Cryptocurrencies price and their effect on gambling industry - page 6.

jaberwock

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Quote from: magneto on August 02, 2021, 05:25:03 AM

If anything, casinos should be turning over more in fiat terms.

As quite an early adopter of bitcoin, I know that I still value of lot of things in absolute BTC terms and not fiat terms. Gambling would be one of them.

When I'm betting with 0.01 BTC, I definitely don't feel like I'm playing with $400.

Those psychological differences definitely do add up for the casino, who ultimately profits more from it.

Honestly I have been around here for 8 years and I can say that I still only calculate on the fiat amount of it, so I am exactly the opposite of you. Whenever I gamble I only care about how much I am gambling in fiat terms at that moment. And the only reason for that is the fact that if I keep considering about how much bitcoin I ended up gambling then I will start thinking how much I could lose in the future, like what I lose today could be 4x more in the future.

I have lost many bitcoins while gambling, when I consider it that gives me big chills because I am not a rich person, even one bitcoin is a lot of money for me, but I did had one bitcoin in my life, I had multiple, but I never had 40k before, so that is how I think in order to keep sane.

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it reminds me that when I made a sportsbook on a certain site and won I was very happy, but when I removed the bitcoin and days later the bitcoin price dropped a lot I was very irritating, I remember that at that time the price of bitcoin all the time it was falling because it was a bear market, so I decided to start placing sports bets on my country's local sites where the currency belongs to my country and I don't pay taxes and I don't have to worry about price fluctuation

Quote from: AicecreaME on August 02, 2021, 09:18:06 AM

So yeah, it's not affecting them in a negative way because the winnings are fixed amount of cryptocurrency and not in any currencies.

True, since deposits are in cryptocurrencies, wins and withdrawals are in crytocurrencies so casinos are not affected by the rise or fall in the price of cryptocurrencies

AicecreaME

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We're talking about cryptocurrency casinos, that's why I think they don't need to convert their cryptocurrency when the market is in bearish trend, because they don't need cash to keep their casinos running and paying their players winnings. So, my conclusion is that they are only making profits or converting their cryptocurrency whenever they think it is good and buy the dip to deposit it on their casinos as a fuel to pay their players winning.

So yeah, it's not affecting them in a negative way because the winnings are fixed amount of cryptocurrency and not in any currencies.

magneto

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If anything, casinos should be turning over more in fiat terms.

As quite an early adopter of bitcoin, I know that I still value of lot of things in absolute BTC terms and not fiat terms. Gambling would be one of them.

When I'm betting with 0.01 BTC, I definitely don't feel like I'm playing with $400.

Those psychological differences definitely do add up for the casino, who ultimately profits more from it.

RealMalatesta

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Quote from: shield132 on July 29, 2021, 07:05:35 AM

How much of your reserves are kept in Bitcoin and in USD/Euro? Do casinos trade with their coins when a serious rise or crash happens?

In my understanding people who are well aware of the potential of crypto or at least bitcoin, must be running most of the crypto gambling houses. They might have started their business without realizing the power of bitcoin and its benefits while holding long term but over the time when they watch what do happens with the value of bitcoins along with each halving, they might started understanding its true potential.

What I am trying to say is, most probably all crypto gambling houses must be enjoying the profitable run of cryptos so far and might be trading to catch the waves of crypto markets and some other casinos must be simply holding like how a typical long term bitcoin holder is doing.

Simply, they are enjoying ~100x profits compared to what they made in 2016 as most crypto gambling houses are always treating 1 BTC = 1 BTC regardless of its USD value.

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I'd actually say that most people would put their reserves into stable coins or fiat instead of crypto, especially if they were going to use the said crypto for gambling. The only instance I'd say that they'd left it behind in crypto would be if they totally forgot about it imo. It is as you said, the price increased over time, but the same could be said for the opposite, especially if you consider the time frames of the price rising and the price dropping. There's too large of a gap for gamblers to "accidentally" take advantage of imo.

I'd also reckon that casinos are constantly regulating the system in case of any major changes that would negatively affect their business.

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Quote from: imstillthebest on August 02, 2021, 01:36:32 AM

unless if they agree to be paid by cryptos . usually those who apply for work in crypto related business are presented to get paid in crypto before they start

Agreed on this on the employee payroll part but they will be paying operational expenses in fiat though and I don't think that they will pay it on crypto as well as the owners profit. Because businessman always take profit on hard cash unless they are a trader but usually they always preferred a play safe which is converting cryptocurrency in to fiat or stablecoins. I believe we can get a best insight if casino owner like @lightlord from bitvest & 777 game can make a comment about this. Wink

imstillthebest

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Quote from: ralle14 on August 02, 2021, 12:54:41 AM

Quote from: imstillthebest on August 01, 2021, 07:57:21 PM

on some gambling sites their minimum amount to bet is lower than 1 sats but to some thier minimum amount to bet is fix at 1 dollars .
i think higher minimum bet amounts like 1 usd does have an effect to a gambling business because not all players can afford it . when it comes to players profits they remain unchanged .

