(photo courtesy of Coindesk.com)
Bitcoin on the way down
Bitcoin (BTC) has continued to plunge mid-day Wednesday with the value for 1 BTC at $190.53.
BTC opened at $267 yesterday morning and is plummeting by the hour as investors are scurrying to unload their shares of the popular cryptocurrency. That popularity and name recognition has not been enough to halt the recent downturn, however.
Sportsbook Review.com reported last week that BTC dropped to the $280 mark after a $5 million hacking controversy which saw exchange Bitstamp suffer a security breach.
It could very well be a case of death by a thousand paper cuts for BTC, though the cryptocurrency has previously shown its resilience following the FBI seizure of black market trading site Silk Road. A total of $28.5 million in BTC (at the time 144,000 BTC) were removed from the economy at the time.
How sports bettors are affected
Online sportsbook bettors who have enjoyed the ability to wager entirely in bitcoin have been dealt a considerable setback. Bitcoin betting site Anonibet announced support for allowing clients to store their balances in USD after news broke of the Bitstamp hacking and subsequent market panic.
SBR spoke with Nitrogen Sports last week on the topic of allowing bettors the option to wager in USD. Nitrogen expressed that it was considering the option, but maintained their confidence in bitcoin's future growth.
An official sportsbook review guide was assembled this fall which categorizes bitcoin betting sites. At the time, SBR predicted the number of bitcoin exclusive sportsbooks were likely to at least triple in 2015.
The biggest benefits players have noted has been the perception of no prying government eyes, withdrawal speed, and virtually no transaction cost when making wagers using the cryptocurrency. At least two out of three of those advantages are taking heavy fire, so being more conservative and sticking with usual cash deposits for the time being is advisable.
SBR has reached out for comment to online sportsbooks 5Dimes and Heritage on whether their bitcoin support will be removed from their online cashiers until the market stabilizes.
Sportsbook Review will update as news develops.