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Steam drops Bitcoin support

Steam drops Bitcoin support

Steam, which is owned by the video game developer Valve, cited the "high fees and volatility" associated with the popular cryptocurrency.

The bitcoin network is charging close to $20 per transaction, Steam claims in its announcement, adding that's far more than the $0.20 it was charged when it initially enabled bitcoin. "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)", Valve wrote. "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", the company stated.

Moreover, Valve said that "The high transaction fees cause even greater problems when the value of Bitcoin itself drops dramatically".

At a time when the whole world is going insane over bitcoin, Steam has made a decision to pull the plug on bitcoin transactions because of network congestion, price volatility and exorbitant fees.

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That's one of the reasons why Valve is no longer accepting Bitcoin as a payment method.

Steam announced back in 2016 that it had partnered with Bitcoin, and its service Bitpay, to allow gamers to purchase games on Steam using the Bitcoin currency.

Bitcoin valuation has become a problem recently as well, as the value fluctuates wildly over very short spans of time.

Many organizations are still reluctant to trust blockchain technology, however others have found good use cases for it apart from Bitcoin. After giving customers a payment time window of several hours for their transaction to confirm on the Bitcoin blockchain, the value of the coin could have already significantly changed. On Jan. 1 this year, bitcoin was priced at just under $1,000.

Valve might be backing out of Bitcoin support for now, but it said that it might revisit the issue and its impact on the company and the community in the future. This created a poor user experience and also had the side effect of requiring the buyer to pay a second Bitcoin network fee when sending additional currency.