Bitcoin is known to be volatile. But many BTC naysayers were quick to spout their disdain for the granddaddy of all cryptocurrencies the second it took a huge dive from the coronavirus scare.
But, the other camp has stuck to their guns about cryptos, BTC in particular as a safe-haven for our investments. And now BTC is back on the climb, at the time of writing this, it’s at $6,633.77. This means the price has gained nearly 25% since the March 12 crash.
So what’s new with BTC?
As the price plummeted, miners backed out. Now that the price is bullying its way toward the $7k mark again, minors are hopping back on board, which should help to bolster the digital asset. The panic-induced sell-off was nothing short of impressive. But it wasn’t just BTC, the stock market also plummeted. Now there is a new opportunity for those getting as prices are expected to rise.
How it works is, minors tend to either close-up shop, or just shut down their servers when prices plummet. Once the coin recovers a bit, they open back up. Bitcoin is a rare asset where the is the value and vise versa. This is because it’s based on its proof-of-work blockchain which is an immutable ledger that proves or verifies work was done, transactions processed and then pays the minor for their ‘work’.
So, for mining to be profitable, you have to be able to prove the work at a rate that is reasonably higher than your operating costs – rent or lease, the massive electric bill, etc. So, when the price plummets suddenly, the profits become unviable, causing minors to cease operations. This slows down transaction time and stifles the production of new coins. That said, the hashrate is now on the move in an upwards trend.
Bitcoin hashrate is on the increase
While some smaller mining operations capitulated when Bitcoin prices were in the $5000s
Other miners simply turned off their machines and waited for Bitcoin’s price to increase so that mining was worth their while again$BTC #Crypto #Bitcoin https://t.co/TAN70Pge9W pic.twitter.com/KACAMYGDSx
— Rekt Capital (@rektcapital) March 24, 2020
Sportsbooks move a lot of money each year. And BTC has become a significant part of that movement. Previously, sports investors had to use various third-party wallets similar to paypal, but less regulated, to move money in and out of their bank account to and from offshore sportsbooks.
It was time consuming and costly. Then BTC priived to be a viable solution. For anywhere from 16 cents to 70 cents, a person can securely move large amounts of in or out of the best sportsbook accounts. But, now there are very few sports going on in the world. So, all of these daily transactions have ceased.
Casinos and online outlets are getting crushed by the ongoing pandemic. There is no baseball starting, the remainder of the NBA and NHL seasons were cancelled. March Madness and the NCAA Torunaments won’t playout. Look at it this way, roughly 70% of the basketball wagering handle last season was on the tournament … it amounts to roughly 349 million in Las Vegas alone.
So where does that leaves us?
It leaves us betting on NASCAR because they happen to be the only governing body smart enough to run the events, just without the fans in the audience. But, the answer to your unasked question is yes, the lack of sports is affecting BTC. Millions of dollars per week move through online sportsbook accounts.
BTC will continue to rise from the ashesh of the fiery crash on March 12th. And though sports have come to a halt, there are still futures and props to play around with, as well as H Japanese Sumo Wrestling and NASCAR. So, both will adapt and recover.
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