Microsoft News: Bitcoin and the Under-18 Demographic

[Raystonn]

The target market for Bitcoin use by Microsoft is XBox gamers, many of whom are under 18 years of age.  This demographic doesn't have credit cards.  It's very difficult for them to spend fiat online.  Bitcoin can become the defacto savings and payment method for this demographic.  Cash doesn't do them any good, as they can't spend it online.  Bitcoin is the answer.

Microsoft has capitalized on something big here.  The under-18 demographic has no way to legally spend fiat online.  Now they can spend Bitcoin.  Soon the under-18 demographic will begin keeping their funds in Bitcoin, as it's trapped in unusable form when left as fiat.  Bitcoin will grow from this.  Add to this the powerful educational effect of indoctrination at an early age, and we have a very bullish long-term effect for Bitcoin.

[Peter R]

+1

This is a great point, Raystonn.  It is currently difficult for the under-18 cohort to make purchases online.  

And under-18's become over-18's; if Bitcoin's SOV properties were useful to them they may habitually keep a fraction of their wealth in BTC as their income grows.

[Ultros]

But how do they buy bitcoin in the first place?

[riiiiising]

But how do they buy bitcoin in the first place?

Exactly. As things stand now, they pretty much need a banking account. How many 13-year-olds have banking account? Not many.

And what OP fails to mention is, you can already go to any retailer and buy an XBOX Live card for cash, which is then used with Microsoft. Buying a $20 Xbox Live Card at WalMart is a hell of a lot easier than figuring out how to buy bitcoins for the first time, especially if you don't have a bank account.

This move is merely to encourage current holders of bitcoins to spend them with Microsoft. A large portion of bitcoin enthusiasts are nerdish young men, so of course Microsoft will do something like this to target them.

[truetalkci]

But how do they buy bitcoin in the first place?

Exactly. As things stand now, they pretty much need a banking account. How many 13-year-olds have banking account? Not many.

And what OP fails to mention is, you can already go to any retailer and buy an XBOX Live card for cash, which is then used with Microsoft. Buying a $20 Xbox Live Card at WalMart is a hell of a lot easier than figuring out how to buy bitcoins for the first time, especially if you don't have a bank account.

This move is merely to encourage current holders of bitcoins to spend them with Microsoft. A large portion of bitcoin enthusiasts are nerdish young men, so of course Microsoft will do something like this to target them.

and op Raystonn think Microsoft accepting USD from bitpay is going to save the crashing price, how funny is that

[the_sunship]

The community can also tip the young xboxers through changetip. If changetip gains more traction, you could see xboxers posting helpful videos on games or other subjects, and then asking for bitcoin tips.  

Don't underestimate the power of sending a13 year old a few dollars (in bits) to get them thinking about other ways to collect tips.

[LTListener]

But how do they buy bitcoin in the first place?

Exactly. As things stand now, they pretty much need a banking account. How many 13-year-olds have banking account? Not many.

And what OP fails to mention is, you can already go to any retailer and buy an XBOX Live card for cash, which is then used with Microsoft. Buying a $20 Xbox Live Card at WalMart is a hell of a lot easier than figuring out how to buy bitcoins for the first time, especially if you don't have a bank account.

This move is merely to encourage current holders of bitcoins to spend them with Microsoft. A large portion of bitcoin enthusiasts are nerdish young men, so of course Microsoft will do something like this to target them.

I know this is an exception to the rule, but in The Netherlands there is a company where you can buy Bitcoin for very close to market price with a system called iDeal, it works kind of like paypal but differently.
People younger than 18 need permission from their parents to use iDeal. The way it works is that you use a 2 factor authenticator to check your bank account balance online, but this 2 factor authenticator can also be used to authorize a payment directly from your bank account to someone else. This is a pretty brilliant system and has helped me out many, many times, since I don't have paypal. I'm puzzled as to why there are only a few countries that have copied this method of transfer, as it's much better than paypal. Anyways, I'm starting to stray from the topic. iDeal, I don't know why the US doesn't has it.

[Ibian]

But how do they buy bitcoin in the first place?

