Should Bitcoin leverage gambling?

[Bryan jessy]

While your idea may sound like an interesting one, economically of course, I’ll still wanna be careful with joining Bitcoin adoption with gambling adoption. Let’s assume a casino genuinely decides to convert a meaningful share of its surplus into Bitcoin, then when gamblers lose, it could potentially create some kind of persistent demand for Bitcoin, which looks good, but the real big question there should be whether this sudden demand is actually worth the reputational and regulatory aftermath that’ll come with tying Bitcoin to gambling, if the answer is is yes, then it’s indeed a good move, but it not???

At some point I completely forgot that there are other currencies in existence to gamble with i only thought that the best currency to gamble with is Bitcoin, seeing this thread reminds me that other cryptocurrencies exist and all can be used for gambling depends on the one which is preferable to them, and due to the volatile nature of Bitcoin it will not be advisable for a business to store so much in Bitcoin but rather some amount can be invested in Bitcoin while others in a lesser volatile asset due to the demand of gambling it will not be safe to invest a whole some of their surplus in Bitcoin so they will not have issues of dips when they want to settle their customers.

[YOSHIE]

Should Bitcoin leverage gambling?

Gambling and Bitcoin are only limited to transactions to make it easier for users to process deposits and withdrawals instantly, nothing more than that, In my understanding, if Bitcoin is used for gambling, it will actually worsen the crypto market, which is part of the risk that it will trigger addiction, can act as a money laundering activity and can also affect Bitcoin volatility.

In fact, we need to understand correctly that Bitcoin is basically not gambling, as we know it is a digital asset which can be operated via blockchain technology, so clearly Bitcoin cannot be used like an exchange.

[Russlenat]

Didn't we already see how gambling helped Bitcoin adoption, especially in the early days? Back then, many gambling sites were almost completely anonymous and did not require KYC, so Bitcoin became a convenient way for people to deposit and withdraw. Later, governments and regulators came in and KYC became more common, which removed some of that privacy. Still, I don't see anything wrong with people spending Bitcoin for gambling. Bitcoin was made to be used, not only stored forever.

If everyone only held Bitcoin and nobody used it, its real-world utility would be much weaker. What we have now is healthier because Bitcoin is being used across different industries while investors are also holding it as an asset.

Bitcoin has already gone above $100k, so I think adoption from both users and investors can continue supporting its growth. I wouldn't say it is guaranteed to pump forever, but wider usage certainly gives it a stronger foundation.

[Popkon6]

Using Bitcoin for gambling is really different, I only use Bitcoin for holding purposes and I hold this Bitcoin to be financially secure in the future. And but if people who use Bitcoin for gambling keep holding Bitcoin it will be much safer and financially secure for their future, people will continue to gamble but it is best to gamble with local currency or stable coins.
However, many gamblers also like to gamble with local currency, so you should use different cryptos for gambling. It will be best if you use all coins except Bitcoin for gambling.

[KiaKia]

Gambling is a huge business worldwide
-
IMF forecasts the market at roughly $807 billion in 2026 and $1.03 trillion by 2030. ¹

Instead of only a casino that accepts Bitcoin, an interesting innovation would be a casino whose economic surplus systematically becomes Bitcoin demand. Each bet lost would be a win for the Bitcoin economy.

And furthermore, most Bitcoiner gamblers would be more inclined towards a casino that hodls most of its reserves in Bitcoin. Bitcoiners would be encouraging this kind of adoption.

I get it, Bitcoiners do not want gambling to become associated with Bitcoin. But people are going to gamble one way or another - why should Bitcoin not capitalize on this?

sources:
1. https://www.h2gc.com/news/general/global-gambling-market-to-exceed-1-trillion-ggr-by-2030-driven-by-online-channel-growth

Are you saying that each Bitcoin that's lost on a casino remains lost forever? As if the casinos will burn their Bitcoin because this is the only way that this will make a lot of sense.

Casinos won't send their Bitcoin to a unreachable address, it's not going to happen, casinos want profits and that's why they are offering their services, the money they are making is why are still alive.

Earning Bitcoin and throwing it away makes no sense, they will have to sell once a gambler lost it, because Bitcoin is still a volatile digital asset.

[Dogedegen]

This looks nice on paper, but the reality is that casinos are in for the profit and not for investment. Accumulating Bitcoin in such a way is not an ideal design for a profit-oriented establishment.

This model is basically forcing away the dollar amount attached to each sat, unless you're talking about a different model in mind. One of the main reasons this type of design has not been implemented anywhere else is because of Bitcoin's volatility. If Bitcoin will one day be less volatile, then I think a lot of business won't mind it that much using Bitcoin as reserve.

This is not correct because you are repeating a theoretical definition of a business that it is only a for profit venture. The reality is that there are many types of businesses, and many spend funds on things that do not generate profit including many that donate large amounts of money. Therefore to claim that this is not good because everyone is only looking for profit is false. To continue on that, a Bitcoin reserve can be two things. It can be a preservation of value which helps with the long term profitability of a business. It can also be as an investment which generates more return on the profits that a casino had. So as you see, even from this perspective your claim is false because these aspects can enhance the profitability even of businesses that are purely looking for profit.

