Twitch.tv is a live video streaming platform which is owned by Twitch Interactive. It is a subsidiary of Amazon. Recently it was reported that Twitch.tv has bid adieu to Bitcoin and Bitcoin cash. They will not serve as payment methods anymore on Twitch.tv.
This news has become a hot topic and has quickly become the talk of the town. This course of action has raised many questions on whether this decline of cryptocurrencies as a payment method- a single incident or is it a growing trend. The ditching of the payment methods through cryptocurrencies has naturally affected the user base from many countries. The change was seen to become effective since two-three weeks.
There were no announcements before this decision was implemented; neither there are any explanations by far about the reasons behind the step taken by Twitch.tv. This has left the users to end up with guesswork. Some think that due to the decline in demands, this action was taken. The Twitch community has mixed response and is not looking any optimistic. For instance, on the social platform- Reddit, many users expressed their unhappiness and dissatisfaction over the company’s action without any prior notice. Other users went up to the extent of canceling their Twitch. Tv subscriptions altogether and also wrote complaints to Twitch.tv.
It was only during last year in Jan that Twitch.tv announced the integration with crypto payment methods. At that time it added Bitcoin to its payment options. Other payment options available on the platform were/ are- Apple Pay, PayPal, Amazon Pay, and Coinbase too. Back in Jan in 2018, the announcement on Twitter read as-
Put those ? ? gift cards from grandma to good use by subscribing to your favorite streamer! We take these and more. Just click “Show More Methods” on the Payment Information screen. https://t.co/cyIJ4Fcnr9 pic.twitter.com/a1QmAg4A6R
— Twitch (@Twitch) January 12, 2018
Twitch as a company with its worldwide presence is always in the limelight. Slightest of the move is well observed and get a frequency response and has a strong effect on the user community. Like last year with its introduction to the cryptocurrency integration as a payment method stirred the user base towards the crypto payments possibility. In a way, it opened the door to the cryptocurrency to those users who still needed exposure to the cryptocurrency. There are still many users, as per Redditors, who were aware of the crypto payment methods on Twitch.tv, due to low key to almost zero communication by the company on this matter. Twitch is certainly not the first company to allows Bitcoin for payment method and then to ditch it. With the company’s huge presence, the impact of the ditch will likely to be wide as well. Currently, it is difficult to measure the financial impact this decision will have, yet it won’t be deeply dramatic, given the size of the company.
Reddit community also pointed at another reason that might have made the company to sieve out Bitcoin and Bitcoin Cash. It is the volatile nature of these assets. On top of it, the bearish tendency of the market does not allow these assets to become stable. On the other hand, Bitcoin consumes a lot of energy and involves high costs which render the asset as unsuitable for daily needs payments.
Not only Twitch.tv came to this decision; even Microsoft decided to say bye to the Bitcoin payments, last year. Also, Steam- the popular online gaming platform despite being open to crypto payments didn’t approve of Bitcoin due to the reasons cited above.