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Why Companies are refusing Bitcoin as mode of Payment?

Jan 13, 2018 Posted /  5147 Views

Why Companies are refusing Bitcoin as mode of Payment?

Roughly around six months back, the news was scattered and propelling amongst the media that the companies were contemplating to merge Bitcoin into their payment system to enhance their operations. Nevertheless, in the quick-paced cryptocurrency ecosystem, circumstances change drastically.

Presently, there is a multitude of organizations and groups either shifting their ways apart from Bitcoin or arranging for a complete U-turn. Microsoft lately proclaimed that subsequent to their three years of relationship, it would suspend admittance of Bitcoin in its service. Nonetheless, it did preserve its own ground following the announcement and exercised its own steps to: “ensure lower Bitcoin amounts would be redeemable by customers.”

Steam, the gaming platform, also barred its operations with Bitcoin and dismissed it as a payment mode in the beginning of December last year. Their deductions and discernments resonated with the prevailing consensus, indicating that they were to wavering from the hefty fees and unbelievable volatility. They also marked them as the core issues behind decision. The company mentioned that Bitcoin still needs to fix these issues until which its acceptance as a regular payment method is less likely.

It is not simply the view of those circumcising the crypto market, nevertheless, The North American Bitcoin Conference set to be held in Miami next week is no longer continuing with Bitcoin for last-minute tickets.

The two-point setback

It has been an ossein of negotiations with Bitcoin since its charges sprang with an aggregate of about $2, and presently the transactions fetchings being ascended to $20. And, all this comes at the moment when people started viewing Bitcoin as something more than a digital currency.

The North American Bitcoin Conference remarked on its website that network clogging up and manual processing affected the decision to discontinue the acceptance of payments in cryptocurrencies.

"We have, and always will, accept cryptocurrencies for our conferences, up to fourteen days before the event," the organizers wrote. "However, due to the manual inputting of data in our ticketing platforms when paid in cryptocurrencies, we decided to shut down Bitcoin payments for last minute sales due to print deadlines."

Being called "Digital Gold"

It appears that plausibly after Bitcoin’s shift in categorization following to SegWit2x abandonment to launch and consequently advance Bitcoin on a monster rally that was seen by the end of the year 13 times mightier in comparison to when it commenced at the beginning of the year.

Bitcoin was finding obstacles as to apprehending itself as a digital currency, or as digital gold, and because of the characteristics of the cryptocurrency, it was established democratically that SegWit2x would not be adopted for a number of reasons.

It was deemed that SegWit2x would encourage the drop in costs and expedite the network; nevertheless, Bitcoin’s value as a repository of value would presumably catch a hit.

Furthermore, with concern in Bitcoin continually being pushed for the mainstream recognition and imagined of being the digital currency to be an asset that developed exponentially, it appeared that the user base and the community were enthusiastic to see it progress towards being so-called digital gold.

The temporary solution

The extremely flexible trait of Bitcoin’s progression determines that it could still enhance as quite beneficial and viable currency if the community chooses so. The newest change that the enthusiasts are keenly awaiting is the Lightning Network which would hugely diminish down the debate of Bitcoin scalability.

The Lightning Network would complete a smart contract script into the Bitcoin network that would unlock private payment channels connecting peers as they transact with. Furthermore,  all the private payment channels will become part of this network and separately every peer, which would possess one channel open to the Bitcoin Blockchain.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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Tags: Refusing Bitcoin payment Digital Gold

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