It is these misunderstandings and a lack of human pressure that lets businesses like the major casinos do whatever they want, even if it is not beneficial for everyone. If humans could get together and create pressure for reasonable demands then better outcomes could be achieved. The reality of these businesses is that putting 10% of their profits away into a Bitcoin reserve would not harm them and it would not risk their business at all. We are talking about profits after expenses and not revenue. The risk is limited to the total allocation towards the reserve, and even if they lost that completely which is not likely they would not risk their business.

[abel1337]

Using Bitcoin for gambling is really different, I only use Bitcoin for holding purposes and I hold this Bitcoin to be financially secure in the future. And but if people who use Bitcoin for gambling keep holding Bitcoin it will be much safer and financially secure for their future, people will continue to gamble but it is best to gamble with local currency or stable coins.
However, many gamblers also like to gamble with local currency, so you should use different cryptos for gambling. It will be best if you use all coins except Bitcoin for gambling.

The usage of bitcoin depends on the owner of bitcoin of course. We all have our ways on using our bitcoins. Back in the days, bitcoin is widely prefer by gamblers because it a gateway for a payment method that is really anonymous. Stable coins back then aren't as popular as using bitcoin for bets, deposit and withdrawal. Casino owner also likes it as they can offer non-kyc casino to their customer. Actually I believe that there are people back then, who used bitcoin because they want to gamble on a certain casino. This is an actual use case before since majority of people doesn't really hold bitcoin before as people hasn't realize it's value potential back in the day.

[sompitonov]

Using Bitcoin for gambling is really different, I only use Bitcoin for holding purposes and I hold this Bitcoin to be financially secure in the future. And but if people who use Bitcoin for gambling keep holding Bitcoin it will be much safer and financially secure for their future, people will continue to gamble but it is best to gamble with local currency or stable coins.
However, many gamblers also like to gamble with local currency, so you should use different cryptos for gambling. It will be best if you use all coins except Bitcoin for gambling.

Of course, altcoins are probably better suited for deposits than Bitcoin due to their faster network speed, but there are other factors to consider. For example, many players regret having once gambled with Bitcoin and lost it, thinking that if they had held it, they would have been several times richer today. It's interesting why those who gambled with altcoins aren't happy that they at least gambled with it instead of holding it, which has fallen by 90% since then. And those who previously bet Bitcoin—that's precisely what sets them apart: they did so, meaning they decided not to hold it, but to have fun and bet on luck, so they shouldn't regret it.

[Renampun]

I get it, Bitcoiners do not want gambling to become associated with Bitcoin. But people are going to gamble one way or another - why should Bitcoin not capitalize on this?

If we look back, Bitcoin was actually used much more widely in gambling... it's just that as gambling platforms grew so much, more online casinos began using other crypto, and that caused Bitcoin to become less dominant as the primary payment method.. Even so, there are still people who use Bitcoin for gambling, but when compared to USDT or other crypto, its use is perhaps relatively smaller today.

But when it comes to whether Bitcoin is capitalized in this context, it depends on how the casino chooses to integrate it into their platform.. I think it's unlikely that online casinos will use Bitcoin as part of their reserves, due to several factors, such as Bitcoin's price volatility and the impact on their cash flow... They'd prefer to hold the majority of their funds in fiat and stablecoins rather than hold large amounts of Bitcoin as a reserve... Especially since online casinos are private companies, they consider their business needs more than holding Bitcoin as a reserve, which could expose them to Bitcoin's price volatility and create additional risks for their business.

[goldkingcoiner]

Sure, I understand that a casino cannot have volatile reserves. But I think many of you are confusing the current system of crypto casino with a pure Bitcoin system. Instead of 1 BTC = xxxxxxx dollars, why not a casino where 1 BTC = 1 BTC? Bet in Bitcoin, win and lose in Bitcoin. There would be no need to worry about the entire thing in terms of fiat. I am not saying they have to have 100% of their reserves in BTC, I understand they need fiat to pay off some costs and save some money for other possible expenses. But even 50% would be impressive and a clear signal to Bitcoiners that the casino owner too, is a true Bitcoiner and believer in BTC.

I see no disadvantage for the casino nor the gambler. In fact, the casino would become like Michael Saylor's Strategy but for crypto gambling. That could bring a lot of new people in. And the Bitcoin reserves themselves would become very profitable in the future. A win win for any casino.

[meser#]

Gambling is a huge business worldwide
-
IMF forecasts the market at roughly $807 billion in 2026 and $1.03 trillion by 2030. ¹

Instead of only a casino that accepts Bitcoin, an interesting innovation would be a casino whose economic surplus systematically becomes Bitcoin demand. Each bet lost would be a win for the Bitcoin economy.

