Will The Value Of Bitcoin Rise Due To The 2018 FIFA World Cup?
While everybody is speculating about the winner of the 2018 FIFA World Cup, we thought we should seek an alternative point of view. This is also a bit of speculation, but during the FIFA World Cup 2018 there is a fair chance that Bitcoin value will soar to new heights again. However, as is true with speculations, the value of Bitcoin will not rise exclusively due to the World Cup, but in fact, the very idea that Bitcoin has a future will drive its growth.
Bitcoin valuation is still below the $8,000 level as of June 07 2018, a steep decrease after reaching a maximum of $17,900 on December 15 of 2017. But the point to note here is that the value is still in the ‘gain’ zone, and rising again. Here is a chart that portrays the latest weekly changes in the price of Bitcoin:
Chart: Bitcoin Value in the week May 31st to June 7th (Coindesk)
Since there is no speculation in this chart, it is fairly easy to make an assumption that Bitcoin is gaining momentum gradually. Whether this is due to the World Cup or something else, that is the real question to be answered. However, since there is no other major reason for Bitcoin to grow as most of the other factors are either stable or absent, we can really assume that the World Cup is beneficial for Bitcoin holders.
Here’s why.
The Real Reason why Bitcoin should Gain Value during the FIFA World Cup 2018
The first thing to notice here is that the 2018 FIFA World Cup is being hosted by Russia, a country which has many obstacles in the use of fiat currencies due to the sanctions being implemented by major cash processing US companies, such as VISA and MasterCard. This makes the life of a tourist traveling to Russia difficult, as although Kremlin does not accept it, these companies are the global giants which control 90% of the global money exchanges.
Therefore, people who travel to Russia for the 2018 World Cup (or any other reason) would need to resort to alternative payment methods. The best solutions available are converting all their expense funds to Rubles before they reach the country, or, in an attempt to feel secure and less perplexed (which seems to be the popular option), they can try using cryptocurrencies that have a good acceptance in the country for reasons already mentioned above.
Now, as you may have already guessed, once more tourists reach Russian territory to attend any World Cup event, they will either switch their funds to digital fiat currencies or to cryptocurrencies (mainly Bitcoin) for safety. As more and more people opt for Bitcoin, its demand will gradually go up — the value of any currency, whether Crypto or fiat, goes up when the demand is high following basic principles of economics, and so the value of Bitcoin will rise once the demand for the cryptocurrency goes up in Russia.
According to an estimate, around 3.2 billion people (TV viewers included) watched the last World Cup, and while the estimate for total number of tourists is a bit murky, the demand for tickets can be inferred from the fact that 66,000 Iceland fans have requested tickets for the 2018 World Cup — almost 20% of the entire population of Iceland.
POINT to NOTE
There will be over 17,000 volunteers, and Germany’s football fans have made the second most ticket requests (around 338,414). According to statistics, one million international fans are expected to visit Russia for the World Cup, and Russia has done away with visas for football fans so long as they have valid ID, according to DW.com.
With more than one million tourists arriving in Russia for the 2018 World Cup, there is hardly any doubt that nothing could be better for Bitcoin’s acceptance and value within the next four to five years, at least, than it making its way into the hands of these football fans.
Some Important Points to Note Regarding Money Matters in Russia
It is illegal to pay directly with dollars or euros for general transactions in Russia. Now, since people cannot carry Dollars and Euros, the strongest fiat currencies in the world, they must choose better alternatives to get around in Russia. While the Ruble is a very common option, a lot of international tourists might want to convert their money to Bitcoin instead, since Russia is friendly to Bitcoin.
Businesses in Russia are already cashing in on these opportunities. Some renowned hotels in the Russian city of Kaliningrad — a host of some games — are accepting Bitcoin as payment, while some airlines and travel agents, as well as bars, are accepting the cryptocurrency already. The usage levels are going to spike, as only a few other alternatives remain in the long run till the grand tournament ends (it will begin on the 14th of June and complete a month after that date).
The use of Bitcoin as a means of value exchange has been a problem since sending fees for Bitcoin spiked in December. However, in comparison to 400,000 Bitcoin transactions per day in December 2017, there are now once again around 200,000 transactions per day and the fees are back down along with the daily transaction rate. This means people can now exchange their fiat currencies for Bitcoins easily, suggesting that the value of Bitcoin will most probably go up as the 2018 FIFA World Cup unfolds in Russia.
About CINDX
CINDX is an investment platform that allows individuals to combine several crypto exchange accounts into one trading terminal, and gives them the option to connect to the best managers without having to transfer their funds. Moreover, implementation of blockchain-based transactions will allow the trading history to be saved, and a rating system will be used to differentiate the successful managers from the less successful ones.
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