Published: Wed, January 24, 2018
Culture&Arts | By Darrell Mcdonald

Stripe is giving up on bitcoin as a payment method

Stripe is giving up on bitcoin as a payment method

The platform, he writes, has seen a major decrease in BTC transactions.

Furthermore, bitcoin was dealt another blow today after USA payments company Stripe advised that it will stop processing bitcoin transactions on its network by April 23 2018.

As bitcoin has become more popular, "transaction confirmation times have risen substantially; this, in turn, has led to an increase in the failure rate of transactions denominated in fiat currencies", Karlo wrote.

In short, bitcoin's price fluctuates so often that one side of a transaction inevitably gets screwed.

"For a regular bitcoin transaction, a fee of tens of United States dollars is common, making bitcoin transactions about as expensive as bank wires", he says. In a line that will be sure to inflame bitcoiner conspiracy theorists on Reddit, Stripe said it "may add support for Stellar (to which we provided seed funding) if substantive use continues to grow". The company is entering a "wind-down" phase with Bitcoin support, working with affected users to ensure a "smooth transition" before they stop processing the currency completely on April 23rd, 2018. As a result, bitcoin has become "less useful for payments".

Stripe product manager Tom Karlo released a gentle-yet-cutting blog post this afternoon outlining the company's decision to break up with the world's largest cryptocurrency.

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But it said its decision to end support for Bitcoin payments did not mean it was giving up on cryptocurrencies all together. "And of the businesses that are accepting bitcoin on Stripe, we've seen their revenues from bitcoin decline substantially". It's possible that Bitcoin Cash, Litecoin, or another bitcoin variant, will find a way to achieve significant popularity while keeping settlement times and transaction fees very low.

Carlo added: "We're interested in what's happening with lightning and other proposals to enable faster payments, more broadly, ethereum continues to spawn many high-potential projects".

"There are a lot of efforts that we view as promising and that we can certainly imagine enabling support for in the future", it said.

Steam's operator Valve Software faced issues trying to reconcile payments in Bitcoin given the value could fluctuate so wildly while a payment went through.

If Stellar was to be added, it would mean that potentially nearly 40,000 online retailers across the world would be able to accept the cryptocurrency for online transactions.

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