Bitcoin crackdown: Stripe pulls support for cryptocurrency payments
- Author: Anthony Vega Jan 25, 2018,
Jan 25, 2018, 1:13
"And, of course, there'll be more ideas and technologies in the years ahead", he added.
Fintech startup Stripe was one of the first major payments companies to support Bitcoin payments back in 2014, but now the firm has announced that it is ending support for cryptocurrency payments, citing expensive transaction fees and long wait times.
Karlo said the payments processor is "very optimistic" about the market as a whole and has already identified other virtual currencies that it could potentially support in the future.
Simultaneously, transaction times with Bitcoin have become terribly long thus increasing the failure rate. "For a regular bitcoin transaction, a fee of tens of US dollars is common, making bitcoin transactions about as expensive as bank wires".
"Huge swings in price make the ideal case for not using Bitcoin as a method of payment", said Daniele Bianchi, a finance professor at Warwick Business School and cryptocurrency researcher.
As a result, Stripe's customers have become less and less interested in accepting bitcoin payments.
According to Stripe product manager Tom Carlo, Bitcoin is no longer fit for goal as a currency for transactions that need to take place in a speedy manner.
Fundamentally, Carlo argues that bitcoin has become less useful for payments. It allowed residents from more than 60 different countries to pay merchants on Stripe's network using bitcoin.
Stripe seemed to take care to paint the overall bitcoin project as a victim of its own success rather than imply that cryptocurrency is dead.
"Because retailers have very narrow margins and when you have a bitcoin bouncing up and down by 15 percent over a couple weeks' period, that can be the difference between profits and losing money on every sale", Schulman was quoted as saying. "Bitcoin has evolved to become better-suited to being an asset than being a means of exchange", Stripe wrote. It's worth noting that Stripe won't be dropping support for all cryptocurrencies, however. According to the company, Bitcoin transactions will end on April 23, 2018. We may also think of steller if its use continues to grow while Bitcoin Cash and light coin would also be highly considered.
Diehard bitcoin types may complain that the option should be remain, that it costs little to accommodate those who choose to use this method, and that this may be a short-sighted, self-fulfilling prophecy that further seals the fate of BTC as a transaction medium.