As Bitcoin (BTC) is once again making headlines for crossing the $10,000 price point, the world’s premiere multi-cryptocurrency, real-life payments platform Anypay has announced they are disabling BTC from their system. Based in Portsmouth, New Hampshire, Anypay’s co-founder Steven Zeiler said in an announcement today that BTC was “worthless for payments”, now that transactions can be easily canceled.
Originally, when Bitcoin (BTC) launched in 2009, and for several years into its life, one of the major selling points that set it apart from other electronic payments like credit cards was that Bitcoin transactions were irreversible. Once the buyer hit send, there was no way for the buyer to undo it. There was no “authority” like a credit card company or bank that the buyer could contact to have them reverse the transaction. Business owners are very familiar with the concept of the dreaded “chargeback”, where a dishonest customer can use the credit card company’s ability to undo transactions to scam a merchant and receive money back AND keep the product. Chargebacks were impossible under Bitcoin (BTC) and this was a major reason why businesses wanted to accept BTC.
However, midway through its first decade, after its anonymous founder Satoshi Nakamoto disappeared and development was taken over by others who did not share Satoshi’s vision, the newer programmers introduced a “feature” called “Replace By Fee” or RBF. The purported reason for this was to allow a sender – after they’d already sent a transaction – to update the associated fee and help it get through the network faster. However, this also allowed them to cancel the transaction entirely, as long as the transaction had not yet received its first confirmation. This RBF “feature” broke one of the fundamental tenets of the original vision of Bitcoin – irreversible transactions.
For a while, this cancellation “feature” was only accessible through the “full node” Bitcoin Core software, which meant it was relatively tough to use in a real life payments situation. However, as shown by this video here, now more mobile wallets are incorporating the “feature”, which means that accepting Bitcoin (BTC) at point-of-sale is now highly dangerous and increases the risk of fraud. Hence, Anypay has announced they are no longer going to allow Bitcoin (BTC) payments on their platform.
In a video posted today, Zeiler announces that BTC has been disabled on the Anypay Cash Register app until further notice, as he’s had a “final revelation that it’s worthless for payments”. This, after having seen the new video that shows how easy it is now to commit fraud against real-life payment systems using BTC.
While some BTC-only fanatics will be disappointed by the news, the reality is most people don’t use BTC for payments via Anypay’s platform anyway, given BTC’s ridiculously high fees compared to other, more useful cryptos that were designed for payments like Bitcoin Cash (BCH) and DASH or even Bitcoin SV (BSV), which Anypay is now supporting. Plus, when paying with BCH or DASH on Anypay at a real-life business one will usually receive 10% back instantly thanks to Anypay’s “Bitcoin Cash-Back” and “DASH-Back” programs.
I think Anypay has made the right choice here to protect merchants from potential fraud. It’s too bad the Bitcoin (BTC) programmers forced Anypay’s hand, by making BTC less useful over time. Once upon a time Bitcoin was useful for payments, as it was originally intended. Sadly, those days are long gone. Bitcoin (BTC) may still be the king crypto, but if it’s not useful for payments, is it really a currency?