Bitcoin keeps rising in price, as it has hit $17,000 lately, but not everybody is happy with this situation. Some people want bitcoin slow down, not out of hate or fear, but because they want to make sure that the price of their product stays the same and they don’t have to deal with the currency exchange.
The massive digital distribution company, Steam, has (to the chagrin and angst of many gamers across the gaming landscape,) decided to pull the bitcoin as a payment from their popular gaming platform.
Yes, this has definitely ruffled gamers. There may have even been a few casualties of PCs, TV monitors, and PS4s as gamers in a fit of fury threw things around.
The parent company of Valve does not want to have to deal with the various high fluctuations in price that is associated with bitcoin, calling it “untenable” to continue to allow it as an acceptable form of payment.
The company announced this new occurrence via a blog post. The blog post went into detail about the increased volatility in the value of bitcoin over the past few months, as well as an increase in fees to process transactions on the Bitcoin Network. These two characteristics of the currency combined together added more headaches than what the company wanted to deal with, so, they had to part ways. They went on to compare the transactions of bitcoin earlier this year to now and found a vast difference. Earlier this year, one would be able to process a transaction for the low price of 0.20, but now, they are seeing that the cost has risen to a whopping $20.00 or more! The increase in fees is, of course, due to the significant increase in the rate of transactions and is a problem that is being dealt with by the network, but it is, indeed, a growing pain at the current moment.
The company has an issue with the fact that they have no control over the transaction fee, which makes the customer experience of purchasing games of a much lesser quality than it should be. The increase in fees would result in customers paying a higher price for games when paying with bitcoin.
They are also preparing for a potential decline in the value of the virtual currency and want to make sure that they are more in control of the user experience.
“Historically, the value of Bitcoin has been volatile, but the degree of volatility has become extreme in the last few months, losing as much as 25% in value over a period of days. This creates a problem for customers trying to purchase games with Bitcoin. When checking out on Steam, a customer will transfer x amount of Bitcoin for the cost of the game, plus y amount of Bitcoin to cover the transaction fee charged by the Bitcoin network. The value of Bitcoin is only guaranteed for a certain period of time so if the transaction doesn’t complete within that window of time, then the amount of Bitcoin needed to cover the transaction can change. The amount it can change has been increasing recently to a point where it can be significantly different.”
Users, of course, were not too happy with this. They have stated things like “Steam is making a BIG mistake,” and, “Let’s boycott Steam.” Others say to go with LTC.
What’re your thoughts on Valve pulling the virtual currency?