The value of a Bitcoin is only worth a fraction of what is was a few weeks ago, and many poker players who invest in cryptocurrency seem to be getting nervous.
Bitcoin took a plunge on Monday and some poker players are worried. (Image: igaming.org)
As of Tuesday morning, Bitcoin was valued at just a shade over $7,000, a far cry from the $19,000 price it hit in December. Still, one Bitcoin is worth approximately seven times more than in February 2017.
But the recent plunge has investors worried and some, including noted economist Nouriel Roubini, are concerned the bubble will completely burst.
“HODL nuts will hold their melting Bitcoins all the way down to ZERO while scammers and whales dump and run,” Roubini predicted on Twitter.
Poker Players Laugh Off Downturn
Doug Polk doesn’t share that pessimism. The high-stakes poker pro-turned-cryptocurrency enthusiast says he is taking a long-term approach to his investment in Bitcoin and other “alt coins.”
“Hope everyone spent their #Bitcoin for some Lambo’s in January. At this point it’s looking like a much stronger investment vehicle,” he joked on Twitter.
When asked if he would pivot back to creating poker videos if BTC completely tanked, he said, “if Bitcoin was worthless I would still be doing way less poker content … The second half of last year I saw poor growth and poker content was my focus. Occasional poker videos make sense but I can’t go all-in in an industry where if there isn’t much room for growth.” he wrote.
Fedor Holz, the youngest player ever to hit the $20 million live tournament winnings mark, shared his investment strategy with his Twitter followers.
“Jokes aside: I suggest to make risk management a high priority,” the 24-year-old advised. “Its a tail-heavy investment. I trade less than once a week (I’m mainly bullish on the tech) and react to events. I keep around 7-7.25% of my net worth in crypto. So I sold on the way up and start buying more now.”
He followed that up with some tried and true advice, “Don’t put all your eggs in one basket.”
Dan “Jungleman” Cates used a poker analogy to question those who are mass selling off Bitcoin.
“I don’t really *get* panic selling. If you lose a lot of money, don’t you want to GET EVEN and not bite the loss?” he wrote.
Haralabos Voulgaris, a high-stakes poker player and sports bettor who also invests in cryptocurrency, confused his Twitter audience.
“In retrospect, I should have known that we reached peak Crypto when the guy who was selling UWheels ‘hoverboards’ in my building a few years ago started offering Crypto Seminars. Oh well,” he posted.
After some of his followers assumed from that post he was selling off all his Bitcoin, Voulgaris clarified, saying he was only being sarcastic.
Credit Card Users Blocked
Four major US banks (JP Morgan Chase, Bank of America, Citi, and Capital One) have barred customers from purchasing cryptocurrency through credit cards.
It’s unclear how much of an impact this move will have on the future of Bitcoin and other forms of cryptocurrency. Investors can still use debit cards and bank transfers to make a purchase.
Banks are concerned that cryptocurrency investors could rack up unaffordable credit card debt if the value of these virtual coins continues to drop. As a precautionary measure, these banks have barred customers from purchasing via credit card.