We have some bad news for you out of the Steam world as Valve announced that Steam is no longer accepting Bitcoin as a payment option. That is definitely bad news for those who enjoy using cryptocurrency. It was only about two years ago that Valve added the Bitcoin payment option to Steam. It has not even been an option for very long. We have all of the latest news coming from Valve on why the company is choosing to drop Bitcoin support on Steam.
Steam Ends Bitcoin Support for Payments
Valve sent out a memo talking about how Bitcoin has been highly volatile in the past several months. The fluctuations in the value of Bitcoin lately. There are also high service fees that seem to be only increasing as time moves on. The fees related to cryptocurrency have gone up significantly in the past several months. Valve said that when Steam first began using Bitcoin as a payment option, the fees were about $.20.
Now, the fees are nearing $20 per transaction regardless of which platform you are using the currency on. Within two years, the fees as you can see have become much larger than people first anticipated. Valve also said that the company cannot control these fees, which means people on Steam are paying higher prices for video games using Bitcoin as the payment option.
When the value of Bitcoin drops, as it has been doing lately, it also makes the fees seem outrageous. Just in the last few months, the cryptocurrency has lost and gained values rather quick. It lost more than 25 percent in value in just a couple days. Just this week though, the price has jumped up to $12,000 for each Bitcoin.
A jump of more than $1,000 in just one day, which shows the volatility of Bitcoin right now. Valve said that when the prices change like this, it makes it difficult to continue using the cryptocurrency as a payment option on Steam. Between the price of the game being based on the value of Bitcoin and the fees associated with using it, the cryptocurrency is just no longer a good option for the PC gaming platform.
Bitcoin Support Dropped on Steam as Volatility Continues
The volatility of this cryptocurrency should really be nothing too surprising as most people agree that the cryptocurrency has seen some high-highs and low-lows lately. Since the volatility is so great, it can really impact how much you are paying for a game on Steam. You might end up paying double of what the real price of the game is if you use the cryptocurrency. There are also times where the value is high enough that you end up paying less than what the retail price of the game is. That is not happening as often now though, since the transaction fees of using the cryptocurrency are skyrocketing.
Typically, Valve would ask for an additional payment from the customer or would refund the overpayment when the changes in Bitcoin have occurred. Of course, you can image the headache that this is causing for both Valve and those on Steam overall. When you are trying to resolve a case, such as overpayment or underpayment, that is where the problem is. Those transaction fees associated with Bitcoin get to be very expensive for both parties involved. It does not make sense to ask for an overpayment of something like $4. Especially when there is going to be a $20 fee associated with that.
Most people will be reluctant to provide the additional funds for the game when they know they will be charged a lot more for the purchase. It also makes it difficult if someone is trying to use another payment option to cover the remaining portion of what is owed to Steam. For Valve, it is also difficult to justify reimbursing someone $6. That is true when the company will be charged nearly $20 for sending the overpayment. Either way you go, both sides are having issues when it comes to the volatility of Bitcoin and using it for payment. Valve concluded that Bitcoin might come back as a payment option in the future. Right now, though, it is just not worth supporting this cryptocurrency due to the volatility.