We are seeing the rise in popularity of Bitcoin, and with this comes more scrutiny from institutions and governments. Unfortunately, you cannot go from 0 to 100 mph within a year and remain under the radar. On Tuesday January 16, 2018 Bitcoin lost as much as 25% of its value and is currently at $10,370 from its high of $19,783 from its high last month.
One of the main reasons for this drop is the attention Bitcoin is receiving from South Korea and China. Kim Dong-Yeon, South Korea’s Finance Minister said that there is a chance that the country will shut down their crypto-currency exchanges, which include Bitcoin. This volatility in price is an indication that Bitcoin is walking a tight rope and any statement can trigger a huge decline in its price or upswing. Add to this a few negative statements from China, and fear seems to take hold of those already unsure of their positions.
On the flip side, Bitcoin could have just been a bit overheated and needed to reign itself in a bit. When there is a selloff there is sometime ample opportunity for those who couldn’t get in it before, to start to invest. As of Wednesday January 17, 2018, Bitcoin seems to be continuing its slide and is currently below $10,000.
How does this affect online gamblers?
If you’re not invested in Bitcoin, then you are not a victim of its decline. But if you happen to use Bitcoin for your online play and have a “stash” in this currency, then your winnings will have lost much of its value and you are now a true Bitcoin speculator. Currency speculation is a risky business even with traditional currencies, but as you can see, being a crypto-currency speculator is a whole other ball game. Just a few comments from government officials can influence it, for better or worse.
For those online gamblers who still haven’t tested the waters, it might be a good time to try your luck with Bitcoin or maybe you should just play it safe and stick with your Dollars, Pounds, Euros, Yen and more stable forms of payment. Either way, Bitcoin has so far started the year with a bang and a bit of a bust.