The value of Bitcoin, a cryptocurrency that has gained a lot of attention over the last few years, is hitting new lows every day. This is a far cry from the heady days in 2014 when its value rose by almost double digits every day. Currently, several industry experts are saying the value of this cryptocurrency will continue to fall until the end of 2015.
Although Bitcoin was the preserve of nerds during its early days, it has gained a sizable following in much of the developed world. This is largely because it makes it easy for users to make anonymous transactions especially when buying goods and services online. In fact, this aspect has made it a darling among people who intend to engage in illegal activities such as buying drugs on the dark net. Remember, unlike traditional currencies, Bitcoin is a virtual currency.
This has not stopped Bitcoin proponents from using it to make payments on poker sites. One site that now accepts Bitcoins is the US-based Winning Poker Network. It is worth noting BitnPlay, Burnturn Poker, and Get Lucky Poker are launching as Bitcoin-only online rooms. While Get Lucky is already operational, BitnPlay and Burnturn Poker will start operating by the end of the year.
The Future of Bitcoin
According to a report published by USA Today, the value of Bitcoin has declined by roughly two-thirds in the last six months alone. This fall in value is so unsettling DoubleLine Capital money manager Jeffrey Gundlach has reportedly told investors that he believes Bitcoin is headed towards the ash heap of alternative currencies.
Furthermore, Bitcoin does not have the support of any reputable financial authority. As such, it cannot receive financial backing from a body such as a central bank to prevent further loss of value. As a result, the likelihood of its value sliding further is high.
Even the Oracle of Omaha, Warren Buffet, has warned investors to stay away from Bitcoins. Buffet believes this currency is nothing more than a “mirage.” Bitcoins proponents have countered saying that Buffet is an old man who does not understand technology. This is in spite of his success in buying and selling stocks.
Despite the problems currently bedeviling Bitcoin, some big companies such as Microsoft, Dell, and Expedia have embraced it, meaning consumers can use Bitcoins to buy products from these companies. However, it is worth noting that these companies do not directly accept Bitcoins. Instead, they partner with firms such as Coinbase to turn Bitcoins into hard cash. You can think of companies such as Coinbase as brokers in the cryptocurrency industry.
In general, the future of Bitcoin as a cryptocurrency is at best uncertain. It could decline into a virtual currency used by a few nerds or thrive into a widely used form of settling financial transactions online as well as offline. The latter is the outcome online poker sites hope will materialize. On the other hand, some financial experts believe 2015 is the year talk of Bitcoin becoming a mainstream currency will cease. These experts may have a point because confidence in this cryptocurrency is low.