On May 2nd, Cheddar, an innovative on-demand cable network, talked with Reddit CEO Christopher Slowe at the North American tech conference “Collision.” While short, the interview is information-packed and useful to understand the planned changes on Reddit concerning cryptocurrency payments and acceptance, as well as the knowledge behind what led Reddit to cancel Bitcoin payments for their premium plans last March.
.@Reddit, which hosts communities for every single cryptocurrency in the world, is hoping to bring back crypto payments to the platform, this time with Ethereum and Litecoin in addition to Bitcoin, according to CTO @KeyserSosa. pic.twitter.com/wkUniMvhex
— Cheddar (@cheddar) May 2, 2018
The decision to stop Bitcoin payments
March 2018 marked the end of cryptocurrency payments for Reddit Gold. While deemed controversial and unpopular, this decision was deeply rooted in logic. As we can see from the interview above, paying $4 for Reddit Gold per month means that a $10 fee would be applied to the transaction. This makes it impossible for Reddit to ask of users to pay using the cryptocurrency. Another reason that led to the abandonment of crypto payments is the fact that Coinbase has performed significant upgrades to their system. Reddit, probably slow to follow got significantly behind the updates to the payment processor.
Sticking with Coinbase
Reddit is very much satisfied with the service they are getting from Coinbase, and they are going to continue collaborating with them to facilitate cryptocurrency payments for the premium plans. This time around we can expect more cryptocurrencies to be available and so far we have a confirmation that Bitcoin, Ethereum, and Litecoin are going to be available for consumers to use as a payment method.
While we don’t have a specified date as to when we can expect these updates for Reddit, we are most likely talking about at least a month before any of the information presented here becomes a reality. The most significant change is the broader acceptance of cryptocurrency, while the primary benefit is the ability to evade unnecessarily high transaction fees, as evidenced by the Bitcoin network when transaction capacity is reached.