Citing concerns over slow confirmation times and rising fees, global payment provider Stripe announced it will be winding down support for bitcoin payments over the next three months. BTC payments will no longer be accepted by Stripe after April.
Calling It Quits for Now
With a rapidly growing global market cap, bitcoin has been making longtime fans more than satisfied with the state of the number one cryptocurrency as 2018 gets underway. Despite the success, though, merchants who facilitate bitcoin payments have begun to react to the growing fees and uncertain payment settlement times that have been plaguing the coin’s network as of late.
An example of this just came from payments leader and longtime cryptocurrency advocate Stripe, who surprised many today when it confirmed that it would be slowly ending support for bitcoin with a final payment date of April 23rd.
Citing concerns over increased transaction confirmation times as well as rising fees, Stripe has decided to move away from Bitcoin but isn’t crossing off digital currency acceptance permanently and even mentions scaling solutions such as the Lightning Network as the potential future answer for faster payments.
Optimistic on Cryptocurrencies
As merchants begin to assess the feasibility of accepting or containing to accept digital currencies, concerns such as whether or not their revenues from bitcoin transactions are worth taking the risk of confirmation lags and increased transaction fees will continue to be brought up.
And despite scaling solutions on the horizon, Bitcoin is at a unique crossroads in its development as global demand has clearly outpaced network scalability and merchants such as Stripe are responding accordingly.
If Bitcoin’s core development team cannot design, test, and scale a solution in a reasonable time, merchants will find other means of payments where they can not only anticipate the final settlement price but where they don’t have to pay crippling fees.
Do you anticipate other merchants will stop accepting bitcoin as a means of payment after Stripe’s recent announcement? Tell us below!
Image via Draglet, Stripe