Reddit’s decision to remove Bitcoin as a payment option could be setting the stage for another cryptocurrency plunge. Users learned that they could no longer purchase premium membership on the discussion website.
Reddit confirmed saying the decision was made in light of an “upcoming Coinbase update.” Details of the update were not however divulged although it could be linked to an earlier announcement by Coinbase that it would upgrade its merchant service.
“The upcoming Coinbase change, combined with some bugs around the Bitcoin payment option that were affecting purchases for certain users, led us to remove Bitcoin as a payment option,” a Reddit admin wrote when pressed for details.
On the positive side, the discussion website said it was examining the demand for the payment method and the option might very well make its way back.
“We’re going to take a look at demand and watch the progression of Coinbase Commerce before making a decision on whether to reenable,” a Reddit admin known as emoney04 posted.
Reddit’s premium subscription allows users an ad-free experience on the site.
If the decision is reversed, it could help relieve the market of mounting pressure on many sides ever since the beginning of this year.
Coinbase and Reddit partnered way back in 2013 in what Coinbase CEO then termed “a large step forward,” when he announced that Reddit would start accepting Bitcoin payments for Reddit Gold.
Coinbase, the largest cryptocurrency exchange in the world has recently announced it would launch Coinbase Commerce in a bid to improve its merchant service.
“We recognize that this decision may be disruptive to Coinbase Merchant Tool customers, and we’re here to help ensure a smooth transition. We suggest exploring Coinbase Commerce and if the product meets your needs, we recommend creating a Coinbase Commerce account by April 30th, 2018 to continue accepting cryptocurrency payments,” Coinbase said in a blog post.
This move might have as well led Reddit to stop accepting Bitcoin payments.
PayPal and Credit Card Payments Remaining Options
Users now remain with the option of using PayPal or credit cards to make their payments.
Reddit is a top internet site with a huge following and the development is definitely having a profound impact on prices.
Bitcoin Plunges Again
Bitcoin’s price is now struggling below $8000 after stabilising towards the end of Tuesday’s trading. Its value even hit $8500, an impressive recovery after the Twitter announcement that it was banning cryptocurrency ads saw the digital asset dip below $8000.
By the time of going to press, Bitcoin’s price was hovering around $7800 on major exchanges. It has now lost almost a fifth of its value in the last one month.
The total market capitalisation for cryptocurrencies has now declined by over $30 billion in under a week to settle at around $306 billion according to CoinMarketCap.
Before a slew of regulatory scrutiny and bans by technology companies like Facebook, Google and recently Twitter, the market capitalisation stood at nearly $400 billion even after the February crash.
Market in the Red
The market is generally in the red although some coins have started to stabilise. Ethereum has lost nearly 3% on the last 24 hours. More than half of cryptocurrencies have seen significant losses in the past 48 hours.
Bitcoin’s trade volume stands at just over $5 billion in the last 24 hours with the Japanese Yen being the dominant fiat traded with BTC at 54%.
USD follows at a distant 22% followed by Tether at 13%. Total trade volume for all cryptocurrencies stands slightly below $14 billion.
About 10% of the total cryptocurrency market capitalisation was wiped off after the Twitter ban.
Bitcoin has been struggling to stay above $8,000 on a general bearish sentiment. Bitcoin was at its peak in mid-December 2017 when its value rose to nearly $20,000 amid a frenzy for digital currencies globally.