Bitcoin received a double blow in recent days when business mogul and billionaire Warren Buffett denounced it at the Berkshire Hathaway Inc. annual meeting on the weekend and on Monday at CNBC’s ‘Squawk Box’. Buffett who has been on record expressing tremendous dislike for cryptocurrencies advised the thousands of present shareholders to continue to trade in stocks rather than bonds and definitely not Bitcoins.
Buffett reiterated his hate for Bitcoin on CNBC’s ‘Squawk Box’ segment. Speaking from his Omaha, Nebraska home, he reiterated that Bitcoin’s value could be compared to that of gold – which he opines is an unproductive asset. Bill Gates, also a business magnate and a philanthropist, backed up Buffett saying he could bet against bitcoin if there was an easy way to do it.
So how is this affecting the players who value bitcoin for the purposes of gambling online? Bitcoin casinos survive from the value of their main currency. No one knows how bitcoin will fare over the next year but in the day after the comments were made above, bitcoin fell almost $1000. The coin pummeled on Monday when it was just about to hit the $10,000 mark for the first time in a few months.
Online players should look to see more value presented to them in the form of a bonus or jackpot push. Buffett insists that investment in bitcoin is a gamble and a nonproductive asset. Those looking to fatten their bitcoin wallets and maintain online anonymity will continue to spend BTC online.
We previously reported in 2017 how Bitcoin was accelerating online gambling with bitcoin casinos and LTC casinos. However, the BTC value was super hot at that time. Today, since the bitcoin cooled off somewhat, it is safe to expect that the uptake of bitcoin for new users will be slower. The strength of any currency be it crypto or fiat largely depends on the number of people trading on it. Low uptake of bitcoin use will slow down the rapid expansion that bitcoin market has steadily enjoyed and will essentially affect businesses based on bitcoin negatively.
A possible continued drop in the value of Bitcoin can affect any BTC wager made, and even if people want to play in the first place. This could cause some online players to devalue their bitcoin and move over to other online platforms. It may force bitcoin casino site owners to evaluate their pay out requirements and minimums too.
Yet it is not all gloom all together. The Monday fall of bitcoin value cannot be entirely based on the comments. There had been speculations throughout the previous week that the SEC and CFTC would hold a joint inquiry on Ethereum to decide on whether it is a security or an asset. The decision would have had general consequences on cryptocurrencies as a whole so this speculation might have also contributed to the fall. The meeting was later termed as a hoax as it did not materialize.
During the same annual meeting, Warren Buffett admitted that he made a wrong call when he passed buying Alphabet Inc….stating he was in fact not tech savvy enough to judge the future of Google. This admission gives bitcoin enthusiasts space to fault his stance on bitcoin and hope he is wrong as he was on Google and Amazon.
Bitcoin casinos also continue to have an unrivaled market stake because of their nature. 2017 saw bitcoin casinos and online gambling taking a larger role in the gambling community. In Pennsylvania for instance, legislation was passed to legalize online gambling. To start with, they ensure anonymity which a lot of gamblers seek to assure privacy and safety. It being online and digital, it gives global access which creates a big network of users. There are no transaction fees in bitcoin casinos and unlimited transactions which continues to make bitcoin casinos a favorite over fiat money based ones. As they are not regulated in the federal legal ways, bitcoin casino games can customize their rules. There is no point of verification so bitcoin casinos have no age limit. Unlike traditional gambling, bitcoin casinos use blockchain technology that lends transparency. Through the public ledger, a user can follow transactions. As such, some gambling sites publish how they implement their random number generator lending it a lot more credibility as it is free of manipulation. All these factors considered together makes bitcoin casinos a force to reckon on their own right ensuring their stability even in the face of arising hard-line stance against the coin.