At the start of April, bitcoin hit the front page of the Financial Times after it was speculated that the virtual currency was experiencing an enormous bubble. The bitcoin price (BTC) rose from $33.89 on March 1st to $234.25 on April 9th before crashing to $99.62 in just 2 days. This rise and fall has boosted the currency to the world stage with the latest adoption in a long line of investments coming from the UK’s leading financial betting company, IG.
With such a volatile price, bitcoin has become the perfect betting market for punters looking for big wins. A USD/BTC bet placed on bitcoin just 2 months ago would have seen returns of as much as 1200%. IG are now offering a limited risk binary option for those interested in speculating on the currency.
This couldn’t have come at a better time for IG. Binary betting on the price of bitcoin does not require any funds to be held in the high-risk currency, but in the casino and poker markets where chips are held in bitcoin, activity has all but dried up – the risk is just too high.”
Binary bets, also called binary options, are placed in the form of a ‘yes’ or ‘no’ bet. A predicted future price of BTC is set by IG and the punter agrees or disagrees by betting ‘yes’ or ‘no’.
IG chief executive, Tim Howkins, commented: “While Bitcoin is still a relatively new phenomenon it has surprised many in the financial markets with its popularity. We’re delighted to offer our clients the opportunity to benefit from its price fluctuations using a binary – while limiting their risk exposure”.