Online payments firm Stripe ends support for bitcoin

Corbis via Getty Images

So on Tuesday, Stripe argued that it was ending support for bitcoin. Payments take longer to process among the cryptocurrency mining industry that earns bitcoins for providing the computing power to unlock new coins while updating the digital ledgers of transactions.

The company - which operates in 25 countries, including Australia - said it would "stop processing Bitcoin transactions on April 23" this year.

Payment processing company Stripe announced this week that it will no longer accept Bitcoin as a payment method on its platform, citing the currency's volatility, slow transaction times and ever-increasing processing fees.

As Stripe's Tom Karlo points out, the truth is that BTC has evolved to become an asset rather than a currency, and is simply unsuitable for transactions that need to resolve in seconds or minutes at the outside. By the time transactions are completed, he added, the price of the volatile cryptocurrency had often changed.

Stripe indicated that customers as well as businesses have lost interest in bitcoin payments, with fewer and fewer use cases seen for accepting or paying with bitcoin.

In addition to providing a payments platform for big clients such as Lyft, Facebook and Target, Stripe has been supportive of cryptocurrencies for several years. The company was among the first to adopt Bitcoin back in 2014, and now, it is one of the first to drop it altogether. "For a regular Bitcoin transaction, a fee of tens of U.S. dollars is common, making Bitcoin transactions about as expensive as bank wires". "Transaction confirmation times have risen substantially", Karlo explained.

International Monetary Fund head: Current recovery of global economy - cyclical
In addition, it predicts real GDP in the US will be 1.2 percent higher by 2022 than it would have been without tax reform. The IMF further said that Asia will grow at 6.5 percent in 2018-19, which is the same pace as in 2017.

"By the time the transaction is confirmed, fluctuations in bitcoin price mean that it's for the "wrong" amount", the payment processor said.

Because of this, we've seen the desire from our customers to accept Bitcoin decrease.

Gaming company Steam stopped accepting bitcoin payments for similar reasons in December.

Instead, their vision for bitcoin's future is for most transactions to shift to off-chain payment technologies like Lightning, freeing up capacity for high-value payments on the bitcoin blockchain itself. "There are a lot of efforts that we view as promising and that we can certainly imagine enabling support for in the future".

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.

Related news:

Hot News

isis-killer-beheading-video-story-top Magnitude 7.9 natural disaster hits in Gulf of Alaska, tsunami warnings issued
Jan 24, 2018 - 11:28
Initially, the quake prompted a tsunami warning for a large section of Alaska's coast and parts of Canada. Residents in Alaska have reported that it's the strongest one that they have seen in nearly 20 years.

isis-killer-beheading-video-story-top Apple may discontinue iPhone X within a year of launch, says analyst
Jan 23, 2018 - 01:46
Any potential "super cycle" would kick off in the fall of 2018 following the launch of three new iPhones . Offering iPhone X at a lower price point could be "negative to product brand value", in Kuo's view.

isis-killer-beheading-video-story-top A Raging Fight Exists over Syria Policy within the Administration
Jan 23, 2018 - 01:46
The YPG have bitterly complained about Russian Federation withdrawing its modest presence in Afrin as Turkey prepared to attack. Assad's military has threatened to shoot down Turkish fighter jets if they conduct cross-border bombing raids.

isis-killer-beheading-video-story-top Highway 101 expected to reopen by Monday morning
Jan 22, 2018 - 01:52
The finding of Calderon's body has risen the death toll to 21 as crews continue to search for the last possible survivors.

isis-killer-beheading-video-story-top China rebukes U.S. military for alleged close encounter in South China Sea
Jan 22, 2018 - 01:51
The South China Sea has crucial shipping lanes, rich fishing grounds and potential oil, gas and other mineral deposits. The Philippines, Vietnam, Malaysia, Taiwan and Brunei also have overlapping claims in the waters.

isis-killer-beheading-video-story-top Kerber KO's Sharapova in Melbourne
Jan 22, 2018 - 01:50
Garcia will need to recover from her three-setter to face No. 17 seed Madison Keys , who was a 6-3, 6-4 victor over Ana Bogdan. Kerber though acknowledges she has to be at her best to beat Sharapova , who is looking hungrier than ever for success.

isis-killer-beheading-video-story-top Struggling Southampton battle to a point against Spurs
Jan 22, 2018 - 01:50
On another day they would have taken all three points here; the victories certainly need to start mounting up soon. Southampton started brightly, pressing Tottenham in a style they themselves have become known for.

isis-killer-beheading-video-story-top Armenia PM to participate in World Economic Forum in Davos
Jan 22, 2018 - 01:48
The Indian Ambassador also mentioned that two Yog-gurus have arrived here from India , who will be giving training sessions here. Prime Minister Modi will host a dinner for the leading global chief executive officers at the WEF Summit in Davos on January 22.

isis-killer-beheading-video-story-top Trade Kemba Walker? Don't be ridiculous, Charlotte Hornets
Jan 21, 2018 - 00:18
Kemba is second on the Hornets all-time scoring list and he leads the team this season in points , minutes and assists per game. On a side note, #WojBombs and #ShamWows (Shams Charania) alerts get me so excited, but that is neither here or there.

isis-killer-beheading-video-story-top Global stocks mostly higher on strong Chinese growth
Jan 20, 2018 - 05:17
Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., January 12, 2018. The S&P 500 closed down 9.82 points, or 0.4%, to 2,776, with eight of the 11 main sectors finishing in negative territory.

isis-killer-beheading-video-story-top Parents of 13 siblings found beaten and shackled plead not guilty
Jan 20, 2018 - 05:15
When the 17-year-old was asked if there was medication or pills in the home, she did not know what medication or pills were. Police were first alerted to the crimes at the Turpin residence when one of the siblings managed to escape from the house.

isis-killer-beheading-video-story-top IBM revenue rises after 22 quarters of dwindling earnings
Jan 20, 2018 - 05:12
The company will have an annual effective tax rate of 16 percent, plus or minus 2%, inclusive of the tax reform, Kavanaugh said. This is the first year-over-year increase since the first quarter of 2012, just after Rometty became CEO .

isis-killer-beheading-video-story-top ICE Planning Potential Immigration Sweep, Prepare To Arrest 1500 People
Jan 19, 2018 - 02:31
A spokeswoman for the city's police department said Chief Anne Kirkpatrick "supports and values Oakland as a sanctuary city". Homan slammed Democrat Gov. "SB 54 does not prevent ICE from doing its work", he said.

isis-killer-beheading-video-story-top England cricketer Ben Stokes charged with affray over nightclub fight
Jan 19, 2018 - 02:30
But the European Central Bank has cleared him to play in New Zealand despite the serious charge of affray. England are in Australia for the five-match ODI series in which the second will be played on Friday.

isis-killer-beheading-video-story-top Nintendo gets your creative juices flowing with Nintendo Labo
Jan 19, 2018 - 02:27
A second kit, called the "Robot Kit", lets you assemble your own cardboard exoskeleton to control a virtual robot. GameStop shoppers can buy the Variety Kit and the Robot Kit today.