One dollar minimum is still fine though, the bigger issue imo is the minimum amount for deposits and withdrawals because even if they could adjust the minimum to .01 usd only a small portion of gamblers could take advantage of the small bet amounts since not everyone could afford to deposit that much money in one session.

i think 1 dollar minimum bet is being used in real life casinos and non crypto casinos , this is why some crypto casinos copy it and there are gamblers that are already used to it .

Quote from: Beparanf on August 02, 2021, 01:04:09 AM

Quote from: imstillthebest on August 01, 2021, 07:57:21 PM

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I think they are regularly trading there crypto profit to fiat in a regular basis because they will need fiat to pay for there operating cost and employee.

unless if they agree to be paid by cryptos . usually those who apply for work in crypto related business are presented to get paid in crypto before they start

Beparanf

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Quote from: imstillthebest on August 01, 2021, 07:57:21 PM

on some gambling sites their minimum amount to bet is lower than 1 sats but to some thier minimum amount to bet is fix at 1 dollars .
i think higher minimum bet amounts like 1 usd does have an effect to a gambling business because not all players can afford it . when it comes to players profits they remain unchanged .
the numbers that we saw can be lower now but the value of them is also adjusted and they are higher now . im not a casino representative but i think most of the casino's cryptos are remain untraded because they are using it for thier business . they chose this business in the first place so they should know the risks of volatility

I think they are regularly trading there crypto profit to fiat in a regular basis because they will need fiat to pay for there operating cost and employee. The only money they keep untouch are those funds on the current bankroll but sooner they will have an audit in fiat then re-evaluate on how much they will convert to fiat. Casino is not a holder so definitely they trade there crypto as much as possible so this guys oparate there business no matter what is the price of crypto.

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Quote from: Fundamentals Of on August 01, 2021, 10:00:17 PM

But it is probably also getting common for others to ask for a fee. If withdrawal fees are kept the same in terms of Bitcoin, then it is definitely increasing in terms of dollars because the price has been rising a lot.

Yup, most sites are asking for fees which i'm fine paying but the downside is that some of them ask for way too much even if the network isn't busy.

Quote from: imstillthebest on August 01, 2021, 07:57:21 PM

on some gambling sites their minimum amount to bet is lower than 1 sats but to some thier minimum amount to bet is fix at 1 dollars .
i think higher minimum bet amounts like 1 usd does have an effect to a gambling business because not all players can afford it . when it comes to players profits they remain unchanged .

One dollar minimum is still fine though, the bigger issue imo is the minimum amount for deposits and withdrawals because even if they could adjust the minimum to .01 usd only a small portion of gamblers could take advantage of the small bet amounts since not everyone could afford to deposit that much money in one session.

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Quote from: Obito on August 01, 2021, 10:11:46 PM

Quote from: KTChampions on August 01, 2021, 01:35:49 PM

I noticed a significant difference in two things - firstly, faucets and free chips stopped being issued in satoshi. Now you can get only virtual chips for free. The fees for depositing and withdrawing funds have changed significantly, earlier they were even more than now if you count in cryptocurrency, but if you evaluate it in dollars, now they are clearly higher than before.

That's what happens when the prices go up, they have to keep up so as to not experience losses because the price increase waits for no man and it's not like it's a bad thing, that's just how the market is, if the price is high then you will have to increase too but if the prices go down you have to go down too.

In the long run, casinos still make money despite of the market price and the only affected here are the gambler especially if you are just going to fund your account using a higher price while the market dumps after you gamble, you supposed to have more. Crypto price are more volatile, we have to accept that as a gambler and casinos are also taking risk for that. This is why some casinos are USD based value, that allows you to withdraw on any cryptos.

Obito

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Quote from: KTChampions on August 01, 2021, 01:35:49 PM

I noticed a significant difference in two things - firstly, faucets and free chips stopped being issued in satoshi. Now you can get only virtual chips for free. The fees for depositing and withdrawing funds have changed significantly, earlier they were even more than now if you count in cryptocurrency, but if you evaluate it in dollars, now they are clearly higher than before.

That's what happens when the prices go up, they have to keep up so as to not experience losses because the price increase waits for no man and it's not like it's a bad thing, that's just how the market is, if the price is high then you will have to increase too but if the prices go down you have to go down too.

Fundamentals Of

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Quote from: KTChampions on August 01, 2021, 01:35:49 PM

I noticed a significant difference in two things - firstly, faucets and free chips stopped being issued in satoshi. Now you can get only virtual chips for free. The fees for depositing and withdrawing funds have changed significantly, earlier they were even more than now if you count in cryptocurrency, but if you evaluate it in dollars, now they are clearly higher than before.

Nice observations. This means Bitcoin is now kept more than freely given away even in small amounts. They're getting more precious, after all. In terms of withdrawals, there are still gambling or betting sites that offer free withdrawal. But it is probably also getting common for others to ask for a fee. If withdrawal fees are kept the same in terms of Bitcoin, then it is definitely increasing in terms of dollars because the price has been rising a lot.

