Steam Drops Bitcoin, Citing Volatility And High Fees

Mindy Sparks
December 7, 2017

Now, due to high transaction fees and volatility of the currency, Valve is dropping support for the virtual payment option.

When Steam initially enabled Bitcoin transaction fees were roughly 20 cents, now it can be upwards of $20. If the user then needs to either pay more money, or receive a refund from Steam, they are hit with another costly transaction fee from Bitcoin.

Since the value of Bitcoin is "only guaranteed for a certain period of time", if a transaction is not completed within that time frame, the value of the agreed upon BTC can fluctuate greatly, leaving either customers or Valve to cover the difference. "In the past few months we've seen an increase in the volatility in the value of Bitcoin and a significant increase in the fees to process transactions on the Bitcoin network", the company stated. Regarding the fees, Valve pointed out that the transaction fee charged to the customer using Bitcoin rose from 20 cents when Valve started accepting it to nearly $20 today. Bitcoin has had something of a volatile rise throughout the latter half of 2017, and now that's making some people, and companies, a little frustrated. When a gamer requests a refund, it left a gray area as to whether they should be refunded the United States dollar equivalent of their transaction or if they should just have their Bitcoin returned to them. Steam did not return a request for comment by deadline, and its announcement did not say how long it has been accepting bitcoin.

Earlier this week, the UK Treasury announced tighter regulation of the cryptocurrency.

Bitcoin valuation has become a problem recently as well, as the value fluctuates wildly over very short spans of time.

It doesn't seem to matter that Bitcoin is priced at almost $13,000 and it has more hype and interest in cryptocurrency than any previous point in human history, but Valve has just stopped accepting Bitcoin in Steam. Yay.

Steam will no longer be accepting Bitcoin.

JPMorgan boss Jamie Dimon said in September that Bitcoin was a fraud and only used by criminals and North Korea.

Without full community support, the fork will not take place.

Valve's shirking of bitcoin is another development in a broader debate about the usefulness of the cryptocurrency. CEO of Riot Blockchain John O'Rourke explains the important distinctions between the two technologies.

Other reports by Iphone Fresh

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