Steam comes under fire for ‘counterfeit’ crypto transactions

Video game developer Valve’s president Gabe Newell has said half of all crypto transactions on the PC gaming platform Steam were fraudulent before it removed bitcoin (BTC) as a payment option.

In an interview with PC Gamer, Newell said: “We had problems when we started accepting cryptocurrencies as a payment option. 50% of those transactions were fraudulent, which is a mind-boggling number. These were customers we didn’t want to have.”

In April 2016, Steam added BTC as a payment option, but later on in December 2017 it withdrew the payment method, stating there was “a significant increase in the fees to process transactions on the Bitcoin network”.

It was reported that Newell didn’t agree with the unpredictability of BTC being used for transactions. He described the fluctuation of costs from $10 to $100 as “a complete nightmare”.

Although Valve isn’t an advocate for using BTC anymore, Newell is not adverse to the ideals of blockchain technology and distributed ledgers.

However, this counteracts the company’s 2021 decision to ban games that were built on blockchain technology that issue or allow the exchange of cryptocurrencies or NFTs.

It seems that Newell is in two minds about the use of crypto, or the newer stance into NFT-based games as he described them as games that were “ripping customers off”.

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Source

Updated: 03/01/2022 — 10:00