A new "game of skill" centered around bitcoin's price changes is going live. Launched by Chicago-based Level Trading Field, Bitcoin Market Predictor now allows users to place bets on the future price movements of bitcoin, adding to a growing list of mechanisms U.S. investors can use to speculate on bitcoin's price – whether it's going up or down. While most of the mechanisms to short bitcoin, at least in the US, are aimed at institutional investors, Bitcoin Market Predictor is notably targeted towards retail investors. Each game costs only $50 to play.
So, how does it work? The game is structured so that groups of 10 are segmented into a game, with users placing bets about the price of bitcoin at the top of the hour. The top three most accurate predictions share the pot, which for each game (after Level Trading Field's 10 percent fee) leaves $450 to split.
The closest guess gets 50 percent of the pot ($225), the runner-up gets 30 percent ($135), and the second runner-up receives 20 percent ($90).
10% is a lot to be a house edge! I don't think I'd be willing to bet here. I know the chances of winning is computed differently here as you are playing for the pot. But really that is totally a lot of money the operators are taking per bet. This will likely be an issue for every gambling even thinking of joining this gambling site.