The unexpected fall of the Silicon Valley Bank (SVB), one of the biggest banks in the US, shocked the entire world. Mostly serving tech companies and venture capital, SVB's collapse affected dozens of companies all over the world. But the tech industry is not the only to be affected by the unexpected turn of events, as the crypto world and global poker industries have changed as well.
It is not a secret that the value of cryptocurrencies (like Bitcoin) tends to fluctuate constantly, but many gambling venues still think of it as a reliable payment method that poker players can use online. Will that change after the latest shift in the US economy? Are cryptocurrencies stronger or weaker than they were before? Find out whether crypto poker rooms are still a relevant gambling option for you!
How Cryptocurrencies Were Affected by SVB's Collapse
It might not be a coincidence that the bank that was born out of a friendly poker game back in the 80s' has affected the poker industry in such an unforgettable way. Two days after SVB closed its doors, another bank had to call it quits.
In a domino effect following SVB's collapse, customers chose to withdraw large sums of money from Signature Bank in New York, which led regulators to close the bank as well in order to contain the panic.
Apparently, the bank was deeply involved with crypto exchange. According to reports, the bank had around $16.5 billion in crypto-related deposits at the beginning of March 2023. In addition to that, the bank was known for allowing fast payments and supporting digital-asset liquidity, which greatly benefited the crypto market.
At first glance, it might seem as if the downfall of those banks might further destabilize the crypto market. However, the exact opposite happened! In the days following the drama in the financial sector, both Bitcoin and Ether rose in value. For example, at the beginning of March, Bitcoin was worth about $20,000, and now it is steadily clinging to a value of approximately $28,000.
Crypto supporters seized the moment to explain why digital currencies are important in our day and age. Joe Donnelly, head of marketing at NiceHash, said: "…how Bitcoin is important to the economy; it provides an alternative to the banking system where you don't have to rely on someone else doing things that you're not necessarily even aware of".
On the other hand, some people are more pessimistic about the situation. Since two of the most Bitcoin-friendly banks just closed, it might affect how fast and efficient crypto transactions might be in the near future.
The Future of Cryptocurrencies and Poker
Since so-called conventional banking methods proved to be rather unreliable, there is a chance the crypto industry will thrive under the latest circumstances. If key players in the crypto world manage to use this situation to their advantage, people will see the benefits of having the transparency of digital currencies. Those can reduce the chances of panic-oriented withdrawals, avoiding catastrophes and further inflation.
At this moment in time, it seems that Bitcoin online poker rooms won't only survive the day – they might also thrive and evolve more than we could have ever imagined. Now is the time for the crypto industry to prove it is invaluable, and maybe in a few years, we will see more crypto users playing poker online.