Why investing in the bank of a centralized cryptocurrency casino is a bad idea

[bbc.reporter]

That guy who wrote the article had an impression that of a person who is new to the cryptospace and has invested big in Ethereum. In his article he says,

It’s just that centralized entities are at risk because of this, and decentralized entities will solve the not caring part, meaning that bureaucratic entities won’t be able to do anything about it – and as an investor you won’t care.

and also,

The titles specifies “centralized” because I believe that, in contrast, decentralized casinos (where your balance stays in a smart contract) can be a tremendous investment. An example of a decentralized casino would be etheroll.com

Or he could be trying to start a new gambling casino project built on top of Ethereum.

[BTCevo]

A few years ago, there was a bitcoin gambling site that offered a payment scheme to buy "shares" that would allow share owners to collect a percentage of the site's overall profits.

It was implemented as a last ditch attempt by the website owner to cover his losses via distributing them to share owners.

I don't remember what the name of the site was, it ended in .eu. I think it was bitcoinsports.eu.

Anyone wanting to research it can look it up, could be a decent opportunity to learn from history.

I do not know if this func coin is included on what you said. But if like buying share case, I do not really believe on what they doing though because mostly it does not really attracting people to buy or to invest on it if you compare to real investment on gambling site because I think investment on gambling site with huge traffic is much more profitable

[Reid]

There is a thread here that talks about investing in a crypto currency casino and it is way too good that you will be amazed and somehow might get excited about joining them.
Cant see it anymore I think it had been buried. If I do see it I will send you the link and if I were you dont believe that link. There is a lot more to read than just that article.
What if that person is just a bitter for he had joining the wrong casino?
Try to look for more detailed explanation.

[BlockEye]

There is a thread here that talks about investing in a crypto currency casino and it is way too good that you will be amazed and somehow might get excited about joining them.
Cant see it anymore I think it had been buried. If I do see it I will send you the link and if I were you dont believe that link. There is a lot more to read than just that article.
What if that person is just a bitter for he had joining the wrong casino?
Try to look for more detailed explanation.

Maybe you are talking about Vdice and Edgeless. There some discussion here from the past about that cryptocurrency casino. Anyway, I don't see any problem their since the token they are holding has a value itself and anytime, the investor can sell their share and escape from loss.

[retrocoingames]

Because the author doesn't have a clue what he's talking about?

Laughable to call all crowdfunded gambling sites scams. When was the last time one scammed? Dice.ninja was the last major one.

All the more recent ones? If you get scammed by putting your money into a casino with no players and a 1 BTC bankroll you're going to have a bad time.
It's investing. Do research.

Just-dice returned ~56k btc (around $31 million iirc) to investors in 2014 after it closed. I returned 6k btc (around $5 million) to investors in December when I closed.

Bitdice has seen great returns for it's investors.

He doens't know the law at all.
FYI BetKing was operating legally from the UK without having on onlne licence. Pay a lawyer and follow the advice.
It's also not illegal to setup a company in Costa Rica and pay less tax.

I do agree with some of his points, particularly that licenses are scams.

But to just call all centralised casinos scams is stupid.

Decentralised online casinos will never be as popular as centralised ones. Great tech and great ideal sure but it won't work.

P.S. newbie account posting the link, assume it's the offer.

Also he's not a feared poker player, I've never heard of him

haha first thing that comes to mind - https://www.youtube.com/watch?v=Zypvv8ig_7s

[michkima]

I think the author of that article is really stupid and doesn't know a single thing about gambling investments in the cryptocurrency world. There is really little point to discuss anything with an uneducated person who just wants to publish something out. Relatively, most gambling site investments are safe as long as the operator is declared and they have a gambling license where they operate.

[hatshepsut93]

That guy who wrote the article had an impression that of a person who is new to the cryptospace and has invested big in Ethereum. In his article he says,

It’s just that centralized entities are at risk because of this, and decentralized entities will solve the not caring part, meaning that bureaucratic entities won’t be able to do anything about it – and as an investor you won’t care.

and also,

The titles specifies “centralized” because I believe that, in contrast, decentralized casinos (where your balance stays in a smart contract) can be a tremendous investment. An example of a decentralized casino would be etheroll.com

Or he could be trying to start a new gambling casino project built on top of Ethereum.

Yeah, that article looks very much like shilling attempt for some Ethereum smart-contract casinos, and although I don't hate ETH, I must say that I trust centralized casinos more, because smart contracts are at their early stage and can be very messy, just remember the DAO failure that happened one year ago, it can easily happen with "distributed casino" - someone will find an exploit and drain it all, which will crash the token. I think it's more likely than something bad happening with a trusted Bitcoin casino with a long history.

[BartS]

The conclusion is rather silly. The article makes a lot of valid points, but to jump from "it's very risky" to "it's a bad idea" doesn't really follow. Like any investment, diversification is the key. I would say if you're putting more than ~1% (?) of your money in a single site, you're risking too much. And for what it's worth, I know quite a few people who have participated in crowd funding bankrolls from the time of just-dice, and every single one of them is has made a good return (and that even includes someone who had a very considerable amount of money stollen in the dice.ninja scam).


Also the bitroll investment comparison, is not really representative how normal people would invest. Despite the urging of several people, he left his money in dead/dying/idle sites, just for the purpose of computing a review. The coinwin and icedice loss was completely avoidable, by anyone paying attention. Probably a much better example is this: https://bitcointalk.org/index.php?topic=1585408.0  by someone who actively monitors their investments and pulls the plug when things aren't looking great

Yeah especially when we take into account, that there is a thread in the forum in which a user has done an experiment investing in different casinos and the results have been very telling after 9 months the user won 40% on bitcoin and has almost tripled the value in fiat.