As Bitcoin’s prominence as risen over the last couple of years, it has become a commonly accepted method of payment within the online gaming industry. The benefits of using this payment method is that its usually free and quick and does not require the users to provide any sensitive financial information.
As Bitcoin continues to establish itself as a legitimate means for carrying out online transactions, it has seen its value skyrocket, netting its users a healthy profit in the process. The biggest increase in value occurred in 2013 when 1 Bitcoin was only worth $15 at the beginning of the year, but then increased to a staggering $1000 by November. The value slowly dipped between start of 2014 until mid 2015, then sustained a stable continuous increase until March of this year where it hit $1000 mark again. Just 2 months later, the price is now over $2,200, a staggering increase that is outpacing any other currency in the world.
As amazing as this insane jump in value is for its users and investors, it also leaves them somewhat baffled as to the actual value of this currency. This is particularly true for online gamblers, especially considering the fact that the current price of over $2,200 is actually 19 percent lower than what it was going for just a week ago, when it reached its all-time high of $2,791.69 on May 24.
The currency’s volatility can therefore be seen as a double-edged sword, and is making it near impossible for online gamblers to determine how much each wager is actually costing them. Games such as slots, which are charged at a percentage of a Bitcoin (0.05mBTC, one millionth of a full Bitcoin), is costing today 11 cents per spin compared to less than 5 cents back in March.
Online operators are trying their best to match the costs of wager to the forever-changing value of the currency, but to the unsuspecting Bitcoin holder who isn’t constantly monitoring the live value of their asset’s worth, it could mean they are risking far more than they had initially anticipated, even to the point where they are betting beyond their means.
Japan formally recognised Bitcoin as legal tender in April, and as such , sent the value of bitcoin through the roof. However, this peak quickly fell in light of the recent WannaCry ransomware hack that put Bitcoin back into negative light.
As volatile as it has been, financial experts still firmly believe that the price will eventually stabilize, and reach a new all-time high by the end of the year.
“There is a lot of fresh liquidity flowing into Bitcoin, thanks to a surge in interest among investors in Asia,” digital currency expert Aurelien Menant told CNBC this week. “I would not be surprised to see the Bitcoin price doubling again to around $6,000 by the end of the year.”