As of March 1st 2014 - finally - Microsoft is killing MS Points and bringing in local currencies as the only payment method for Xbox Marketplace related product. We're not sure if Bitcoin counts.
Says the company, "As early as March 1, 2014 we’ll add to your Microsoft account an amount of currency equal to or greater than the Xbox stores value of your Microsoft Points, and your Microsoft Points will be retired."
The information continues, "You’ll immediately be able to use your new funds, in addition to other current payment methods available in your region, to purchase a variety of content on your Xbox 360 or Xbox One, the Windows Store on a Windows 8.1 tablet or PC, and the Windows Phone Store on a Windows Phone 8.
"You can also choose to transition your Microsoft account to local currency at any time, on Xbox One or Xbox 360 before we transition your account for you by redeeming a Microsoft Points card or Xbox Gift Card or initiating a purchase."
You can see how many MS Points you have by heading over here.
But bear in mind that the money Microsoft is replacing your accounted points for has an expiration date. "The funds we put into your account at the time of the transition will expire on June 1, 2015, however, the currency you purchase and add to your account after the transition will not expire. Microsoft Points codes you received as part of Xbox Live Rewards, promotions, or contests will retain their original expiration dates after your account transitions."More info here.