Gabe Newell, co-founder and president of the world’s largest gaming platform Steam, announced that 50% of transactions since the platform accepted Bitcoin payments are fake.
This caused Steam to drop support for Bitcoin payments. However, Steam also banned NFT and crypto-integrated games, citing fraudsters.
Why Did Steam End Support for Bitcoin?
Gabe Newell, co-founder and president of the Steam video game distribution platform, talked about why the leading cryptocurrency stopped accepting Bitcoin payments.
Newell explained that a staggering 50% of Bitcoin transactions on the platform are fake. This played a big role in the decision to discontinue Bitcoin payments in December 2017.
In a conversation with a representative from PCGamer, Newell responded when asked why he stopped cryptocurrency payments;
“50% of transactions with Bitcoin were fake, and those who did were customers we did not want to be on the platform.”
The co-founder of Steam also stated that volatility is another problem. Because the volatility in the cryptocurrency market meant that users paid too much or overpaid for games.
However, Newell did not completely ignore blockchain technology. On the contrary, he expressed his belief that there are still no compelling use cases for the technology. Newell made the following statements in his statements on this subject;
“There’s really interesting technology in blockchains and figuring out how to make a distributed ledger, [but] I think people still don’t understand why they need a distributed ledger.”
Steam Does Not Allow NFTs
Earlier this year, reports surfaced that Steam would not allow NFTs on its platform. NFTs have generated a lot of controversy in the gaming space, although there is a significant crowd of developers willing to use them.
Newell said that the problems with NFTs are caused by malicious people. NFT scams have indeed proven to be a thorn in the niche side. So much so that recently NFT trading platforms have started to reconsider how they can better protect users from such events.