Wednesday, January 24, 2018

Payment processor strikes blow to Bitcoin's quest towards becoming a serious medium of exchange

On Jan. 24, a company that provides third party processing for over 100,000 businesses that accept Bitcoin as payment has decided to end its ties to the cryptocurrency by the end of April.

Payment processor Stripe has long been a supporter of Bitcoin and the cryptocurrency's quest towards becoming a viable medium of exchange for retail and commerce.  However price volatility, along with slow transactional times and higher fees are just a few of the reasons why Stripe is deciding to bail on the granddaddy of cryptos.

Stripe, the company which helps over 100,000 businesses successfully perform online financial transactions, is to round off its nearly four-year support for Bitcoin payments. 
The move came amid remarks that incredibly high price volatility that the bitcoin has shown recently hampers transactions, makes them too slow and for a big commission fee. Separately, Stripe said Bitcoin users now saw the virtual currency largely as an "asset" to be bought and sold, rather than something a means of exchange. 
"By the time the transaction is confirmed, fluctuations in Bitcoin price mean that it's for the 'wrong' amount," Stripe's product manager Tom Karlo said in his blog. 
Bitcoin transaction fees had also risen "a great deal" resulting in a decrease in demand from Stripe's customers to accept Bitcoin payments, he said. He added that an average fee is tens of US dollars, which is nearly as costly as a bank wire.  
The Stripe payment processor was the first to lend support for Bitcoin back in 2014 and has been with it all through its rises and falls for the past 4 years. 
Now all transactions are due to be stopped by April 23. – Sputnik News


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