Stripe Strips Bitcoin
Stripe, a leading global payment processor, is stripping Bitcoin out of its world. This makes sense as Stripe is not a bank. It only makes money when there is a transaction in its ecosystem. Yes, when there is a transaction, Stripe takes a small commission, about 1.5-3% depending on volume. So packing all the money in its ecosystems would not necessarily help its bottomline when the company cannot invest it due to regulations.
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.
This is not really surprising. I have noted that if Bitcoin is for store of value, it makes sense. But if you plan to use it for payment, that is a weak application. Just as gold and cowries can be assigned values, anyone can believe in anything it wants. In some parts of Africa, people worship snakes, others have their trees. In Asia, we have people that worship mountains. In America, it is obvious, the god is dollars.
So, believing on Bitcoin is not necessarily irrational [actually it is, lol] provided it is for store of value, and not for payment. Yes, that is why the word "currency" in “cryptocurrency” is a problem. If they had left it as crypto, there would not have been a problem
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