From that one guy at school who managed to convert some of his money, and then sells it at a 7% markup. Seriously.

[Raystonn]

Localbitcoins... ATMs... Tips...

[CoinFriend]

this company shows an example for the next and younger generation, what is possible with bitcoin. and they generate them self a new capital source!

and for all them of the old generation, who use bitcoin already, it will have an effect also. a new way to purchase XBox games. and maybe a kind of stability on the btc / fiat market.

i think it is a big step for the whole economy.
done by anybody other than microsoft!

and technical interested parents maybe will pay their kids pocket money in bitcoin... i think, they don't need really a bank account.

[Sakarias-Corporation]

They could Work for it.

[Raystonn]

I just found a way to eliminate my need for a bank account.  I discovered Bitwage.  I have signed up and am now testing it out.  The quick description is you direct some of your direct deposit paycheck to Bitwage's checking account.  When they receive it, you get the equivalent in Bitcoin the next day.  Not only does this remove the bank from the loop, but it's much faster than waiting days for Coinbase, and doesn't leave a trail in your checking account showing how much Bitcoin you have.

[Sakarias-Corporation]

I just found a way to eliminate my need for a bank account.  I discovered Bitwage.  I have signed up and am now testing it out.  The quick description is you direct some of your direct deposit paycheck to Bitwage's checking account.  When they receive it, you get the equivalent in Bitcoin the next day.  Not only does this remove the bank from the loop, but it's much faster than waiting days for Coinbase, and doesn't leave a trail in your checking account showing how much Bitcoin you have.

what about Reciving Money from your job ? does it work well to pay bills with ? how will you pay for things at a store ? can you connect a credit card to it ?

[Raystonn]

Sorry, why would I need to connect a credit card to my Bitcoin wallet?  The money from your job goes to a list of direct deposit accounts you specify.  One of them can be Bitwage, which turns it straight into BTC in your own Bitcoin wallet.

[solitude]

Under 18's have little money and what little money they have is usually spent on frivolous bullshit.

If they need to spend money online they can always borrow mom or dads credit card

It's a complete non-factor.  Besides you'd be surprised how many men 18-40 are playing games on xbox.

[2_Thumbs_Up]

But how do they buy bitcoin in the first place?

Why are bitcoin gift cards not a thing?

I think someone like circle should easily be able to team up with a big merchant to sell something that is redeemable for bitcoins. The price could be fixed at either the time of purchase or at the time of redemption.

Give cash -> Get receipt -> Go home -> Redeem bitcoins with code on the receipt

Or better yet, the receipt could be a paper wallet itself, and be swept by any app you want. Although the incentives are probably stronger for a company that wants to get people to sign up for their wallet.

[Raystonn]

But how do they buy bitcoin in the first place?

Why are bitcoin gift cards not a thing?

I think someone like circle should easily be able to team up with a big merchant to sell something that is redeemable for bitcoins. The price could be fixed at either the time of purchase or at the time of redemption.

Give cash -> Get receipt -> Go home -> Redeem bitcoins with code on the receipt

Or better yet, the receipt could be a paper wallet itself, and be swept by any app you want. Although the incentives are probably stronger for a company that wants to get people to sign up for their wallet.

This already exists.

[SanMerryDro]

Microsoft seems to be no official announcement

[Raystonn]

You mean like this?
http://blogs.microsoft.com/firehose/2014/12/11/now-you-can-exchange-bitcoins-to-buy-apps-games-and-more-for-windows-windows-phone-and-xbox/

[mmortal03]

But how do they buy bitcoin in the first place?

Why are bitcoin gift cards not a thing?

I think someone like circle should easily be able to team up with a big merchant to sell something that is redeemable for bitcoins. The price could be fixed at either the time of purchase or at the time of redemption.

Give cash -> Get receipt -> Go home -> Redeem bitcoins with code on the receipt

Or better yet, the receipt could be a paper wallet itself, and be swept by any app you want. Although the incentives are probably stronger for a company that wants to get people to sign up for their wallet.

This is one type of feature on some Bitcoin ATMs. If you don't have a wallet ready on your phone, it can print you a paper wallet.