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The price of bitcoin had dropped approximately 7 percent Friday, quite likely on news that one of the biggest exchanges, Mt.Gox, had stopped processing withdrawals temporarily.
The price of bitcoin had fallen to $686 but rebounded later in the evening to $703, matching the day’s opening price.
Garrick Hileman of CoinDesk suggests there is no need to panic just yet.
Prior to the nearly 20% pullback in bitcoin’s price we’ve witnessed in the last 24-hours, there had been a fair amount of digital ink spilled suggesting that bitcoin’s price volatility may be decreasing.
Hileman also provides an interesting analysis as to why bitcoin’s volatility may indeed be declining, noting that a handful of experts on the anonymous digital currency argued the same in recent days. Hileman looks at both sides, however.
There is a view in the bitcoin community (that) the less useful bitcoin is as a tool of commerce”, which is not entirely true.
Certainly, if you are interested in seeing more people holding bitcoins then, yes, one could argue that lower volatility could make it more attractive to hold bitcoins from day-to-day in the same way people hold US dollar banknotes in their wallets. Reduced volatility should build confidence in bitcoin as a stable store of value.
In more positive bitcoin news, another online gambling site has joined the ever increasing community of bitcoin gambling sites.
This time it’s BitBet.com, part of the same family as our friends at SportsBettingOnline.com and BetOWI.
CommissionPartners.com is now pushing the bitcoin casino platform.
- Aaron Goldstein, Gambling911.com
