The payment processor for business Stripe, has announced that it is not supporting Bitcoin anymore on its platform. The main problem has been that customers have been moving away from bitcoin to other faster and cheaper alternatives. After this, Bitcoin will not be accepted anymore by Stripe.
Stipe Discontinues Bitcoin Payments
The payment processor with a $9 billion dollars’ valuation has decided to stop accepting Bitcoin. Vendors using this platform where able to show the nice ‘Bitcoin Accepted Here’ logo, that now must be taken away if they do not have another platform to accept these payments.
During the last year we have seen how Bitcoin was increasing in usage and also in price. But as more individuals started to use this cryptocurrency, higher fees and transfer times made of it a not so good method to exchange value.
Stripe wrote a blog post about this situation that reads as follows:
“Transaction confirmation times have risen substantially; this, in turn, has led to an increase in the failure rate of transactions denominated in fiat currencies. (By the time the transaction is confirmed, fluctuations in Bitcoin price mean that it’s for the ‘wrong’ amount.) Furthermore, fees have risen a great deal. For a regular Bitcoin transaction, a fee of tens of U.S. dollars is common, making Bitcoin transactions about as expensive as bank wires.”
Because of this situation, customers of the platform have been losing the desire to use Bitcoin as a means of payment. According to the company, empirically, there are fewer and fewer use cases for which accepting of paying with Bitcoin makes sense.
“Therefore, starting today, we are winding down support for Bitcoin payments,” the company explains. “Over the next three months we will work with affected stripe users to ensure a smooth transition before we stop processing Bitcoin transactions on April 23, 2018.”
Bitcoin Payments Decreasing
Different companies are deciding to stop accepting Bitcoin payments. For example, Steam, the online game service has stopped accepting payments made with the famous virtual currency. And in a similar way to Stripe, the company behind Steam explained that the high volatility in the price of Bitcoin has pushed the company to discontinue Bitcoin payments.
Microsoft has also communicated that they will not support bitcoin payments anymore. The problems are the high fees, long transaction times and volatility.
Another interesting thing to mention is that All About Burgers, a fast food restaurant in Washington DC, accepts bitcoin payments but nobody ever used it to purchase anything. The reporter Matt Fuller, has written on Twitter that when he wanted to pay with Bitcoin, the employee didn’t know how to process the payment.
I go to some burger shop and see they accept Bitcoin.
Neat, I think, knowing the transfer fees would probably be, like, $20.
So I ask the cashier how I would pay in Bitcoin.
“Oh, I don’t know,” he says. “They never taught us. No one’s ever asked.” pic.twitter.com/ovqUaatox6
— Matt Fuller (@MEPFuller) January 21, 2018
Let’s mark that this is not the shop’s fault. They have been trying to accept Bitcoin payments, but the fees are extremely high in order to buy small things. If for a hamburger that costs $10 dollars someone must pay $20 dollars’ fee, then it has no sense to use Bitcoin.
Clearly, Bitcoin is suffering from the lack of scalability that it has. The developer team that is behind this cryptocurrency is trying to implement SegWit and the lightning network. But it is not so easy to do it. We will ned to wait a little bit more in order to have a healthy Bitcoin that will allow us to spend and use it as in the past.