Could Microsoft revolutionize the crypto market?

The latest speculation about Microsoft speaks volumes: a crypto leak reveals the tech giant’s possible impact on Bitcoin, Ethereum, XRP and BNB. 

Specifically, details have emerged about Microsoft’s alleged intention to integrate the blockchain segment into its future Xbox. 

See below for all the details. 

The role of Microsoft in the evolving crypto market: what is happening? 

Based on the latest data, we see that the major cryptos, such as Bitcoin, Ethereum, XRP, and BNB, are currently in a sideways trading period as the market prepares for the upcoming $17.7 trillion Wall Street earthquake and is growing rapidly. 

This situation was triggered by the Federal Reserve starting its financial tightening cycle at the end of 2021.

Now, there is a risk that this could negatively impact not only the price of Bitcoin but also the broader cryptocurrency market, valued at $1 trillion, including Ethereum, XRP, BNB and others.

Meanwhile, a sudden reversal in Bitcoin’s fortunes is keeping traders in suspense as Elon Musk prepares to make a surprising move. 

At the same time, some speculations have come in which reveal that Microsoft, the tech giant, is planning to incorporate support for cryptocurrencies in its upcoming Xbox console. 

This news has emerged thanks to internal Microsoft documents that were posted this week on Resetera, a gaming forum. These documents show a roadmap for Xbox dated May 2022, which includes the integration of crypto wallets.

The massive leak was attributed to documents related to the lawsuit filed by the Federal Trade Commission, which aims to block Microsoft’s $69 billion bid to acquire Activision Blizzard, before the transaction is formalized.

What do documents related to Microsoft’s acquisition of Activision Blizzard say 

Microsoft’s Xbox chief Phil Spencer reported that several documents related to the proposed acquisition of Activision Blizzard were accidentally leaked. Spencer pointed out that while this is disappointing, many of these documents are over a year old and that the company’s plans have evolved in the meantime.

The new “ecosystem generation,” which includes consoles, phones, web browsers, a handheld system, PCs and a “cloud console,” as well as support for artificial intelligence and machine learning, is scheduled for release no earlier than 2028 and may undergo further changes.

Spencer expressed his frustration at seeing his team’s work made public in this way, as many things have changed and there are exciting developments both in the present and in the future. 

He also promised that the actual plans will be shared when they are ready.

Meanwhile, rumors and speculation have been circulating about the interest of high-profile companies such as Microsoft, Apple, Amazon, Google, Alphabet, and Meta (ex-Facebook) in implementing support for Bitcoin and other cryptocurrencies.

While large Wall Street financial institutions such as BlackRock and JPMorgan have been cautious in the crypto world, Silicon Valley companies appear to have been swayed by Facebook’s failure to launch its own Bitcoin-based stablecoin.

In 2019, global regulators and central banks collaborated to block Meta’s plans for a private global cryptocurrency, fearing that the company could compete with the Federal Reserve’s economic power if it was allowed to issue a currency for its more than 3 billion users worldwide.

Microsoft reduces investment in AI chips, why?

Recently, Microsoft announced that it would reduce its investment in research and development of artificial intelligence chips, news that jolted the entire technology community. 

A question then arises: does this move signal broader problems in the artificial intelligence industry?

As we know, the artificial intelligence chip market has seen explosive growth, with companies rushing to create specialized hardware to meet the growing demand. 

In this context, Microsoft’s decision to cut investment in this direction seems counter-cultural. However, it is important to understand that market dynamics are not homogeneous, and each player has its own unique strategy.

In fact, Microsoft’s choice may not necessarily signal a crisis in the industry, rather it may represent a strategic move. On the other hand, the tech giant is known for its ability to adapt and diversify. 

With this in mind, scaling back investment in artificial intelligence chips could be interpreted as a redirection of resources to other promising technology areas, such as cloud computing and software development.

In this regard, The Motley Fool, famous for its shrewd analysis of the stock market, recently shared its assessment of Microsoft’s current position. Interestingly, Stock Advisor‘s prestigious team of analysts did not list Microsoft among the top ten stocks recommended for investors at this time.

Although Microsoft’s choice arouses curiosity, it is essential to avoid looking at the entire artificial intelligence sector solely in relation to a single company’s strategy. 

The artificial intelligence landscape remains dynamic, with numerous players making significant investments and progress. 

Indeed, companies such as NVIDIA, Intel, and AMD continue to be at the forefront of innovation and growing presence in the artificial intelligence chip market.