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Steam will no longer support bitcoin due to "high fees and volatility"

09 December 2017

Valve explains that when it initially enabled bitcoin payments, the transaction fee was at roughly $0.20, but now it is close to $20. Those fees are never more than a couple of bucks. Those fees then have to be shouldered by gamers making purchases on Steam, and the total cost to consumers could be even higher if the value of bitcoin dips in the meantime. For Bitcoin, however, the cryptocurrency market takes a fee when a Bitcoin owner initiates a transaction.

Bitcoin continued to rise in value this week and looks set to break the $15,000 barrier soon. The speculative frenzy has at times created massive lag in the already inherently limited speed of transactions across the Bitcoin network and jacked up processing fees.

Some customers adding bitcoins had even been caught out a second time as the value changed again. Bitcoin has gone from less than $1000 Dollars to over $13,000 in 2017, and investment interest is high. As you can imagine, this can be particularly annoying for users that transfer a certain amount of the cryptocurrency, only to discover that this amount is no longer sufficient because its value has dropped. And these ups and downs cause significant logistical problems for a company trying to process purchases.

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The value has recently become very unstable and has been known to drop in value by as much as 25% over just a few days.

It noted that value is only guaranteed for a short time.

He said that the volatile fees with Steam purchases can come from timing delays associated with confirming transactions on the Bitcoin blockchain, which is constantly being updated but can suffer from network congestion.

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For example, transactions can often get bottlenecked, so some users have suggested expanding the network's capacity.

"The amount it can change has been increasing recently to a point where it can be significantly different", wrote Chinn.

Steam's original policy was to refund the original payment method back to the buyer or request additional Bitcoin to cover the change in value. Its volatility and transaction costs are a common sticking point for those looking to use it as a currency, yet the possible solutions to these pitfalls could imperil the decentralization that makes bitcoin appealing in the first place. But it says that it's not done with the digital coin for good. "We may re-evaluate whether Bitcoin makes sense for us and for the Steam community at a later date", the post adds.

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Steam will no longer support bitcoin due to