Bitcoin is a lot in the mainstream news because of its volatility, store value and the impact it has on the online gambling industry. During the course of a decade it created many instant multi-millionaires while those in the know believe it’s the financial currency of tomorrow.
Many see investing in the cryptocurrency as gambling because it’s speculative at best despite being driven by market factors such as supply and demand. However, the online gambling industry shares a different point of view, as a matter of fact it couldn’t be happier – Bitcoin is an excellent deposit and cash out method for players, it’s safe to use, it’s decentralized (no banks needed) and it offers a degree of anonymity to the user.
Is Investing In Cryptocurrencies Is It Gambling?
People who’ve invested in a cryptocurrency believe that it’s similar to gambling since the sole purpose is to make money within a short period of time and lost of it. Truth be told this couldn’t be further from the truth. When it comes to investing in cryptocurrencies be it Bitcoin, Litecoin, Etherium or Ripple you invest in the technology behind it. There are two types of people who invest in Bitcoin. The first lot are those who see it as a long term investment and the other lot are just in it for the short haul.
If you gamble at Bitcoin casinos with $200 by playing your favorite slot machine there’s always a chance that you could turn your initial investment ($200) into a windfall of $100,000. Each slots is governed by a random number generator (RNG) meaning that the outcome is completely random.
Irrespective of their volatility the bitcoin online casino industry sees the value cryptocurrencies bring to the table. Take an operator like BitStarz for instance, it now allows its customers to deposit and play with Dogecoin, Bitcoin, Etherium, Litecoin and Bitcoin Cash. The casino and players prefer cryptocurrencies because transaction fees are minute, withdrawals are handled within minutes and there are no chargebacks.
Does investing in a cryptocurrency share the same characteristics as gambling? In the long run we firmly believe that when it comes to investing in a cryptocurrency the pros far outweigh the cons. To illustrate our point, in January 2017 the price of one Bitcoin was $1,000, 12 months later it was trading at a phenomenal $20,000 per coin, an increase in price of twenty fold!
Having lost more than half of its original value due to uncertainty, market volatility and governments trying to regulate it, there’s no doubt that Bitcoin will bounce back. Will it reach $40,000 by the end of December 2018? We don’t think so but what we do know is that it might punch $25,000 as the market stabilizes again and investor confidence grows.
Another important feature about Bitcoin is that players who use it as a deposit option at online casinos aren’t restricted by the laws of their respective jurisdictions. Due to the current legislative climate in the United States, Bitcoin bypasses local regulation. U.S casino players can use it to wager at virtual casinos licensed in other jurisdictions. It’s important to note that before a player signs up they must ensure that the operator is legally licensed and that its games are provably fair.
- Cryptocurrencies like Bitcoin, Etherium, Ripple, Litecoin and numerous others have massive investment potential due to the long term gains they offer.
- They can be exchanged for fiat currencies whether banks like it or not. The only downside is that they are volatile and can be influenced by various factors (hackers, government regulation etc.).
- They are safe to use, secure, transparent and customers don’t have to answer to centralized institutions and governments how they spend their cash.
- The technology that drivers cryptocurrencies is unique, it’s also busy shaping the global banking industry.
In summary. As Bitcoin and other cryptocurrencies become mainstream it will have a positive effect on the online gaming industry. Whether digital currencies will replace credit/debit cards, ewallets or wire transfer as deposit methods remains to be seen. What we can say is despite all the hiccups Bitcoin experienced it always came out tops, this in itself bodes very well for the industry.