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Lately, there’s been a lot of talk about Bitcoin becoming the new capital flight. This matters for online bookie agents because they should run their sportsbooks via some type of cryptocurrency.
The most important remains Bitcoin.
Will Bitcoin take over as the new capital flight? Before getting into that, we come up with a definition for capital flight.
What is Capital Flight?
Capital flight is anything that investors head to during a time of crisis. For example, when the housing market imploded in 2008, sending the world into a recession, investors went into precious metals.
The most important precious metal investors flocked to was gold. The second most important was silver.
Silver and gold made up the largest chunk of most everyone’s portfolios. To say that Bitcoin will take over as the capital flight is to say that Bitcoin will somehow replace gold and silver.
Will Bitcoin Take Over Gold and Silver as the World’s Capital Flight?
The short answer is no, Bitcoin won’t.
While many believe Bitcoin is on its way to becoming the most important capital flight in the world, the bottom line is that Bitcoin remains an outlier currency.
An outlier currency is one that’s only utilized in its home nation.
Mexico has the peso. If you go to Mexico with U.S. dollars, you can purchase goods and services. If you go to the U.S. with Mexican pesos, you can’t use those pesos until you turn them into dollars.
The U.S. dollar is a currency accepted throughout the world. It has weight. The Mexican peso is only accepted in Mexico. It has no weight.
Bitcoin remains an outlier currency just like the Mexican peso. This is important for per head agents to understand. Bitcoin’s home nation is the Internet.
While purchasing goods and services on the Internet, you can use Bitcoins. You cannot use Bitcoins to walk into a 7-11 and purchase a soda.
Therefore, Bitcoins are only worth what they can be utilized for, just like all outlier currencies. Gold and silver aren’t currencies.
They can be used like a currency, to exchange goods and services, but they have an intrinsic value separate form their uses.
Gold’s intrinsic value is backed up by the fact that biggest economies in the world, like Chinas, back up their home currencies with gold.
Bitcoin, to be honest, has no intrinsic value. That’s why, although some investors may think otherwise, Bitcoin will never take the place of gold or silver as the best flight capital.
However, it is the best option for online bookie agents. If an online bookie doesn’t accept bitcoin, or other cryptocurrencies yet, they’re missing out on all the benefits cryptocurrency has to offer online bookies and sportsbooks.
Read more about Bitcoin and other cryptocurrencies, plus find out how you can get cash back when you sign up for PayPerHead.com.
