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Valve Cashing Out of Bitcoin

Not sure if this confirms Half-Life 3, or just that GabeN is Satoshi Nakamoto, but Valve announces they are no longer accepting Bitcoin as payment on Steam. Here's word why they are bailing on the volatile cryptocurrency:

As of today, Steam will no longer support Bitcoin as a payment method on our platform due to high fees and volatility in the value of Bitcoin.

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. These fees result in unreasonably high costs for purchasing games when paying with Bitcoin. The high transaction fees cause even greater problems when the value of Bitcoin itself drops dramatically.

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.

The normal resolution for this is to either refund the original payment to the user, or ask the user to transfer additional funds to cover the remaining balance. In both these cases, the user is hit with the Bitcoin network transaction fee again. This year, we’ve seen increasing number of customers get into this state. 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).

At this point, it has become untenable to support Bitcoin as a payment option. We may re-evaluate whether Bitcoin makes sense for us and for the Steam community at a later date.

We will continue working to resolve any pending issues for customers who are impacted by existing underpayments or transaction fees.

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21 Replies. 2 pages. Viewing page 1.
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21. Re: Valve Cashing Out of Bitcoin Dec 7, 2017, 23:32 Mr. Tact
 
Based on Blue's headline I was guessing this was going to be about how Valve had done some bitcoin mining years ago and was selling everything in their wallet. Guess not...  
Truth is brutal. Prepare for pain.
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20. Re: Valve Cashing Out of Bitcoin Dec 7, 2017, 15:44 Armengar
 
paysafe cards are invisible. they are only as good as their PIN. you exchange cash for them and can yransfer the PIN as you see fit. Steam accepts paysafecard. same principle.  
Its not the cough that carries you off but the coffin they carry you off in.
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19. Re: Valve Cashing Out of Bitcoin Dec 7, 2017, 13:50 Kxmode
 
Slick wrote on Dec 7, 2017, 05:14:
Kxmode wrote on Dec 6, 2017, 22:09:
All currencies are fiat. However, BitCoin is like the loot box of fiat currencies.

No.

XBT is more like a commodity. There is a fixed supply, and they're impossible to duplicate.

A pair of definitions.

Def 1. Fiat money is a currency that a government has declared to be legal tender, but not backed by a physical commodity (like gold, corn, and oil). The value of fiat money springs from the relationship between supply and demand rather than the value of the material that the money is made of.

Def 2. A commodity is a raw material or primary agricultural product that can be bought and sold, such as copper or coffee. It is a useful or valuable thing, such as water or time.

Going forward...

Point 1. BitCoin has no intrinsic commodity value.

Point 2. BitCoin is similar to government-issued legal tender, but unlike paper money, BitCoin isn't a tangible thing, so it has no intrinsic physical value.

In the most real sense, BitCoin is Monopoly money without the feeling of Monopoly money.
 
Avatar 18786
 
William Shakespeare's "Star Wars" Act I, Scene 4: CHORUS: And now, dear viewers, shall our play go to \ A Planet stark and drear for our next scene. \ Imagine sand and rocks within thy view. \ Prepare thy souls - we fly to Tatooine!
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18. Re: Valve Cashing Out of Bitcoin Dec 7, 2017, 08:59 Angrius Maximis
 
Bitcoin is a nerds fantasy...and a joke  
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17. Re: Valve Cashing Out of Bitcoin Dec 7, 2017, 08:47 Pigeon
 
So basically these high fees make bitcoin undesirable as an everyday currency, and as a commodity it has no inherent usefulness except the artificial value that's been attached to it. And some people wonder why other's call it a pyramid scam.

This comment was edited on Dec 7, 2017, 09:32.
 
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16. Re: Valve Cashing Out of Bitcoin Dec 7, 2017, 05:14 Slick
 
Kxmode wrote on Dec 6, 2017, 22:09:
All currencies are fiat. However, BitCoin is like the loot box of fiat currencies.

No.

XBT is more like a commodity. There is a fixed supply, and they're impossible to duplicate.
 
Avatar 57545
 
(Regarding SW:Battlefront II) Frostshite is a horrible piece of shit engine that makes games look artificial as if you were playing on a movie set instead of the actual location. -CJ_Parker
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15. Re: Valve Cashing Out of Bitcoin Dec 7, 2017, 04:14 Luke
 
Well so much for getting away from the greedy banks...

Humans can only 1 thing ....ruin everything
 
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14. Re: Valve Cashing Out of Bitcoin Dec 7, 2017, 04:11 Kajetan
 
eRe4s3r wrote on Dec 7, 2017, 03:55:
How is bitcoin even managed? Can they even fracture the currency? (and who is they?) (moving decimal points?)
Bitcoin isnt "managed". There is no central bank, where you can raise or lower specific values and rates. There is only one restricition, the computational end of the blockchain, where no more Bitcoins can be created. The more bitcoins are created, the harder it is to compute new ones until the effort to calculate the last few bitcoins is bigger than any value this currency might have.


BUT ... you can fork Bitcoin like a software, because Bitcoins are generated by a software. Fork it, create a new currency either as part of Bitcoin or as independent from Bitcoin from the date of the split.

https://en.wikipedia.org/wiki/List_of_Bitcoin_forks

 
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13. Re: Valve Cashing Out of Bitcoin Dec 7, 2017, 03:55 eRe4s3r
 
saluk wrote on Dec 7, 2017, 02:21:
eRe4s3r wrote on Dec 6, 2017, 21:50:
Bill Borre wrote on Dec 6, 2017, 21:31:
I'm not sure why transaction costs are ever anything but trivial since it's all done through computers I would guess the business overhead for them is very low.

