Stripe, a payment platform, has shared that it will cease taking Bitcoin payments as of April, stating that the cryptocurrency is too volatile and the transaction times take too long, among many other reasons. Despite the logical reasoning behind the decision, crypto enthusiasts are sure to be upset about this latest announcement that will surely hurt Bitcoin even more.
Anyone who has had experience using Bitcoin frequently can attest to its flaws. One of the biggest issues is that entering a transfer into the blockchain can take hours, which is a serious hassle for merchant transactions, made even worse because during the delay the value of Bitcoin often fluctuates, causing the merchant to end up with the wrong fiat dollar amount for their product.
Along with this problem, the fees have risen as Bitcoin’s value has escalated, which is another reason many merchants are unwilling to accept the digital money.
As Stripe’s Tom Karlo explains, the fact is that Bitcoin has evolved to become an asset, rather than a currency, and is just not suitable for transactions that need to be resolved within seconds, or at least minutes. He goes on to share that the platform has already seen a big decrease in Bitcoin transactions.
Stripe began accepting Bitcoin back in 2014, shortly after the coin first exceeded $1,000 in value and investors really began taking a closer look at it. However, even though Bitcoin may soon be out of the picture, the company insists that it is still very optimistic about the cryptocurrency market, and has cited a few different currencies it is interested in that include Ethereum, Bitcoin Cash and Litecoin, to name a few. Karlo also says the company is considering support of Stellar, in which Stripe owns a stake.
Extreme Bitcoin enthusiasts may argue that Bitcoin should remain a choice for people who want to use it, and that the cost to continue accepting it is not much in the long run, and that denying it as a form of payment could aid in further sealing its fate of no longer being used for transactions at all.
However, Stripe remains optimistic about digital money overall, and is merely pointing out that Bitcoin may have run its course, no longer able to keep up with the needs of the market when it comes to transactions. According to Stripe, its support of Bitcoin payments will cease on April 23rd. Until then, people will still be allowed to use their Bitcoin.