Betting on Bitcoin

Are you a Bitcoin bull or skeptic?

The crypto currency’s 2017 price surge has been relentless. The big question – is this the tech equivalent of tulip mania, or the just the beginning of a long term appreciation underpinned by broad acceptance as a valued and scarce asset?

The experts are divided, although there probably are’t really any experts as there is no precedent for this type of thing. But that hasn’t stopped anyone from weighing in in the debate.

According to Saudi Prince Alwaleed, it’s an Enron moment waiting to happen. “I think it’s just going to implode one day,” he told CNBC a couple of days ago. Funnily enough his reasoning for this…

“this thing is not regulated, it’s not under control, it’s not under the supervision of any central bank”

…is precisely the reasons why the bulls see it going to infinity and beyond.

JPMorgan boss Jamie Dimon is another vocal skeptic, calling Bitcoin a “novelty” and “worth nothing”. Silly comment really, given one of these nothings can be exchanged for around $5,500 presently.

Talk to some, and $5,500 is still just the beginning.

Harvard academic Dennis Porto believes Bitcoin’s price is on a Moore’s law trajectory and will be north of $100,000 by February 2021. If he’s right, then a certain Dutch family that only this month sold everything, house included, to go long on Bitcoin will be sitting pretty (not so much if Prince Alwaleed guessed right).

Holding Bitcoins is a gamble to be sure. Daily swings of 10% are the norm. Of course if this isn’t enough to get the pulse racing a growing number of online gambling operations are accepting Bitcoin deposits to fund your playing account.

And if this still isn’t enough to have your nerves completing frayed, now one sportsbook, BetOnline is taking bets on what the Bitcoin year end price will be.

They seem to think $7,250 is a pretty reasonable guess, setting it as their over/under.

You are betting on whether the Bitcoin price (at Coindesk) will reach over (or not) $7,250 at any time before midnight 31st December 2017.

Under is presently favorite…wager $220 to profit $100 on that bet. For the bulls, a $100 bet on over will reap a a profit of $180.