Wild fluctuations have defined much of Bitcoin's performance this year, but the cryptocurrency's most recent showing could spell good news for sports bettors.
Bitcoin enjoyed a remarkably stable week, lacking the wild fluctuations that have defined its performance throughout 2018. It traded sideways in a narrow range over the past seven days and remained between $8,000 and $9,000 on Monday.
This is unusual for Bitcoin, as it has typically seen dips and rises of more than $1,000 a day in recent weeks, but it could spell good news for sports bettors. There are many advantages to betting with Bitcoin, from its anonymity to its ease of use. However, the crazy fluctuations are a downside as they can wipe out your winning margins in one swoop. If the cryptocurrency finds enduring stability, it could become an even more attractive tool for sports wagering.
A survey of 1,000 Americans this past week suggested that millennials are a lot more enamored with cryptocurrencies than older generations. It found that 9.2 percent of Millennials (ages 18-34) would invest $10,000 in cryptocurrency, compared to 4 percent from Generation X (ages 35-54) and 3.1 percent of Baby Boomers (55-plus). Among the Millennials, Bitcoin was the most popular, with 76 percent saying they would invest in it, compared to 12 percent for Ethereum and 12 percent for Litecoin. (None were interested in investing in Ripple.) Popularity among younger adults should be positive for the future of Bitcoin, and several high-profile figures have given it their backing in recent weeks.
Twitter founder Jack Dorsey was the latest to endorse it. “The world ultimately will have a single currency, the internet will have a single currency,” he said. “I personally believe that it will be Bitcoin, probably over 10 years, but it could go faster.”
David Drake, chairman of investment firm LDJ Capital, added: “We think cryptocurrency on the Bitcoin will be worth $30,000 at the year end.”
It has been a big week for Bitcoin and its fellow cryptocurrencies, as it was a hot topic at the G20 forum in Argentina. The Bank for International Settlements had joined finance ministers in Germany and France in calling for a clampdown on Bitcoin. The G20 committee, which represents a group of countries comprising 90 percent of the global economy and representing two-thirds of the world’s population, assessed the arguments, but decided such calls are currently unwarranted.
In a statement, the group of finance ministers and central bank governors said: “We commit to implement the Financial Action Task Force standards as they apply to crypto-assets, look forward to the FATF review of those standards, and call on the FATF to advance global implementation. We call on international standard-setting bodies (SSBs) to continue their monitoring of crypto-assets and their risks, according to their mandates, and assess multilateral responses as needed.”
However, it said there is no need for the regulation for which some people have called.
Several countries are embracing Bitcoin. Asia remains a global hotspot, Australia is increasingly friendly toward the technology and it is starting to take off in Africa. Paxful, an exchange in Africa, said that in many African countries, Bitcoin is a stable, sensible option for currency investment. “Africans are converting their savings into crypto to preserve their wealth from hyperinflation,” co-founder Ray Youssef said. “Nigeria’s fiat currency, Naira, has lost 90 percent of its value when compared to the USD and EUR in the past two years alone. Meanwhile, Bitcoin rose over 1,000 percent in 2017.”
Yi Gang, the new head of China's central bank, said: “Bitcoin is a currency that provides freedom to anyone that uses it,” providing further good news for this global cryptocurrency.
All of this should protect Bitcoin against any painful dips in the days ahead. And if it remains stable and then starts to enjoy steady growth, it will represent a boon to sports bettors.