Value of of NaNiwa and Scarlett's showmatch's prize pool drops with value of Bitcoin

This is why Bitcoins probably won't replace regular prize pools.

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This article was originally published on GameSpot's sister site onGamers.com, which was dedicated to esports coverage.

Update #1 : Bitcoins are currently $569 a piece, according to onGamer reader lilopuppy.

Update #2: TotalBiscuit announced that Bitcoinmagazine reduced their pledge to 0.75 Bitcoins on Team Liquid. However, thanks to members of the Bitcoin subreddit, the total prize pool currently sits at 14 Bitcoins, as opposed to the original 12.

When TotalBiscuit announced NaNiwa and Scarlett's BO7 show match, Bitcoin was already on the decline thanks to China's central banks' decision to bar financial institutes from utilizing the currency. Previously worth $1240 a piece, the price of Bitcoin was sitting at approximately $680 a piece when the event was announced. Since then, Bitcoins have continued to plummet in value; they are currently worth $480 each.

Given that the winner of the upcoming showdown will be rewarded by 12 Bitcoins, this is mildly worrying news. Will the price of Bitcoins hold or will it descend further, making the prize diminish further in value? Will the winner be able to successfully cash out their earnings prior to a further drop? If nothing else, this is a good reminder of the volatile nature of digital currencies. No news has been released as of yet in regards to whether recent developments will alter the nature of the show match.

Image credit: http://www.bbb.org/blog/wp-content/uploads/2013/05/bitcoin1.png

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