Bitcoin Spurned By Stripe

Marcus Newton
January 25, 2018

"Bitcoin itself may become viable for payments again in the future", Stripe said.

Stripe, one of the leading global payment processing services, has made a decision to drop Bitcoin support and will stop processing Bitcoin payments by end of April 2018.

Stripe's product manager, Tom Karlo, wrote that bitcoin has evolved into an asset rather than a currency and that fewer customers have a desire to use it, mostly because of the rise in transaction fees.

This isn't a death knell for bitcoin, but it is a bad sign for the digital currency's viability in payments.

Stripe said longer transactions times, rising fees and huge price fluctuations have all damaged the appeal of bitcoin. The extreme price volatility and hefty transaction fees make dealing in Bitcoin a high-wire tightrope act without a net. Stripe is a mobile payments company and they have said that the reason they are ending support for the cryptocurrency is because it is now more of an asset than a method of making payments. The company's management stated that in the next three months it would encourage its customers to move away from Bitcoin payments and after that it would not accept Bitcoin payments any longer. "The fact that Stripe, the first major payments company that supported Bitcoin, is now scrapping such support is an interesting case in point".

Bitcoin became extremely expensive in 2017 in terms of both its value and how much it costs to use.

Bitcoin Spurned By Stripe

But it seems to me that Stripe is merely being realistic and embracing the ideals of decentralized currency that bitcoin has advanced, though which it failed to attain. This then means it has considerable influence on people's perceptions, remember, the success or failure of Bitcoin (and all cryptocurrencies) is highly dependent on the people's perception.

In a blog post, the payments processor wrote that it will fully end support for the largest cryptocurrency by April 23, 2018. All of these issues combined have caused a substantial decrease in Bitcoin payments, Stripe said.

So now questioning is, to what extent will this decision by Stripe affect the value of Bitcoin?

He added: "Starting today, we are winding down support for Bitcoin payments". "OmiseGO is an ambitious and clever proposal; more broadly, ethereum continues to spawn many high-potential projects".

Other cryptocurrencies are on their radar, though. The announcement also indicated an interest in Lightning network, which is under testing and development, and a mentioned Stellar (the company behind Lumens (XLM)) as a possible candidate for future support.

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Other reports by MaliBehiribAe

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