Stripe, the first major company to support bitcoin payments, announced today it will Ditch Bitcoin Support.

Stripe, the firm which helps more than 100,000 businesses do financial transactions online, is to scrap support for Bitcoin payments.

It said Bitcoin users now saw the virtual currency largely as an "asset" to be traded, rather than something to make payments with. Fewer online merchants wanted to accept the cryptocurrency, it added. Rising fees and longer transaction times as a result of price fluctuations also lessened its appeal, Stripe said.

In 2014, it became the first major payments company to support Bitcoin payments. At the time Stripe said it hoped Bitcoin would become a way for people in places with low credit card penetration or prohibitively high credit card fees to do transactions online. But the virtual currency was now "better-suited to being an asset than being a means of exchange," it said.

Stripe Blog

The Stripe Blog has more details on Why Stripe is Ending Bitcoin Support.

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 price mean that it’s for the “wrong” amount.) Furthermore, fees have risen a great deal. For a regular Bitcoin transaction, a fee of tens of U.S. dollars is common, making Bitcoin transactions about as expensive as bank wires.

Because of this, we’ve seen the desire from our customers to accept Bitcoin decrease. And of the businesses that are accepting Bitcoin on Stripe, we’ve seen their revenues from Bitcoin decline substantially. Empirically, there are fewer and fewer use cases for which accepting or paying with Bitcoin makes sense.

Therefore, starting today, we are winding down support for Bitcoin payments. Over the next three months we will work with affected Stripe users to ensure a smooth transition before we stop processing Bitcoin transactions on April 23, 2018.

Despite this, we remain very optimistic about cryptocurrencies overall. There are a lot of efforts that we view as promising and that we can certainly imagine enabling support for in the future. We’re interested in what’s happening with Lightning and other proposals to enable faster payments. OmiseGO is an ambitious and clever proposal; more broadly, Ethereum continues to spawn many high-potential projects.

RECOMMENDED ARTICLES

How to Buy a Pizza Not

In the above video, The Wall Street Journal attempted to use Bitcoin in the real world to buy things. They ordered a Pizza. It took 4 hours to confirm the transaction and the fee was $76.

Bitcoin has zero use as a transaction currency. It's only use is speculation.

Mike "Mish" Shedlock

Speculators Throw in the Towel on Gold

Long Liquidation: Large specs reduced long gold bets and increased short gold bets. Small specs increased longs & shorts

Bitcoin Supporters Cannot Answer One Simple Question

What would happen to the price of Bitcoin if the US did not allow merchants and banks to make Bitcoin transactions?

Three Major Credit Card Companies Ban Bitcoin Purchases

Three credit card companies banned cryptocurrency purchases on Friday and Saturday. They do not want the risk.

Bitcoin Near Support, Bitcoin Cash Crash: Where to from Here?

Technically speaking, the chart of Bitcoin looks god awful. Each bounce has been feeble compared to the prior decline.

Bitcoin Finally Finds Support at the $4,000 Level: What's Next?

Bitcoin briefly fell below $4,000 then started a rebound. Where to from here?

Buy and HODL Forever, Legendary Short Seller Throws in the Towel

Buy and HODL Forever, Legendary Short Seller Throws in the Towel

Criminals Drop Bitcoin for Monero

Criminals now prefer Monero over Bitcoin because Bitcoin can be traced.

Bernie Sanders Throws in the Towel: Victory is Impossible

Bernie Sanders finally did what I expected a couple weeks ago: Admit the setup was impossible and drop out.

Gold Bell Rings: Vanguard Throws in the Towel on Precious Metals and Mining Fund

Vanguard just threw in the towel on a Metals and Mining Fund. It morphs into a Global Capital Cycles Fund.