Volatile Bitcoin Gamble Paying Out At Over 1500 Percent

Published Wednesday, December 06, 2017 - Online-Casinos.com
Volatile Bitcoin Gamble Paying Out At Over 1500 Percent

The Bitcoin gamble or virtual currency bet has a lot of people excited on the internet. Bitcoin has reached unbelievable heights in recent weeks crashing through barriers many thought were impossible to achieve. There are high stakes gamblers watching the meteoric rise of the crypto currency and loving the volatile nature of the exchange. The profit from a single Bitcoin purchase back in the beginning of 2017 is over 1500 percent and not many investors or online gamblers can stomach that kind of uncertainty.

A recent article points to the obvious as an exchange group which plans to launch Bitcoin futures maintains there are "ominous signs" that rising transaction costs could cause the crypto currency to collapse in value. American financial market company operating an options and futures exchange CME Group has announced it will begin offering a trade in Bitcoin futures contracts. It will be the second major exchange to allow speculators to bet on Bitcoin's price moving in either direction. The expanding interest in Bitcoin by institutional investors has prompted the move.

Executive director and senior economist at CME Group, Erik Norland, has said that transaction costs are showing "ominous signs" that could signal another price correction is imminent.

Norland shared his understanding of the volatile situation with his clients, "Transaction costs spiked from $2 to around $30 per transaction in late 2010 just before Bitcoin prices suffered a 93% collapse. As Bitcoin transaction costs subsequently fell, another bull market developed. Transaction costs edged higher in 2012 and then soared to over $80 by early 2013, which coincided with another collapse in Bitcoin prices. By 2015, transaction costs eased toward $8 when another bull market began."

Transaction fees are those paid to Bitcoin "miners," Miners are rewarded for their efforts with the creation of Bitcoins. Unfortunately the more Bitcoins that are "mined," the less the reward meaning the cost to create a Bitcoin will rise.



Related news

Return to Latest News