Despite Bitcoin’s growing popularity – or hype, depending on your point of view – the online gaming platform Steam has removed it as a payment option.
Steam, the largest web games store in the United States and Europe, announced on Thursday that it would no longer accept cryptocurrency for any purchases across its regions.volatile,
The platform attributed the decision to high transaction purchases, which reached $20 (£15) per transaction last week, up from 20 cents (15p) when Bitcoin first appeared, as well as volatile pricing.
The latter is currently a highly visible issue, with Bitcoin recently reaching $14,000 and, with it, the world’s headlines. Since its inception, the cryptocurrency has increased 1,300%, and many market analysts believe it is a bubble waiting to burst.
The decision reflects a broader concern for Bitcoin, whose goal of becoming a widespread decentralized payment system appears shaky given the dual impediments of longer transaction times and higher transaction costs (owing to the sharp increase in popularity and surge in data-processing).
As a result, despite its skyrocketing value, cryptocurrency is rarely used for everyday transactions. The costs at Steam were particularly high; in cases of refund, customers were required to pay the transaction cost twice: once upon purchase and again when receiving refunds for original payment.
Another major issue is price volatility, with the currency’s value changing so quickly and frequently that the amount of Bitcoin required for purchase can change between the time a purchase is initiated and completed.]
As a result, it is “untenable [for Steam] to support Bitcoin as a payment option,” according to the company. However, the dream is not yet dead: “At a later date, we may re-evaluate whether Bitcoin makes sense for us and the Steam community.”
Not forgotten despite being snubbed.