Économie

Huge Payment Stripe Processor Is Bailing on Bitcoin

Huge Payment Stripe Processor Is Bailing on Bitcoin

Photo: Getty In addition to providing a payment platform for big customers Like Lyft, Facebook, and Target, Strike has been supportive of cryptocurrencies for several years. On Tuesday, Stripe reiterated its support for a viable digital currency, but said that bitcoin just is not cutting it. Going forward, Stripe will no longer accept bitcoin as a payment method. In 2014, Stripe was the hot new start that has been made easier than PayPal. It attracted VC funds from the most influential players in the tech world, including the founders of PayPal. The company’s CEO Patrick Collison told Recode That Stripe would be the first major payments to accept bitcoin, in part, because of its universality. “Bitcoin is something that anyone can get ahold of,” he said at the time. He added, “It can not be important in five years.” In the meantime, Stripe has grown into a major force with a $ 9.2 trillion valuation, and bitcoin seems more important than ever. But according to Stripe, it’s just not important as a currency. In a post blog, the company wrote that slow transaction times and hefty fees mean that bitcoin is not very useful for its customers. From the announcement: 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 mean that it’s for the “wrong” amount.) Furthermore, fees have risen a great deal. For a regular Bitcoin transaction, a fee of U.S. dollars is common, making Bitcoin transactions about as expensive as bank wires. Because of this, we’ve seen acceptance of Bitcoin decrease. And of the businesses that are accepting Bitcoin on Stripe, we’ve seen their income from Bitcoin decline substantially. In short, bitcoin’s price fluctuates so often that one side of a transaction inevitably gets screwed. Strictly thought to take care of the whole world Bitcoin project is a victim of its own success rather than imply that cryptocurrency is dead. The explosion of interest price of bitcoin up by more than a thousand percent, but it is also slowed transaction times and increased costs considerably. This page is only available in the “bitcoin” area. block size . Bitcoin’s core developers are stuck to the old ways, they are lobbying for integration of the Lightning Network that should speed things up, and opportunists have created spinoffs with faster transaction times. Stripe is not endorsing any of these options as the future, instead, it is elected to congratulate bitcoin on its success as a “novel, ambitious project” that has done very well. The US Securities and Exchange Commission has Elected to view cryptocurrencies as a commodity, for today, and Stripe seems to be in the same boat. “Bitcoin has evolved to become better-suited to being an asset than being a means of exchange,” Stripe wrote. But Stripe is likely leaving the door open for the future, shouting out the possibility that it might be a viable currency in the near future. In a line that ‘ll be sure to inflame bitcoiner conspiracy theorists on Reddit, Stripe said it “may add support for Stellar To be published in 2014 Stellar is a non-profit blockchain system focused on money transfers via text message. Stripe’s announcement is another nail in the coffin for Bitcoin as a means of, ya know, paying for goods. It follows Valve’s decision to stop accepting the cryptocurrency on the gaming platform and visa’s move to freeze the accounts of Bitcoin debit card providers. Microsoft also rattled the markets when it stopped taking bitcoin payments. At this point, the writing is on the wall for most companies. Bitcoin functions as a sort of “store of value,” or proof of concept for the blockchain, but it is not a currency. [ Stripe ]

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