Why Steam Terminated Support For Bitcoin As Payment Method

Citing volatile value, Steam drops Bitcoin support

Citing volatile value, Steam drops Bitcoin support

Due to the fanfare surrounding digital currencies past year, Steam began accepting Bitcoin as an official method of payment for its games and services.

This news comes on the heels of the 1.0 release of the Lightning Network Specification, a technology that could potentially solve any issues Valve's game distribution platform might have with BTC. The company said it won't accept the cryptocurrency any longer due to "high fees and volatility" in its value. According to Valve, transaction fees have exploded from their original cost of 20 cents to roughly $20, a 100x increase, over the course of the past year.

The explanation continued: "Unfortunately, Valve has no control over the amount of the fee".

"These fees result in unreasonably high costs for purchasing games when paying with Bitcoin", Valve said in a statement. The speculative frenzy has at times created massive lag in the already inherently limited speed of transactions across the Bitcoin network and jacked up processing fees. Even though volatility remains problematic, removing transaction fees could make purchases in cryptocurrency much more palatable for consumers. "The high transaction fees cause even greater problems when the value of Bitcoin itself drops dramatically".

"The amount it can change has been increasing recently to a point where it can be significantly different", the game distributor said. Fees have skyrocketed since the beginning of the year.

Bitcoin continues to soar in price, but one company isn't impressed with its recent success.

At this point, it has become untenable to support Bitcoin as a payment option.

Steam will no longer be accepting Bitcoin.

Valve began accepting Bitcoin on its Steam service in 2016 to accommodate worldwide users that might not have access to traditional payment options. In early September, Bitcoin was almost worth $5,000 per unit, but the closing of BTC China (due to new rules from government regulators) saw a significant dip in the currency's value. Basically, if the value of bitcoin changes while a customer is finalizing an order, the order will either need to be refunded or Valve must ask the customer to transfer more bitcoin to cover the purchase. Valve's move was part of a larger acceptance of the digital currency, which is now accepted by more than 100,000 merchants worldwide, including Microsoft, Dish and Subway. However, Steam may re-evaluate whether or not Bitcoin makes sense to them and the Steam Community.

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