Bitcoin Is Still Basically Useless for Making Payments

Citing volatile value, Steam drops Bitcoin support

Valve drops Bitcoin as a Steam payment option

Because Valve has no control over the transaction fees, there are cases when the trasaction fees are sometimes higher than the value of the purchase and this makes the transaction unreasonably costly. Steam customers must also pay for the bitcoin transaction fees. 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. The company said it won't accept the cryptocurrency any longer due to "high fees and volatility" in its value.

Valve is not necessarily done with cryptocurrency even though it has removed Bitcoin as a payment option.

According to steam, the volatility of Bitcoin has been "extreme" in the last few month. You can read the full statement via Valve's official post on Steam.

Even if the value of bitcoin were to go up while the user completes the transaction, and Steam has to refund the difference to the user, the transaction fee must be paid by the user again for the refund.

Transaction fees charged to customers using Bitcoin have surged throughout 2017, Valve says, peaking at $20 last week from a starting of about $0.20 when Steam first started using the currency.

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

"The amount it can change has been increasing recently to a point where it can be significantly different", the game distributor said.

Many are using this as an example of Bitcoin's limitation as a currency, and pointing to other newer cryptocurrencies (like Ethereum or Bitcoin Cash) with newer technologies - which is the reason why Steam's comments are now being flooded with requests for Valve to accept payments from some of these currencies.

For instance, Steam said that bitcoin transaction fees have "skyrocketed this year". "This year, we've seen increasing number of customers get into this slate". Valve says that the company may "re-evaluate whether Bitcoin makes sense for us and for the Steam community at a later date [,]" but now Valve is mostly trying to resolve pending issues with customers impacted by Bitcoins' flux.

The service said it is "working to resolve any pending issues for customers who are impacted by existing underpayments or transaction fees", and that it may accept bitcoin at a later date.

Latest News