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The cryptocurrency market has rebounded over the past 24 to 48 hours, as the
bitcoin (BTC) price gained about 3%, while other major cryptocurrencies such as
Ripple (XRP) and
Ethereum (ETH) recorded bumps in the 2 to 6% range.
Following a period of relative stability hovering between US$8,000 and US$9,000, the value of BTC has seen significant losses over the last week.
The volatile cryptocurrency’s price has shifted wildly since mid-December when it hit a record high of more than US$19,850, with frequent heavy drops and speedy recoveries. Its price plummeted back to earth in January and February, as governments and central banks around the world raised the spectre of future regulation.
Bitcoin’s value plummeted again shortly before Christmas, dropping by almost US$2,000 in just an hour at one point, and almost slipping below the US$11,000 mark.
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World Cup of Bitcoin?
The
2018 FIFA World Cup Russia will commence in two weeks, with the hosts taking on Saudi Arabia. And Bitcoin’s price could be in for a boost as hordes of soccer fans descend upon the country.
Digital payments in Russia have become fraught in recent years, with Visa and MasterCard blocking credit card services to some Russian bank customers – a result of US sanctions back in 2014.
While the pair have since developed a way around the sanctions – now processing some 90% of all transactions in the country – there’s still plenty of friction when it comes to digital payments. Last year, both payment giants were blocked from
Fintech – the Russian centre for new financial technology as the Kremlin works on its own domestic payment system,
Mir.
Now, some have turned to bitcoin and other cryptocurrencies to pay their way to the Russia World Cup – interestingly, you were able to wager on the 2014
Brazil World Cup using Bitcoin.
It was revealed in May some hotels in the Russian city of
Kaliningrad — which will be playing host to some of the tournament's games —
were accepting Bitcoin as payment while some airlines, travel agents, and pubs
will be taking the cryptocurrency.
The use of Bitcoin as a means of exchange is something the cryptocurrency has been struggling with since fees for sending bitcoin spiked in December. At its peak there were roughly 400,000 Bitcoin transactions per day at the end of 2017 though
this has now fallen back to around 200,000 transactions per day, and fees are back down with it.
Thorsten Koeppl, professor of economics at Queen's University in Kingston, Ontario
previously said: "The value of bitcoin is partly driven by its potential as a payments tool and, before the fees rose along with the price, there were people using Bitcoin for international transfers. This has become more expensive to do now. But the price is still being supported."
As bitcoin is increasingly used as a means of exchange, its utility will rise and demand along with it, pushing up the bitcoin price – along with other cryptocurrencies being used for transactions. Many thought New York's Blockchain Week in May –
including the gigantic Consensus Conference – would spark a bull run. But that failed to materialize, and some are now looking towards the next Bitcoin Halvening event,
in just under two year's time, as the next big boom-time trigger.