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BTC Loses Steam, High Fees and Volatility to Blame

07 December 2017

Today, with Bitcoin surging past $12,000 per coin, Valve has announced that "Steam will no longer support Bitcoin as a payment method on our platform due to high fees and volatility in the value of Bitcoin". In the meantime, it's still working with customers who were affected by the recent rise in Bitcoin value whether it's with existing payments or transaction fees. In a blog post, Valve explained that bitcoin transaction fees have gone up to almost $20 per transaction last week, "compared to roughly $0.20 when we initially enabled Bitcoin". Valve has no way to control these fees, which can raise the costs of games to unreasonably high amounts that have to be shouldered by customers.

Valve added: "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". "This year, we've seen increasing number [s] of customers get into this state", the post states. Bitcoin values are only guaranteed for a certain window of time, and if for some reason a transaction isn't completed within that window, the amount required to complete the purchase can change.

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When it does happen, as Valve says has been becoming more common, Valve issues a refund for the amount. There are some major companies, such as Microsoft and DISH, accepting bitcoin payment, but few others have followed suit.

Bitcoin valuation has become a problem recently as well, as the value fluctuates wildly over very short spans of time. When a gamer requests a refund, it left a gray area as to whether they should be refunded the USA dollar equivalent of their transaction or if they should just have their Bitcoin returned to them.

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While it is pulling the plug on accepting the cryptocurrency for now, Valve isn't ruling it out completely, with it concluding the blog post saying that it may "re-evaluate whether Bitcoin makes sense for us and for the Steam community at a later date". For Bitcoin, however, the cryptocurrency market takes a fee when a Bitcoin owner initiates a transaction.

Steam has dropped support for Bitcoin. Those caught making cryptocurrency payments face faces of 150 million to 200 million Vietnamese dong, or roughly $6,000 to $9,000.

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Bitcoin is a derivative of the blockchain.

BTC Loses Steam, High Fees and Volatility to Blame