Gambling activities correlates with Bitcoin's price?

[GreatArkansas]

I am little bit confused about this topic, especially in gambling websites that accept Bitcoins or any cryptocurrencies.

So, we can see more activities on gambling that uses Bitcoin when we are in bull market (price increasing)? And decreases the activities or gambling volumes when also the price of Bitcoin keeps dumping (bear season) ?

I don't know if (we) some normal gamblers would have idea about this or maybe some gambling sites would exactly know this based on their website traffic/bet activities.

[DaveWave]

It's like an ordinary FOMO. When bitcoin reaches another highs more people will ride into it. Even mainstream media will mention it regularly. Just like what happened last 2017. Gamblers will also try using bitcoin too especially people in countries that have difficulties betting because of their laws that prohibit betting.

But I don't think gamblers using bitcoin can make major effect on its price. The whales, be it companies or groups of people are the ones that can have big impact when it comes to bitcoin price movements.

[crwth]

Come to think of it, I have a theory with regards to your claim.

So firstly, you said that there would be more people gambling with the use of cryptocurrencies when it's a bull market. A couple of reasons that I could think of initially is that:
1. The price of Bitcoin is high, so risking Lower Volume of BTC still yields great rewards (because of the high price of BTC)
2. More people coming in the gambling sites Due to the news of BTC

Then there's the bear market. Just the opposite of what I input on the bullish market.
1. The price of BTC is Low. People HODL. Accumulating.
2. Fewer people are interested in BTC with its low price.

I think this could be the reason for those gambling activities that you have said.

[Wexnident]

I am little bit confused about this topic, especially in gambling websites that accept Bitcoins or any cryptocurrencies.

So, we can see more activities on gambling that uses Bitcoin when we are in bull market (price increasing)? And decreases the activities or gambling volumes when also the price of Bitcoin keeps dumping (bear season) ?

I don't know if (we) some normal gamblers would have idea about this or maybe some gambling sites would exactly know this based on their website traffic/bet activities.

Gamblers just get on the groove and would naturally want to bet more when price pumps cause they could win much wore profit in bettings. It doesn't really affect it that much but it could be one factor to attribute to during bull market and bear season.
Besides, more and more people are integrating themselves to the bitcoin community so id expect that more gamblers would join and contribute to the bull market of bitcoin.

[Saint-loup]

I think there are more gambling in bear markets, because people seek ways to make profits or at least to reduce their losses.
Moreover when the price of BTC is low, people are less reluctant to gamble it since it's less serious if they lose it.

[avikz]

I am little bit confused about this topic, especially in gambling websites that accept Bitcoins or any cryptocurrencies.

So, we can see more activities on gambling that uses Bitcoin when we are in bull market (price increasing)? And decreases the activities or gambling volumes when also the price of Bitcoin keeps dumping (bear season) ?

I don't know if (we) some normal gamblers would have idea about this or maybe some gambling sites would exactly know this based on their website traffic/bet activities.

I don't really think there is any correlation but even if there's anything, it should be other way around. People who are regular gambler, are not much bothered about the price of bitcoin. Only occasional gamblers are the one who is bothered by its price fluctuations. For them, the bet frequency should go up when the price goes down and vice versa!

[squatz1]

I don't know if I would even say that's the case, I could see it being the other way.

When the price of Bitcoin goes down substantially, and people have lost large large deals of money that they've invested into crypto -- they may turn to gambling to 'win it back' because they don't see the price of BTC (or whatever) recovering back to what they bought it for.

[iamsange]

Maybe if at bull run, people do gambling and want to aim bigger rewards. I mean with same amount in BTC (which actually very big in usd) people can win in a percentage but when they sell it, it will give them a lot of fiat. Maybe that is why a lot of people like to play in bull market.

[lobat999]

I don't know if there were already  previous researches or studies correlating gambling activities with Bitcoin's price but if we put ourselves in the shoes of gamblers, I think there is a very high probability of correlation or connection! So let us put it this way and put ourselves in the minds of gamblers:

Assuming I'm a recreational gambler  and I have 1 BTC which I had recently bought at the price of $8k per BTC. Now after a period of two weeks, the price of BTC suddenly went up to $10k! Immediately realizing that my BTC's value had increased by 20 percent, I was tempted to gamble my gain amount of $2k, thinking that if I lose, I still have the remaining BTC valued at $8k, and thus would convert it to fiat or stable coin and wait for BTC's price to dip at $8k level and buy another 1 BTC which in effect negates my loss of $2k thinking my original entry price of $8k BTC is still the same! So technically, IMO, an increase in price of BTC had a correlation with increased gambling activity.

