Reddit was one of the first mainstream businesses to offer payment options with bitcoin.
Back in 2013, reddit began offering bitcoin for its Gold membership program, which at the time gave it a some major popularity.
Recently however Reddit has chosen to eliminate this payment method. They have stated that they are eliminating it due to bugs in their payment system as well as claiming it due to “exorbinant transaction fees”.
Given the fact that transaction fee’s of bitcoin are in the pennies while just 3 months ago they were over $25 per transaction, this hardly makes any sense.
It seems more likely, Reddit doesn’t want to raise any fuss with a company that has become a corporate giant that has changed the way it is doing business.
Coinbase has recently changed to Coinbase Commerce. They announced users have until May 31 to switch to this new platform. Further they announced as of April 30, they will withdraw all merchant tools.
Reddit has relied on these coinbase services to accept payments so although they have not said as much, it’s entirely possible this is the reason for cancelling their bitcoin options.
Reddit has quickly retracted their Bitcoin policy and it is unknown as to whether Gold memberships will be tied to the user’s real identity in the future. If this is the case, it is very likely reddit will lose many customers who have supported bitcoin and who rely on its anonymous nature to use reddit.
Reddit has made no attempt to satisfy users with suggestions of accepting bitcoin through any other payment processors nor have they suggested that they are looking into other more anonymous coins like zcash or monero.
Overall the future looks grim for gold users of reddit who used this payment option.
Some have taken up a new stance that this just shows all social media companies are being privately forced into this practice.
The claim is that now Facebook, Twitter, Google and Instagram have stopped cryptocurrency advertising and now reddit is no longer accepting it as payment is the proof that its time to move all social media to decentralized blockchain technology.
Some are saying this is an end to all of the social giants that we currently see today, others are saying this is just evidence of bitcoin’s death.
The future is still very uncertain in this cryptocurrency and blockchain industry.