Today, Valve announced that Steam, the gaming platform will no longer accept payments in BTC because of the high fees for transactions and the volatility of cryptocurrency.
Valve says that the transaction fees that are disclosed to payment system Bitpay, last week exceeded $20. For comparison, last spring when Valve started accepting cryptocurrency as payment, charges per transaction was 20 cents.
Platform Steam has started to accept bitcoin in April 2016, when the Euro was trading at $450. Ironic that Valve complains about the high volatility of Bitcoin, if they actually kept the bitcoins and immediately sell them, they would have made a fortune.
“Historically, the price of BTC has been volatile, but in recent months volatility has become extremely high, with the loss of as much as 25% of the cost for several days. This creates a problem for customers trying to purchase the game.”
While volatility is certainly problematic from the point of view of cash flow and business planning, in the long term, Bitcoin will rise in price. If the sellers have retained at least some of their bitcoins, it would bring them greater profit.
It is clear that Valve complain about transaction fees:
“In the last few months the price of bitcoin has varied sharply, and fees for transactions in the Bitcoin network has increased dramatically. In particular, the Commission which takes users of the Bitcoin network, this year soared, reaching the last week $ 20 per transaction (compare this figure with the 20 cents that was charged when we just started to accept bitcoin). Unfortunately, Valve can not affect the cost of commissions. They lead to high costs for the purchase of the game if the user is paying with bitcoin. The high cost of commissions causes even more problems, is sharply reduced when the rate of Bitcoin”.
Valve are not alone in their grief; many complain of the high Commission. The developers of Bitcoin, abandoning the proposed increase in the size of the unit, are pinning their hopes on “Lightning Network”. The transaction will move outside the network, theoretically maintaining safety while reducing fees and the time of confirmation.
Many in the industry digital currency advocate the use of Bitcoin as a digital gold, not as payment method. Max Keiser believes that if the Bitcoin will be used as a repository of values, its price can reach $100 000, while other cryptocurrencies will be used for payments. Kaiser wrote:
“Dash has secured its status as a means of payment, but Bitcoin is increasingly being referred to as Gold 2.0. Those who are afraid of the problem of scaling of network bitcoin, I suggest to use Dash to make payments to Bitcoin Core could focus on developing Gold 2.0”.