Published on January 13, 2015 in Industry News

BitcoinWhen Warren Buffet denounces Bitcoin as a passing fad which has no more real value than a mirage should we take him seriously?

Buffet has spoken out publically against the digital currency, which recently showed a mercurial escalation in value, as being unsustainable. He went as far as to warn people not to invest in it. He labelled is as nothing more than an effective money transmission platform which in itself has no value. He went on to ask if “checks [are] worth a whole lot of money just because they can transmit money?”

What he seems to be missing is that at the core of any value proposition is the issue of scarcity. Cheques could hold great value, if there was a limited number of them available. Real world currency gains its value due to a combination of the wealth it represents and the limited production of the actual currency itself.

The recent catastrophic failure of banking institutions, as well as several large corporations, proves that having tangible assets does not ensure a stable or trustworthy investment portfolio.

At 84 Warren Buffet, who refuses to use a computer or carry a mobile phone, might be taking his personal decision to not invest in things he doesn’t understand one step too far by nay saying Bitcoin. The digital wallet has shown tremendous financial growth and is growing in popularity which speaks more strongly of it than the economies of most countries today.

The online casino industry however has not yet chosen a side in the Bitcoin debate. While it is true that we are seeing the emergence of numerous exclusive Bitcoin online casinos the concern is that they are niche casinos focusing their brand identity on the wallet they support rather than their casino brand.

On the flip side established online casinos have been reticent to take the plunge and develop the infrastructure needed to process Bitcoin. This is due in part to the massive change in business culture it would require to manage an anonymous transactions, as well as some negative historical backlash from the early days of Bitcoin where it was the key transaction method for illegal products and services.

While there is no clear answer at this time the question remains – is Bitcoin the future of global, government free, transacting?