It's because transactions are % fees calculated in bitcoin, and when value goes up, then so do transaction fees. One of the (many) flaws of Bitcoin.

The currency has to start implementing fractions and move the decimal points a few hundred places to the right to reduce transaction fees back to normal

It's a little more than that. The transaction fee is part of the incentive for miners to mine the chain to begin with. When a miner mines a set of transactions, they are confirming that that block of transactions is valid - and are awarded based on the fees that the chunk contains. If the fees are too small, the miners dont want to mine it, and things grind to a halt. There are also technical issues regarding the size of the blocks and the capability for miners to even verify the block - with the current hash rate transactions take a longer and longer time to verify, which also contributes to increasing fees.

Yeah, definitely issues, in terms of being a useful currency.

Being a useful holding however... it's kind of winning at that for the time being!

Thanks for clarifying But if what you say is true, then your holding may at some point be worth less than the fees.... since hashing difficulty increases? Sounds to me like a really bad idea to hold that any longer, cash out now and walk away rich. Or later, and maybe not walk away at all?

How is bitcoin even managed? Can they even fracture the currency? (and who is they?) (moving decimal points?)
 
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12. Re: Valve Cashing Out of Bitcoin Dec 7, 2017, 02:21 saluk
 
eRe4s3r wrote on Dec 6, 2017, 21:50:
Bill Borre wrote on Dec 6, 2017, 21:31:
I'm not sure why transaction costs are ever anything but trivial since it's all done through computers I would guess the business overhead for them is very low.

It's because transactions are % fees calculated in bitcoin, and when value goes up, then so do transaction fees. One of the (many) flaws of Bitcoin.

The currency has to start implementing fractions and move the decimal points a few hundred places to the right to reduce transaction fees back to normal

It's a little more than that. The transaction fee is part of the incentive for miners to mine the chain to begin with. When a miner mines a set of transactions, they are confirming that that block of transactions is valid - and are awarded based on the fees that the chunk contains. If the fees are too small, the miners dont want to mine it, and things grind to a halt. There are also technical issues regarding the size of the blocks and the capability for miners to even verify the block - with the current hash rate transactions take a longer and longer time to verify, which also contributes to increasing fees.

Yeah, definitely issues, in terms of being a useful currency.

Being a useful holding however... it's kind of winning at that for the time being!
 
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11. Re: Valve Cashing Out of Bitcoin Dec 7, 2017, 01:19 Kxmode
 
necrosis wrote on Dec 6, 2017, 23:08:
MrGrosser wrote on Dec 6, 2017, 22:30:
Guess I'll just have to buy everything through G2A now. Damnit.
Well at least it seems newegg still takes bitcoin so you can buy a new tin foil hat.

And a baby monitor
 
Avatar 18786
 
William Shakespeare's "Star Wars" Act I, Scene 4: CHORUS: And now, dear viewers, shall our play go to \ A Planet stark and drear for our next scene. \ Imagine sand and rocks within thy view. \ Prepare thy souls - we fly to Tatooine!
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10. Re: Valve Cashing Out of Bitcoin Dec 7, 2017, 00:01 theglaze
 
Hypocritical...

Valve skims 5% off marketplace sales and another 10% if it's their own title! Because handling a $2 transaction is harder for them to process than a $200?!
 
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9. Re: Valve Cashing Out of Bitcoin Dec 6, 2017, 23:08 necrosis
 
MrGrosser wrote on Dec 6, 2017, 22:30:
Guess I'll just have to buy everything through G2A now. Damnit.
Well at least it seems newegg still takes bitcoin so you can buy a new tin foil hat.
 
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8. Re: Valve Cashing Out of Bitcoin Dec 6, 2017, 22:30 MrGrosser
 
Guess I'll just have to buy everything through G2A now. Damnit.  
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7. Re: Valve Cashing Out of Bitcoin Dec 6, 2017, 22:14 Creston
 
Huh, I'd totally forgotten you could use Bitcoin on Valve. What they're saying makes sense, though.

 
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6. Re: Valve Cashing Out of Bitcoin Dec 6, 2017, 22:09 Kxmode
 
All currencies are fiat. However, BitCoin is like the loot box of fiat currencies.  
Avatar 18786
 
William Shakespeare's "Star Wars" Act I, Scene 4: CHORUS: And now, dear viewers, shall our play go to \ A Planet stark and drear for our next scene. \ Imagine sand and rocks within thy view. \ Prepare thy souls - we fly to Tatooine!
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5. Re: Valve Cashing Out of Bitcoin Dec 6, 2017, 21:55 rawbelly
 
Bastards wouldn't take my Monopoly money either.  
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4. Re: Valve Cashing Out of Bitcoin Dec 6, 2017, 21:50 eRe4s3r
 
Bill Borre wrote on Dec 6, 2017, 21:31:
I'm not sure why transaction costs are ever anything but trivial since it's all done through computers I would guess the business overhead for them is very low.

It's because transactions are % fees calculated in bitcoin, and when value goes up, then so do transaction fees. One of the (many) flaws of Bitcoin.

The currency has to start implementing fractions and move the decimal points a few hundred places to the right to reduce transaction fees back to normal
 
Avatar 54727
 
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3. Re: Valve Cashing Out of Bitcoin Dec 6, 2017, 21:31 Bill Borre
 
I'm not sure why transaction costs are ever anything but trivial since it's all done through computers I would guess the business overhead for them is very low.  
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2. Re: Valve Cashing Out of Bitcoin Dec 6, 2017, 20:56 Cutter
 
20 dollars for a transaction that costs less than 1 cent? Lol! Yeah I'd be dropping them too.
 
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You've got to be cruel to be kind...in the right measure.
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21 Replies. 2 pages. Viewing page 1.
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