Bitcoin valuations make online gambling risky

Talking about Bitcoins online is a bit like talking about religion or politics, no matter what you say, a lot of people are going to disagree.   There are those who see Bitcoins as nothing but a Ponzi scheme created by some unknown group of people, while others see it as the ultimate form of liberty.   But one of the really interesting debates is when people try to both justify it as a currency, but then in the same breath say it is a great investment tool to make a lot of money.  In reality, both cannot be true.   Currencies are investment tools, but they are usually the safest, most marginal ways to make money, where large hedge funds use huge investments to make tiny profits in a very predictable way.   Currencies generally move in small fractions of 1% per day.  However, Bitcoins are more often equated to investing in tech or bio-medical start-up where you are lured by the chance of doubling your money in a few months or even weeks.  This type of speculation and price movement is not something you want to see in something used as a currency, and this problem is showing up in online casinos.

Online Casinos are one of the few places where you can actually give and receive bitcoins very easily and frequently.  The problem with the spiky value of Bitcoins, which often can gain or lose 5-10% in a day is that the casino must protect themselves against changes in the value of Bitcoins while they are holding your Bitcoins, which often seem counter-intuitive for gamblers.  For instance, say you deposit five Bitcoins and have an up and down week of gambling, at the end of the week, your bank is exactly the same as when you started, but when you go to withdrawal your Bitcoins, despite having broken even, you only receive 4 Bitcoins back.

Online Casinos are a business, they are well researched and have done the math as far as customer behavior, game payouts, expenses… they are meticulous about not being surprised.  They calculated where the risks are and have accounted for them.  Having a currency that can devaluate 20% in a week is not part of their calculations.  Online casinos will continue to support and market for Bitcoin use, but players have to be prepared that while they have money deposited at a casino, they are not only gambling with the games, they are also gambling with the value of Bitcoins when withdrawal, the casinos are not going to be the ones betting on Bitcoin values.