Bitcoin Puts in Worst-Ever First-Quarter Performance

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Martin Green

Monday, April 2, 2018 12:55 PM UTC

Monday, Apr. 2, 2018 12:55 PM UTC

Bitcoin has registered the worst first-quarter performance since it was founded after its value fell by around 45% in the first three months of 2018.

Bitcoin has registered the worst first-quarter performance since it was founded after its value fell by around 45% in the first three months of 2018. It began the year trading at more than $13,000, but it had sunk to a low of $7,000 by March 31. It has hovered around that mark on Sunday and Monday, and that has led many to forewarn a tough year for the cryptocurrency, yet others remain bullish. It is not proving to be a profitable venture for investors right now, but it is a lot more stable than we have seen before and that spells good news for sports bettors.

There are myriad advantages to betting in Bitcoin and other cryptocurrencies because they offer speed, ease and anonymity. But the wild fluctuations in price on a daily basis can tear into your winning margins if you are not quick to immediately convert them back into a fiat currency like dollars. However, over the past couple of weeks that volatility has not been apparent, and Bitcoin has instead gone up by a bit and then down by a bit, without swinging wildly in any particular direction. That could be because it is becoming more widespread, regulators are accepting its role in global financial transactions and the Wild West aspect is fading.

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Bitcoin is falling back to Earth. It's now below $7,000 https://t.co/fIqifph4ro pic.twitter.com/fYY1SgCzSd

— CNNMoney (@CNNMoney) April 2, 2018
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Value may be falling slightly, but proponents argue that Bitcoin is robust and here to stay. Jon Matonis, a leading cryptocurrency advocate who founded the Bitcoin Foundation six years ago, said: “To the people who say Bitcoin’s a bubble, I would say Bitcoin is the pin that’s going to pop the bubble. The bubble is the insane bond markets and the fake equity markets that are propped up by the central banks. Those are the bubbles.” He was referring to the Bank of England bailing out financial institutions. “Hard coded into the original block zero genesis block of Bitcoin was a headline from The Times of London saying: ‘Chancellor on the brink of second bailout for banks,’” said Matonis. “All they’re doing is papering over the bullshit infrastructure. That headline epitomizes what Bitcoin is about, that’s why it was hardcoded in there.”

The majority of investors no longer see cryptocurrencies as a way to earn a quick buck. They are now investing because they can appreciate the long-term value of Bitcoin. The likes of Goldman Sachs are considering accepting Bitcoin, and Matonis believes this is cause for celebration among its advocates. “I think it’s fabulous that they’re getting into it because it brings in new liquidity,” he said. “They’re going to develop futures markets, options markets, I even think you’re going to start to see interest rate markets around Bitcoin. We’re used to hearing things about Libor, the index for Bitcoin interest rates is Bibor.”

Bitcoin launched in 2009 and it has seen 90% of its value wiped out on two different occasions, in 2011 and 2015. That makes this year’s fall of 45% seem tame in comparison, and the cryptocurrency advocates will be pleased to note that it rebounded in style after the 90% crashes. “I wouldn't be surprised to see prices fall to $5,000 from here or go back above $10 000,” said Craig Erlam, an analyst at Oanda. Others see the current performance as a healthy correction after the astronomical rises in 2017, but those halcyon days seem over. Instead, many people that own Bitcoin are hoping for prolonged stability and positive regulatory news that instills confidence in the markets. The incentive for holding onto Bitcoin is that it will become more widespread, but right now it still seems advisable that sports bettors continue converting it back into dollars after collecting any winnings.

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