Conversely, assuming there is a bearish market trend in which I had bought 1 BTC at the price of $10k and after a period of two weeks, it went down to $8k, then most likely I will not be tempted to gamble even a small amount of it since I'm expecting a rebound will occur sooner or later and would instead would hodl it until the price recovers just like what @crwth had illustrated . At this point, we could assume that a decrease in price of BTC also had a correlation with decreased gambling activity.

I know this is quite fictional but it could really happen in real life. I hope there could be more formal study on this topic from the academe so that we can gain more insight about this matter and hope our assumptions will be proven correct! Imho.

[mersal]

I am little bit confused about this topic, especially in gambling websites that accept Bitcoins or any cryptocurrencies.

So, we can see more activities on gambling that uses Bitcoin when we are in bull market (price increasing)? And decreases the activities or gambling volumes when also the price of Bitcoin keeps dumping (bear season) ?

I don't know if (we) some normal gamblers would have idea about this or maybe some gambling sites would exactly know this based on their website traffic/bet activities.

IMO,there is no direct correlation between the prices and gambling activities but when we are in bull run eventually more people will enter into the market so it also paves way for the people to spend their coins as well and most of the will choose gambling since they find gambling sites accepts cryptos more than other sites.

[ChrisPop]

My mental processes goes like this regarding Bitcoin and gambling correlation: if Bitcoin price raises, I'd rather gamble more so I make more of those BTCs, but on the other hand I'm gonna risk more as the Bitcoin I hold is worth more, so it's kind of a mental battle that causes me to be nervous so I'd rather not play.

If the bitcoin price dumps then I want to make more profits from gambling in order to make up for the lost value.. but then I'm afraid that I could lose my BTC and potentially lose the piece of the pie when it starts trending up again..

So in conclusion it is best to only play for fun with small stakes 

[1982dre]

Well i havent seen any difference on the gambling sites the last 4 years that players were gambling more or less depending on the bitcoin price.

Personally I also don't play different. I play with the same amounts in btc even when the price was $3000 or almost $20000.

[DarkDays]

Technically, assuming the absolute value being wagered stays the same, then the amount of BTC wagered during bear seasons should increase as the value of Bitcoin decreases.

However, this isn't always the case. When Bitcoin loses value, we sometimes see dice sites and other casinos slow down slightly, likely because players are still reeling from their market losses, and are unwilling to take on additional risk.

Then again, some investors think the exact opposite, and see gambling as a way to quickly recoup any losses.

[DaftAjax]

I don't know if there were already  previous researches or studies correlating gambling activities with Bitcoin's price but if we put ourselves in the shoes of gamblers, I think there is a very high probability of correlation or connection! So let us put it this way and put ourselves in the minds of gamblers:

Assuming I'm a recreational gambler  and I have 1 BTC which I had recently bought at the price of $8k per BTC. Now after a period of two weeks, the price of BTC suddenly went up to $10k! Immediately realizing that my BTC's value had increased by 20 percent, I was tempted to gamble my gain amount of $2k, thinking that if I lose, I still have the remaining BTC valued at $8k, and thus would convert it to fiat or stable coin and wait for BTC's price to dip at $8k level and buy another 1 BTC which in effect negates my loss of $2k thinking my original entry price of $8k BTC is still the same! So technically, IMO, an increase in price of BTC had a correlation with increased gambling activity.

Conversely, assuming there is a bearish market trend in which I had bought 1 BTC at the price of $10k and after a period of two weeks, it went down to $8k, then most likely I will not be tempted to gamble even a small amount of it since I'm expecting a rebound will occur sooner or later and would instead would hodl it until the price recovers just like what @crwth had illustrated . At this point, we could assume that a decrease in price of BTC also had a correlation with decreased gambling activity.

I know this is quite fictional but it could really happen in real life. I hope there could be more formal study on this topic from the academe so that we can gain more insight about this matter and hope our assumptions will be proven correct! Imho.

Though this isn't based on any real-life experience of a gambler, I still consider this a very good hypothesis. It would make a really good addition to the existing studies about gambling, but this time it is for online gambling.

