Steam, the Digital Game Distribution Platform Will No Longer Accept Bitcoins.
In April 2016, the digital distribution platform and games, Steam, began to accept BTC, at that time the cryptocurrency was priced at about $ 450, as time passes it is raised to a large scale its value, which has made the platform can not continue accepting BTC because it has become too volatile and expensive. In a publication of the company’s blog it was revealed that Bitcoin’s fees have become too high to be accepted, as they lead to “excessively high costs to buy games with Bitcoin.”
“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.”
Although the majority of users who purchase products with Bitcoin are aware of how the network works, Steam has been concerned about its volatility, because the value of the cryptocurrency is still changing rapidly and the amount of Bitcoin used to buy a game only is guaranteed by the market for a limited period of time, if the customer does not complete the purchase during that time the amount of BTC needed to acquire the game could be very different.
Steam’s blog post adds that the platform usually solved the problem by either refunding users, or asking them to transfer additional funds to cover the remaining balance. 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. For these reasons, Steam’s post ends stating that “at this point, it has become untenable to support bitcoin as a payment option.” The company adds that it may re-evaluate if accepting the cryptocurrency makes sense at a later date.
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