If you are not living under a rock you already know at least one or two things about the newest stars on the internet – Blockchain and Bitcoin (traded as BTC). There are public listed companies nowadays which added Blockchain to their name and became 300% more valuable in the span of just few days. The absolute harsh reality is that 95.89% of Bitcoins are owned by 3.47% of the wallets (September 2017 stats) this meaning at the end of the day that the owners of the wallets can manipulate the price of Bitcoins.
Also, for a transaction of $5 in Bitcoin equivalent the fees are $20 in average which makes a daunting task for BTC to be mass adopted in retail. If you also add the fact that it takes hours to even days to have a transaction confirmed then you simply understand that Bitcoin failed big time in becoming a mass adopted currency. The major payment platform Stripe announced recently that will stop processing Bitcoin transactions on April 23, 2018. Stripe staff anounced this on the blog: “Over the past year or two, as block size limits have been reached, Bitcoin has evolved to become better-suited to being an asset than being a means of exchange. Given the overall success that the Bitcoin community has achieved, it’s hard to quibble with the decisions that have been made along the way. (And we’re certainly happy to see any novel, ambitious project do so well.)
This has led to Bitcoin becoming less useful for payments, however. 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.” Read here the entire article on Stripe’s blog!