Steam Announces It Will No Longer Support Bitcoin

Steam drops Bitcoin support

Valve drops Bitcoin as a Steam payment option

Bitcoin has risen in value for years, but the increase in the past several months has been especially explosive.

Valve began accepting Bitcoin on its Steam service in 2016 to accommodate global users that might not have access to traditional payment options.

6, the company will no longer accept payments in the cryptocurrency due to a mixture of high fees and volatility in the price of bitcoin.

Valve said the recent dips and spikes in Bitcoin were signs that the "degree of volatility has become extreme".

In a blog post, Steam said: "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)".

Steam said it had no control over the high transaction fees, which are charged by the Bitcoin network.

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In a blog post, the company revealed that the cryptocurrency's fees have become too high for it to be accepted on the platform, as they lead to "unreasonably high costs for purchasing games with bitcoin".

The problem stems from the fact that Bitcoin's value is guaranteed only for a short time when making purchases with the cryptocurrency.

At the time, the decision to take bitcoin was positioned as a way to serve emerging markets where payment options like credit cards may not be widely available. With Bitcoin values changing so rapidly, the amount of Bitcoin needed to cover a purchase can change significantly between the time a purchase is initiated and when it's completed. The solution is no longer feasible, as additional transactions incur more costly transaction fees, and may not immediately solve the problem as bitcoin's value could keep on fluctuating.

The issue is that the Bitcoin price of a game can experience significant changes in merely a matter of minutes.

Steam's original policy was to refund the original payment method back to the buyer or request additional Bitcoin to cover the change in value.

The reason for this is inherent to the way the Bitcoin protocol works; the number of bitcoins is controlled by having computers generate them via so-called "mining" operations, which are essentially complicated math problems. However, the post did end by stating that Steam may re-evaluate Bitcoin in the future and decide then whether or not it is suitable for the company and its community.

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