Since fiats' values changes aren't as pretty often (centralized) as cryptocurrency, the behavior of an online gambler could differ from those who use fiats. As you stated, if a gambler has a $2k increase on his initial buy of Bitcoin, he would definitely/probably tend to gamble as you will not lose anything even if you lose, and on the contrary if the initial buy was $2k under its original price, the gambler won't even bother.

I'm not very familiar with this method but I've seen gamblers who bet neither chips nor cryptocurrency but in-game items (from games), then accepts cryptocurrency as payment or a copy of the said item, and sometimes they trade the said items for an exchange of either another in-game item or cryptocurrency.

[Ayiranorea]

There is nothing much as a change from the gambling houses based on the price moves of the bitcoin. Most of the time gamblers have things calculated in terms of USD and spends in the form of bitcoin. This makes them spend high on bear market and low volume of bitcoin while the market is bullish. Same as this will be the competition rewards from gambling houses. Very few gambling houses used to reduce the reward based on the market trend while majority adjust with reference to the trend of the market.

[MFahad]

I am little bit confused about this topic, especially in gambling websites that accept Bitcoins or any cryptocurrencies.

So, we can see more activities on gambling that uses Bitcoin when we are in bull market (price increasing)? And decreases the activities or gambling volumes when also the price of Bitcoin keeps dumping (bear season) ?

I don't know if (we) some normal gamblers would have idea about this or maybe some gambling sites would exactly know this based on their website traffic/bet activities.

Apart from the effect of bitcoin price, the gamblers will continue to play in both the bull and the bear market. Gambling is a separate industry and they use crypto as a form of payment. It does not matter what is the price of the bitcoin other then when the price is higher people will gamble with lesser satoshi and when price is lower, people will bet with more satoshi.  
The reason for this is that we are still in the era where we calculate the reward and risk in dollar value. If some wants to gamble with 10$, he will convert 10$ in bitcoins and play with those converted satoshis.

[bhabygrim]

It's like an ordinary FOMO. When bitcoin reaches another highs more people will ride into it. Even mainstream media will mention it regularly. Just like what happened last 2017. Gamblers will also try using bitcoin too especially people in countries that have difficulties betting because of their laws that prohibit betting.

But I don't think gamblers using bitcoin can make major effect on its price. The whales, be it companies or groups of people are the ones that can have big impact when it comes to bitcoin price movements.

This is a good theory and it is very accurate and reasonable if you think of it that way.
But I also believe that most of the gamblers in crypto doesn't really care about it's Fiat price unless they are already done playing and they would check how much they've earned or lose specially the high rollers.
So for those gamblers the price wouldn't matter too much and if they think that the price of Bitcoin is too expensive of course they would move on into another crypto like Eth or other accepted crypto in the site that they are playing.

[jossiel]

Everyone isn't just willing to spend bitcoin during the bear market because the value and price is lower. Even I, last year I limited myself into such because I want to keep it because I'm just waiting for the reversal.

And when the price gets higher, it's easier for us to spend it because we are not conscious anymore with the price. We can spend it anytime we want because we have a secured amount that we would like to spend and in bitcoin's quantity, that's going to be a bit lower.

[leowonderful]

People who regularly gamble with cryptocurrency for the purpose of anonymity or not needing to submit KYC/something similar will likely gamble a similar amount whether or not the markets are in a bull market or a bear market, though I imagine there's also a group of people out there that might hold off gambling with crypto when prices are in a clear uptrend. That was the case with me for a few months before and after the drop to $3k- I largely switched over to gambling using fiat for some time and sat on my crypto stash while I waited for things to move up again.

That's just me, though, and I'm oriented towards holding and occasionally trading mid- to longer-term plays with crypto. I'm sure other people think differently.

[TimeTeller]

Everyone isn't just willing to spend bitcoin during the bear market because the value and price is lower. Even I, last year I limited myself into such because I want to keep it because I'm just waiting for the reversal.

And when the price gets higher, it's easier for us to spend it because we are not conscious anymore with the price. We can spend it anytime we want because we have a secured amount that we would like to spend and in bitcoin's quantity, that's going to be a bit lower.

Somehow, the bitcoin's price affects the gambling habits of many people.
But not all gamblers, because some of them are using fiat to buy crypto so it doesn't matter the price fluctuations.
However, for those who are already crypto holders, they might think twice of spending their coins if they feel that it is not worth spending it.
So they will use their fiat instead. In conclusion, one way or another bitcoin's price has impact on gambling business.