Online Gambling Industry Keeping Bitcoin Alive

Bitcoin being kept alive by online gamblingDespite several recent scandals, Bitcoin is maintaining its credibility as a virtual currency thanks to online gambling.   The most successful of all the virtual currencies has overcome several hurdles in recent months; however, investors have faith that Bitcoin will continue to take hold, particularly in the online gambling market.   Recent difficultieshave included scandals, a ban from a major online payment company and the blocking of the sale of an important Bitcoin exchange site. Nevertheless, supports and investors have pushed to find the right niche for Bitcoin, and that increasingly appears to be online gambling.  

Mt Gox was the site which collapsed in a scandal earlier this year. Bitcoins were established in 2009 and achieved peak value in December 2013. At this point, each coin was valued at $1,151 however the Mt Gox trading mechanism was hacked and the site was forced to shut down. This scandal saw values fall by over 50% to just $534 and even fell to as low as $360 in April this year. Overall, values have now stabilised at around $600.

Usage Ban

Another difficulty for Bitcoin came when a usage ban was imposed by the popular online payment service Neteller, which is a global leader in digital currency exchange.   However, as the Isle of Man (where Neteller is based) moves towards full regulation of Bitcoin, Neteller may reverse its decision. Several other key online gambling and payment service companies are based in the Isle of Man, so theoretically this will make it much easier for Bitcoin to become accepted as payment at online Casinos and dedicated Bitcoin Poker rooms.   If Bitcoin manages to catch on in the online gambling industry then this could prove seriously beneficial to Bitcoin investors; however, with Bitcoins currently unregulated, it is unlikely that they will replace digital transactions entirely as the value is not secured.  

Find out more about online gambling payment methods here.  

Posted on August 06th, 2014 by Olivia Mathews