop in the Bitcoin price would mean Microsoft would really only be receiving $9.20 for the app. This is not a massive difference. However, there would be a huge discrepancy if the consumer was buying a $3,000 gaming PC. A payment with Bitcoin would have only left Microsoft with $2,760 at the end of a day similar to yesterday.
In addition to market volatility, another issue is security. According to a report from Bloomberg Technology, in less than a decade, cybercriminals will have stolen $1.2 billion worth of Bitcoin and Ether–mostly from new investors or users. A report from Ernst & Young said hackers stole $400 million in cryptocurrencies last year.
High-Tech Bridge is trying to make it easier for blockchain startups to complete cryptocurrency transactions securely, which will help to eliminate some of these thefts. The company announced their Application Security Platform, ImmuniWeb, accepts payments in over 50 digital currencies.