Bitcoin Still Creeping North as Volatility Eases

Martin Green

Monday, April 30, 2018 11:51 AM UTC

Monday, Apr. 30, 2018 11:51 AM UTC

Bitcoin reached a high point of $9,742 in the past week before a downside correction brought the price back down to $9,210. 

Bitcoin reached a high point of $9,742 in the past week before a downside correction brought the price back down to $9,210. Yet there is still great buoyancy among the cryptocurrency’s advocates, who have seen its value soar by 30% during the month of April. Bitcoin wallet holders are now hopeful of a return to $10,000 in the next seven days as the slow creep north continues. It began the year at $13,000 before panic set in amid warnings of the bubble bursting and a regulatory clampdown and the price plummeted, but Bitcoin has displayed great resilience over the past few weeks and it could soon return to the halcyon days of 2017. Although it should do so in a much more stable, plodding fashion, and that could spell great news for sports bettors.

Bitcoin has been a white-knuckle, roller-coaster ride, turning millionaires into billionaires and then back into millionaires again in a matter of months, and keeping investors and commentators on the edges of their seats. Wild price fluctuations have been commonplace – not so long ago, it rose $1,000 in less than an hour, and there have been similarly sharp declines – but that could soon be replaced by a period of boring stability.

The cryptocurrency skyrocketed in 2017, fueled by so called "mom and pop" investors, who were excitedly chasing a quick buck. Regulatory clampdowns on trading are increasingly pushing those types to one side, and in their stead cryptocurrency funds, financial firms and high net worth individuals have appeared. They are less likely to chase sudden swings, proceeding with caution, and this strips volatility out of the market and makes it more liquid.

Bitcoin is a great asset for sports bettors as it allows you to transcend international boundaries, swerve handling fees and other annoying bank charges, and bet with anonymity, without fear of your winnings being seized. It is typically quicker and easier to use than dollars and other fiat currencies. You do not have to share personal details and books cannot penalize you for your success. Because there are fewer charges, the books can offer sharper odds, so it helps you make a better margin. But the fluctuations in price can be a killer as rapid depreciation can wipe out a chunk of your winning margin, damaging your bankroll. The more stable and liquid the cryptocurrency market gets, the less of an issue this will be. It remains a good idea to bet in Bitcoin and quickly change winnings back into dollars or euros, but it is less of a pressing concern if Bitcoin continues its steady creep north.

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Bitcoin will probably create more billionaires than the Internet did

— Alistair Milne (@alistairmilne) April 29, 2018
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Investors are bullish, and Bitcoin’s ubiquity spreads. A new book has even been written to explain Bitcoin and its blockchain technology to children. A Place in the Blockchain, by Brett Biery, is a picture book about a character named Blocky, which struggles to find its place in the blockchain. Blocky’s adventure is designed to cover many of the same emotions children experience when trying to fit in at school, while teaching them all about cryptocurrency.

While Bitcoin dominates the headlines, the No. 2 coin, Eretheum, is also surging ahead and some experts believe it will eventually become the world’s most valuable cryptocurrency. It launched it 2015 and its price remained below $10 for the first two years, but it exploded in 2017 and hit $1,400 in January 2018 for an individual unit of currency, called an ether. It has since dropped back to around $700, but some commentators see it as the most promising of all the cryptocurrencies.

“Ethereum has the possibility to overtake the market capitalization, and thus value, of Bitcoin,” said Hubert Olszewski, director of business development at Blockchain Board of Derivatives. “This is because from the get-go it was a more versatile tool.”

Because it is a software platform that allows applications such as smart contracts to be built and to run without the need of a third party, it has more potential uses than Bitcoin, which is more limited by design, so you could see this eventually playing a bigger role in online sports betting.

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