Steam Will No Longer Support Bitcoin As Payment

Published Sunday, December 10, 2017 -
Steam Will No Longer Support Bitcoin As Payment

Watching the volatility of the virtual currency Bitcoin going up to astronomical heights and then diving deep into obscurity has just a few entrepreneurs having a sleepless night or two. Steam, the massively popular gaming store began accepting Bitcoin as payment for games back in April of 2016 but has now stopped accepting payments in the virtual currency because it is too volatile.

Steam engineer Kurtis Chinn wrote in an info blog, "As of today, Steam will no longer support Bitcoin as a payment method on our platform due to high fees and volatility in the value of Bitcoin."

The decision has nothing  to do with the various issues associated with virtual currencies such as the huge energy drain or criminal activity but the massive transaction fees.

Chinn explained, "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. For example, transaction fees that are charged to the customer by the Bitcoin network have skyrocketed this year, topping out at close to $20 a transaction last week (compared to roughly $0.20 when we initially enabled Bitcoin)."

Chinn continued saying more problems are created when the coin plunges, "When checking out on Steam, a customer will transfer x amount of Bitcoin for the cost of the game, plus y amount of Bitcoin to cover the transaction fee charged by the Bitcoin network. The value of Bitcoin is only guaranteed for a certain period of time so if the transaction doesn’t complete within that window of time, then the amount of Bitcoin needed to cover the transaction can change. The amount it can change has been increasing recently to a point where it can be significantly different."

Steam is the major rival of Sony's PlayStation Network as the world's biggest gaming service, with 67 million monthly active players compared to Sony's 70 million active users.




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