Steam Officially Abandons Bitcoin

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Steam has officially parted ways with Bitcoin as a way PC gamers can pay for gaming content. The Valve platform has cited the high fees and business conduct concerning Bicoin as their reason for separation. The Steam team's growing concerns over the fluctuation in Bitcoin value and their business practices were all taken into consideration.

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). 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. The high transaction fees cause even greater problems when the value of Bitcoin itself drops dramatically.

Historically, the value of Bitcoin has been volatile, but the degree of volatility has become extreme in the last few months, losing as much as 25% in value over a period of days. This creates a problem for customers trying to purchase games with Bitcoin. 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.

The normal resolution for this is to either refund the original payment to the user, or ask the user to transfer additional funds to cover the remaining balance. In both these cases, the user is hit with the Bitcoin network transaction fee again. This year, we’ve seen increasing number of customers get into this state. With the transaction fee being so high right now, it is not feasible to refund or ask the customer to transfer the missing balance (which itself runs the risk of underpayment again, depending on how much the value of Bitcoin changes while the Bitcoin network processes the additional transfer).

At this point, it has become untenable to support Bitcoin as a payment option. We may re-evaluate whether Bitcoin makes sense for us and for the Steam community at a later date.

We will continue working to resolve any pending issues for customers who are impacted by existing underpayments or transaction fees.

-- The Steam Team


Posted:
Related Forum: PC Gaming Forum

Source: http://comicbook.com/gaming/2017/12/06/steam-officially-abandons-bitcoin/

Comments

"Steam Officially Abandons Bitcoin" :: Login/Create an Account :: 11 comments

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XboxPosted:

Good to see them part ways.

MazePosted:

Smart move, plus no one would wanna buy a steam game with btc i would imagine

MushroomElmPosted:

ODST
MushroomElm Probably a good idea..Bitcoin recently hit 19K USD today. Briefly, sure, but it did tip over. Won't be surprised to see it hit 20K soon.

Anyways, anyone with a full bitcoin at this point can afford the fee. $20 is nothing when compared to the cost of the actual coin..More than 16K as of writing this comment.


It's not a problem with the price going up, its a problem with the price severely dropping quickly. So yes bitcoin hit $19,000 USD today for a brief second and then plumeted to $15,500 USD. That's about a 20% value drop in the span of ONE DAY. Imagine every US dollar you have right now suddenly only being worth 80 cents. A currency this volatile is too extreme to keep track of and make sales on.


I can agree with that. Bitcoin is very unpredictable. A month, or so, ago when they wanted to go through some merger that failed that had dropped 50% of the value. Going from almost 9K t0 4K before going back up to now.

I would love to have invested, but now it's almost pointless...

ODSTPosted:

MushroomElm Probably a good idea..Bitcoin recently hit 19K USD today. Briefly, sure, but it did tip over. Won't be surprised to see it hit 20K soon.

Anyways, anyone with a full bitcoin at this point can afford the fee. $20 is nothing when compared to the cost of the actual coin..More than 16K as of writing this comment.


It's not a problem with the price going up, its a problem with the price severely dropping quickly. So yes bitcoin hit $19,000 USD today for a brief second and then plumeted to $15,500 USD. That's about a 20% value drop in the span of ONE DAY. Imagine every US dollar you have right now suddenly only being worth 80 cents. A currency this volatile is too extreme to keep track of and make sales on.

MushroomElmPosted:

Probably a good idea..Bitcoin recently hit 19K USD today. Briefly, sure, but it did tip over. Won't be surprised to see it hit 20K soon.

Anyways, anyone with a full bitcoin at this point can afford the fee. $20 is nothing when compared to the cost of the actual coin..More than 16K as of writing this comment.

SYREEPosted:

Eh, kind of sucks that they accepted it when it wasn't popular but now that it is they're abandoning it. I mean for good reason but still.

HuxPosted:

I had some money in a bitcoin wallet, ready for Steam. Then I noticed the charge to withdraw it lol. Good job i think.

BelieberPosted:

Not suprising because the average person doesn't use bitcoins to buy things!!

DecyPosted:

Damn a $20 fee... that's messed up. This doesn't surprise me lol.. Bitcoin has become more of an investing platform than a online currency platform

ChatPosted:

I don't see many people use bitcoint, I mean sure people do, but it's mostly for purchasing accounts and what not online, never really looked into using it as a thing to purchase items with other than accounts etc.