You can now buy apps and Xbox games using Bitcoin: Microsoft allows account owners to top up using the digital currency


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It may have a reputation as the digital currency of choice for some unsavoury online deals, but Bitcoin is about to become more mainstream. 

Gamers and phone owners can use the currency to buy Xbox titles as well as apps for devices running Windows Phone.

While no official announcement has been made, Microsoft has created a webpage that explains how the currency can be used to top up a Microsoft account.

Bitcoins (illustrated) can be used to buy Xbox games as well as apps for Windows Phones. While there was no official announcement, a webpage explains how the currency can be used to top up Microsoft accounts

Bitcoins (illustrated) can be used to buy Xbox games as well as apps for Windows Phones. While there was no official announcement, a webpage explains how the currency can be used to top up Microsoft accounts

However, Bitcoins can only be used to load money into a Microsoft wallet, rather than make direct payments, TechCrunch noted.  

At the moment, Bitcoins can be added to US-based accounts, and have to be purchased in specific amounts, such as $10, $15, $25, $50, $75 and $100.

MailOnline has contacted Microsoft about when UK customers will be able to pay for goods using the virtual coins.

Microsoft is the latest large company to adopt the digital currency, which is becoming increasingly mainstream.

Customers can already use it to pay for goods via Paypal, Dell and Expedia, among others.

The move has been greeted enthusiastically by many Bitcoin users. 

At the moment, Bitcoins can only be used to load money into a Microsoft wallet, rather than make direct payments, but this means that people can buy apps for Windows Phones, games for Xbox and Microsoft software (shown) using the virtual currency

At the moment, Bitcoins can only be used to load money into a Microsoft wallet, rather than make direct payments, but this means that people can buy apps for Windows Phones, games for Xbox and Microsoft software (shown) using the virtual currency

WHAT YOU NEED TO KNOW ABOUT BITCOINS

Bitcoin operates as a two-way currency which can be exchanged for dollars, and vice versa.

The notion behind it is to facilitate cheap, anonymous transactions policed by its community of users and is built around trust rather than relying on institutions like governments or banks.

Bitcoin's status as a digital currency is debatable. It is entirely a digital product but is not regulated and it has a limit of 21million, which is predicted to last until 2140.

The finite nature of Bitcoins means it performs more like a commodity, such as gold.

Bitcoin first emerged in 2008 and launched as a network in 2009.

It was created by a hacker whose identity is a mystery, but is known as Satoshi Nakamoto. 

This is thought to be a pseudonym for the person or group who created it.

Each Bitcoin is a piece of computer code that has been generated through very slow computer processing, also known as 'mining'.

Users choose a virtual wallet from one of the various providers which enables them to receive, give and trade coins from other users.

Bitcoin's can be bought from specialist online currency exchanges and online marketplaces such as eBay. 

One member of Reddit's bitcoin community posted: 'It's getting harder and harder for people to think [Bitcoin is] dead/dying/irrelevant/scam/illegal'.

Another said: 'Really ace move. 

'It's clear that under the new CEO, MS has really tried to up its "developer image", become a bit more indie and a bit less corporate.

'But I hadn't expected some senior manager at MS payments to OK this one this soon, before companies like Google or Steam.' 

Satya Nadella, became the company's CEO in February and since then, has focused on services across Microsoft's different platforms.

The firm's willingness to take embrace Bitcoin - ahead of Google and Apple - may help it shed its slow and lumbering corporate image.

The company was a latecomer to the smartphone and tablet market, for example.

It was reported in June that Apple was making a move to accept Bitcoin, but this has yet to be confirmed.

A summer update to the App Store Review Guidelines hinted at the plants when it began allowing apps to accept the virtual currency.

The policy now claims: 'Apps may facilitate transmission of approved virtual currencies provided that they do so in compliance with all state and federal laws for the territories in which the app functions.'

This means Bitcoin could be used for downloads or in-app purchases from the Apple App Store. 



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