Valve announced today that they are no longer going to accept bitcoin as payment for games on Steam. They say that the cryptocurrency is too volatile over the last few months and it’s just not worth the trouble to them or their customers to continue using bitcoin as payment. Furthermore, until bitcoin can speed up transactions, and the market settles down, it wouldn’t surprise me to see others take this same stance.
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. For example, transaction fees that are charged to the customer by the Bitcoin network have skyrocketed this year, topping out at close to $20 a transaction last week (compared to roughly $0.20 when we initially enabled Bitcoin). Unfortunately, Valve has no control over the amount of the fee.