Bitcoin News: What is Capital Flight & Will Bitcoin Actually Take Over?

Written by:
Published on:

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.

Business/Financial News

U.S. Becomes Largest Bitcoin Mining Centre After China Crackdown

U.S. Becomes Largest Bitcoin Mining Centre After China Crackdown

The United States has overtaken China to account for the largest share of the world's bitcoin mining, data published on Wednesday by Britain's Cambridge Centre for Alternative Finance showed.

Fake New: How an Elaborate Hoax in the Crypto Space Led to Death Threats

Fake News: How an Elaborate Hoax in the Crypto Space Led to Death Threats

We can probably speak on behalf of CoinGeek when we say, near and dear to our hearts was today's panel on Media Influence: How News Reporting Affects the Digital Asset Market.  Like Gambling911.com, CoinGeek we know strives to report fair and balanced news.  But not every story out there in the digital assets space proves to be factual. 

Bitcoin SV as Turing Complete System

Bitcoin SV as Turing Complete System

There is a controversy that's been emerging in the cryptocurrency community that claims Bitcoin cannot be used as a turing complete system.  In computability theory, a system of data-manipulation rules is said to be Turing-complete or computationally universal if it can be used to simulate any Turing machine, meaning the ability to recognize or decide other data-manipulation rule sets.

CoinGeek NYC Live or Virtugal: One Week to Go

CoinGeek NYC Live or Virtual: One Week to Go

There’s only a week left until the CoinGeek Conference in New York City. And as a proud association partner, Bitcoin Association is inviting you to watch the final round of the 4th BSV Hackathon during the conference!

China's Top Regulators Ban Crypto Trading and Mining, Sending Bitcoin Tumbling

China's Top Regulators Ban Crypto Trading and Mining, Sending Bitcoin Tumbling

China's most powerful regulators on Friday intensified a crackdown on cryptocurrencies with a blanket ban on all crypto transactions and mining, hitting bitcoin and other major coins and pressuring crypto and blockchain-related stocks.