Bitcoin Value Post-Bitfinex Hack Discussed at SBR Forum
Online sports bettors who expressed worry following the news of the Bitfinex exchange hacking have been comforted by the performance of bitcoin in the immediate aftermath.
Despite being the second biggest exchange hacking and loss of funds ($65m) in bitcoin's young history (MtGox: $450m in early 2014), the digital cryptocurrency has bounced back to $570 at press time and hit a high on the trading day of $582.
Sportsbook Review shared some of the immediate concerns from SBR Forum members in the aftermath of the Bitfinex wreckage. One player shared that he lost $400 due to the downward trend and panic sold the remainder of his funds.
SBR Forum member Jakepeavy21 wrote: "Glad I did not panic. Almost sold at 500, made a bit of a rally since then".
Join the bitcoin discussion at SBR Forum.
Why Use Bitcoin with Sportsbooks?
Bitcoin enables sports bettors to get paid quicker from sportsbooks than with traditional banking options in the post-UIGEA climate. In addition to the speed of transactions, sending and receiving funds typically incurs only nominal fees except when converting back to a bank account, which is usually around 2% of the transaction depending on the exchange in question.
The downside of using bitcoin at betting sites is that when dealing with companies that store player balances in bitcoin, market fluctuations can adversely affect a player's bankroll. A $1,000 bankroll might lose 10% or more depending on the sentiment of the market on that particular day, which is why sportsbooks that convert bitcoin deposits to fiat are a preferred solution for risk-averse gamblers.