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Quote from: mindrust on August 01, 2021, 01:33:48 PM

I don't think it affects casinos that much unless they use super valuable coins like bitcoin because transfer costs of that coin also rises when its price rises.

It's 1:1. Gambling sites have large reserves (they should have) of certain coins e.g bitcoin on their respective cold wallet so regardless of BTC up or down, the fees used will still be in BTC value.

Quote from: mindrust on August 01, 2021, 01:33:48 PM

If the price goes down however, the casinos bankroll would also go down and big USD holders may try to bankrupt the casino by wagering big amounts. It is an unlikely situation but not impossible.

I don't know where you got that idea but that is unlikely to happen.

What's the connection of price decline for casino bankroll to go down? The gambling on that platform will still be on their usual operation regardless of the price up or down. There are big losers, there are gainers, etc. as usual.

And I doubt a great number of big whales will attempt to bankrupt the casino. Why should they? What if they lose? That was a worst idea providing the fact that it's impossible to beat the casino 100% in the long run.

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on some gambling sites their minimum amount to bet is lower than 1 sats but to some thier minimum amount to bet is fix at 1 dollars .
i think higher minimum bet amounts like 1 usd does have an effect to a gambling business because not all players can afford it . when it comes to players profits they remain unchanged .
the numbers that we saw can be lower now but the value of them is also adjusted and they are higher now . im not a casino representative but i think most of the casino's cryptos are remain untraded because they are using it for thier business . they chose this business in the first place so they should know the risks of volatility

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Quote from: mindrust on August 01, 2021, 01:33:48 PM

I don't think it affects casinos that much unless they use super valuable coins like bitcoin because transfer costs of that coin also rises when its price rises. Otherwise, it wouldn't affect the casino very much especially when the price rises.

If the price goes down however, the casinos bankroll would also go down and big USD holders may try to bankrupt the casino by wagering big amounts. It is an unlikely situation but not impossible.

Not all the times on where high price would indicate high fees but it would be always depending on the network condition but most likely it would really be on that situation because people would definitely be that busy
on trading out bitcoin on that particular time specially on bullish run.

When it comes to USD matters or talking generally with volatility then of course it would really be affecting in all angles no matter how it moves neither you would be earning in usd
or would be losing if it goes to other side.

For sure majority is really been awared with that possibilities and it isnt something that they would be shocked.

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I noticed a significant difference in two things - firstly, faucets and free chips stopped being issued in satoshi. Now you can get only virtual chips for free. The fees for depositing and withdrawing funds have changed significantly, earlier they were even more than now if you count in cryptocurrency, but if you evaluate it in dollars, now they are clearly higher than before.

mindrust

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I don't think it affects casinos that much unless they use super valuable coins like bitcoin because transfer costs of that coin also rises when its price rises. Otherwise, it wouldn't affect the casino very much especially when the price rises.

If the price goes down however, the casinos bankroll would also go down and big USD holders may try to bankrupt the casino by wagering big amounts. It is an unlikely situation but not impossible.

qwertyup23

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Quote from: Darker45 on July 29, 2021, 09:55:02 AM

I can only speak for myself. Actually if I could only turn back time, I think I wouldn't have used my precious Bitcoin or even Ethereum and other major altcoins for gambling. Those crypto amounts I had squandered on gambling used to be small amounts. But now, they are already worth a fortune to me. Having said this, I think the fast rise of crypto prices could somehow discourage some gamblers from spending their crypto. However, with the features unique to crypto, other gamblers might still stick to it.

I definitely agree with this statement.

This is true- if I could also turn back time, I would not use my BTCs as the currency for my online gambling spree. When I joined this forum last 2017, some of the proceeds that I received from participating in campaign signatures went straight to some gambling websites. To cut the story short, I lost like 0.05 BTCs before. If we were to convert its price now, 0.05 BTCs = $2,000 but before, it's converted USD price was below $100.

Lesson learned- if possible, always avoid betting your precious BTCs since you will never know that its price may skyrocket again 5-10 years from now.

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Quote from: dothebeats on July 30, 2021, 05:43:18 PM

Crypto casinos need to keep some of their reserves purely in crypto, otherwise they wouldn't have anything to pay their customers if someone gets a juicy jackpot on one of their games. It's one of the risk that they need to accept since they are dealing with cryptocurrencies on their platform. They can convert some of their crypto assets to USDT or any other stablecoin to gain some $ profits, but they have to convert it back again in order to have something to pay for their players.

For the players, I don't think the change in $ price matters much, especially if the amount is on the low side. But then again, some of them are surely regretting that they spent much btc/whatever crypto on a casino rather than just playing with USD directly.

Well, you are right that the risk will be much greater if the victory is obtained at the ATH of the crypto being played. It was really advantageous for players who had that kind of rare luck. Especially when you bet BTC when you get the Jackpot. On the other hand, it benefits the Casino who gets all the advantages in large numbers. Where they will immediately make a backup not only in crypto, in $ they will do it in order to minimize the occurrence of a bear market.

Topic: Cryptocurrencies price and their effect on gambling industry - page 6. (Read 1295 times)