Almost two years ago, Valve announced that Steam would accept Bitcoin as a payment option. Now, due to high transaction fees and volatility of the currency, Valve is dropping support for the virtual payment option.
"As of today, Steam will no longer support Bitcoin as a payment method on our platform," announced a Steam Blog post regarding the matter. The post elaborated by saying that, "In the past few months [Valve's] seen an increase in the volatility of the value of Bitcoin and a significant increase in the fees to process transactions on the Bitcoin network."
Bitcoin has been making its way into the news cycle again as of late due to the volatility of its value. The prices of Bitcoin have been exploding as of late with one bitcoin equal to 13,416 USD as of this writing. The problem is that these prices have been changing at an extremely fast rate, sometimes in as little as 24 hours.
That means a Bitcoin transaction that could take hours to process, might also mean that someone paying with Bitcoin can end up paying more or less than they expected when the value changes during payment processing. Something that Valve mentions in its blog post.
When it does happen, as Valve says has been becoming more common, Valve issues a refund for the amount. However, that's another Bitcoin transaction fee that the users have to take, a fee that's been on the rise. "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)"
As a result, Steam is now dropping Bitcoin as a payment option. Valve says that the company may "re-evaluate whether Bitcoin makes sense for us and for the Steam community at a later date[,]" but currently Valve is mostly trying to resolve pending issues with customers impacted by Bitcoins' flux.