Bitcoin Soars in Value: Sportsbook Forum Poster Explains Why
Update 11/3: Bitcoin is now trading at $404 and has cracked the $400 mark for the first time since November 2015.
A thread discussing the recent Nitrogen Sports (SBR rating B) website tour conducted by SBR contained an interesting gem of information from an SBR Forum member concerning bitcoin's recent surge in value.
Bitcoin is presently trading at $318 as of this morning, up from $237 as of October 1.
Why the rise in value? An SBR poster shared the below tidbit.
SBR Forum poster raiders72001: "I don't know if the bitcoin price will go up or down but the huge price jump was caused by a ruling from the European Court. [From Coindesk.com] Bitcoin transactions will be exempt from Value Added Tax (VAT), the European Court of Justice (ECJ) has ruled. According to the Financial Times, the ECJ said that bitcoin transactions "are exempt from VAT under the provision concerning transactions relating to currency, bank notes and coins used as legal tender."
Later in the post, an SBR poster expressed concern over the fluctuations of the digital currency, something SBR has covered extensively in its market watch editorials covering the bitcoin sportsbooks market.
SBR Forum poster evo34: "Definitely rooting for them [Nitrogen], but how many big players really want to have their funds subject to the whims of BTC price fluctuation? And don't tell me you can withdraw every day. You'll die a slow death from transaction costs."
It is understandable that players may not want to bother keeping up with the daily swings of bitcoin or have their bankroll be subject to the inherent risk of a relatively new, volatile currency, but one clarification to the player's post: Bitcoin deposits and withdrawals are free at all online sportsbooks in the SBR Rating Guide. It is likely that the player was referring to the transaction costs associated with turning bitcoin into dollars when redeeming bitcoin at a market place.
Below is a chart showing the previous two weeks of bitcoin movement.
Sports bettors can find a list of 35 bitcoin accepting sportsbooks using the rating guide.