Steam is the largest video game marketplace in the world, featuring well over a million options for players to choose from.
The company made over $4.5 billion in sales just in 2017 and that’s their own revenue, not counting the sales of other companies as well.
The way Steam works is that video game developers publish their games there, and then Steam allows players to buy it. Most of the cost goes to the developer, and Steam takes a small cut for their “publishing” services.
In December of 2017, Steam refused to accept crypto payments anymore because of the mass volatility that the assets were under. If you remember, December 2017 was when Bitcoin reached its peak of $19,000 per coin and was growing nearly 10% every single day.
When it comes to accepting Bitcoins at that time, it was a real hassle for a multi-billion dollar company like Steam as they didn’t have many liquidity sources for the digital assets, therefore they were left with payments they couldn’t really convert into cash.
However, for the players themselves, it was an amazing way to “cash out” their cryptos for a much more useful product than the ones available at that time.
Steam could bring cryptos back
There haven’t been many talks with Valve, the owner of Steam about returning crypto payments to the platforms, but we do remember the arguments the company made when they refused to accept them anymore.
The issue was that the volatility and uncertainty behind cryptos were holding them back. Should digital assets become a lot more manageable when it comes to the consistency it’s obvious that Steam would be more than happy to start accepting them.
This is due to the eSports industry slowly inching its way towards a more blockchain-friendly interface.
And since Valve is the owner of one of the most popular eSports games, CS: GO it’s quite realistic to see them add a local coin or only accept stablecoin payments. Regardless of what they choose, it would be a dream come true for many investors.
According to Russian eSports betting experts, Steam would manage a lot more sales through cryptocurrencies than they could even imagine.
Crypto traders sometimes get desperate in finding something to buy with their assets. Should Steam bring the feature back, it’s quite easy to see investors overspend their coins on games.
Although it sounds like an exploit of people’s desires, it’s still an exchange of a product for a payment which isn’t that controversial.
Could it benefit the market?
One thing’s for sure is that the market will get yet another institutional trader in the face of Valve, as receiving so many crypto payments would force the company to liquidate their assets at least somehow.
Placing trades numbering in the millions is sure to make Valve a market maker, but it may not be something they’re willing to commit to.
Regardless though, having such a clear liquidity source in the blockchain world is sure to ramp up the trading volumes to a much higher level than we’ve seen before.
All it takes is for one company to say yes, and bring back the feature.
Giorgi is a news reporter and financial analyst at www.forexnewsnow.com He has 3 years of experience in analyzing the financial markets of Forex and cryptocurrencies. He also likes making hidden jokes in his articles.