And furthermore, most Bitcoiner gamblers would be more inclined towards a casino that hodls most of its reserves in Bitcoin. Bitcoiners would be encouraging this kind of adoption.

I get it, Bitcoiners do not want gambling to become associated with Bitcoin. But people are going to gamble one way or another - why should Bitcoin not capitalize on this?

sources:
1. https://www.h2gc.com/news/general/global-gambling-market-to-exceed-1-trillion-ggr-by-2030-driven-by-online-channel-growth

I really do not want Bitcoin and other cryptocurrencies to be associated with things like casinos, gambling, or money laundering.
Ever since leveraged trading was introduced on exchanges, Bitcoin has taken on the characteristics of gambling.
Given that so many people are already uncomfortable with that aspect, I find the idea of ​​using BTC for gambling to be completely illogical.
Perhaps 30% of the world is aware of Bitcoin.
For those who do not invest in Bitcoin and only have hearsay knowledge, seeing it become a tool for gambling creates a negative image for the currency.
I am opposed to this practice.

[Hatchy]

At some point I completely forgot that there are other currencies in existence to gamble with i only thought that the best currency to gamble with is Bitcoin, seeing this thread reminds me that other cryptocurrencies exist and all can be used for gambling depends on the one which is preferable to them, and due to the volatile nature of Bitcoin it will not be advisable for a business to store so much in Bitcoin but rather some amount can be invested in Bitcoin while others in a lesser volatile asset due to the demand of gambling it will not be safe to invest a whole some of their surplus in Bitcoin so they will not have issues of dips when they want to settle their customers.

It's strange to hear that you forgot about the other currencies. Most casinos that accept cryptocurrency usually offer around four different coins to choose from. I've only seen one casino that accepted BTC as the only currency for deposits. I can't remember its name, but it was one of the first crash game sites. They only offered crash games, and BTC was the only currency available for playing. That's why I said earlier that Bitcoin was actually the first cryptocurrency to become widely used in the gambling industry. Many of the old gambling sites started with BTC, and as players' preferences expanded, they began adding other cryptocurrencies as well.

[Somto9Light]

At some point I completely forgot that there are other currencies in existence to gamble with i only thought that the best currency to gamble with is Bitcoin, seeing this thread reminds me that other cryptocurrencies exist and all can be used for gambling depends on the one which is preferable to them, and due to the volatile nature of Bitcoin it will not be advisable for a business to store so much in Bitcoin but rather some amount can be invested in Bitcoin while others in a lesser volatile asset due to the demand of gambling it will not be safe to invest a whole some of their surplus in Bitcoin so they will not have issues of dips when they want to settle their customers.

Those casinos that offers deposits and withdrawals with different cryptocurrency has reserved assets in each of the cryptocurrency so if you are gambling with bitcoin and win, they have the money readily available except when it involves a huge amount. I don't really think it will be a problem if they hold more of their assets in bitcoin because if a gambler wins in other cryptocurrency, it is easier to convert part of the bitcoin especially when the market is experiencing exponential growth. If the market is also falling and they see that the other assets they have cannot be able to sort out the winning then they can use a stablecoin and do the swapping instead of using bitcoin to swap.

[boyptc]

It's already a part of it, the huge contribution that gambling itself for bitcoin was noticeable for the past years. It's one of the first industries where bitcoin has been utilized.

Yes, it seems like the OP posted this question in the wrong year. But if I'm not mistaken, they're referring to casinos—even just those that accept fiat—converting part of their reserves to Bitcoin, which isn't going to happen, unless we're talking about a very small portion.

I guess that most of the casinos now especially the crypto casinos will start to focus in having more of Bitcoin reserves.

They know how important it is as it backs the company and their operation that guarantees them that they can operate well having that reserve in BTC.

I see no disadvantage for the casino nor the gambler. In fact, the casino would become like Michael Saylor's Strategy but for crypto gambling. That could bring a lot of new people in. And the Bitcoin reserves themselves would become very profitable in the future. A win win for any casino.

Yeah yeah, exactly. I have realized that it's quite the same with the approach of Michael Saylor which worked for them.

[danadc]

It's impossible not to associate BTC with gambling, because online casinos offer the option to play with BTC, but it's not mandatory. It's only for those who wish to bet with BTC; it's a freedom that exists, anyone can choose what they want and how they want to play.

I play with BTC rarely, and it makes me feel good, but right now, since BTC is quite high and continues to rise, it hurts to bet because if I lose, those losses really sats.

[DrBeer]

I believe that some of those crypto casino has significant amount of Bitcoin that they also hold maybe not as much as those big institutions like Strategy but they could have a good amount.

The owners of the big casinos are themselves old time bitcoin enthusiasts and they would always try to store coins for the long term because they understand the potential of bitcoin and its future.

Therefore you can be rest assured that your assumption is correct and also that they use it to pay their bills, salaries and fund expensive foreign trips for their office and families over the years they have been running well.

Now those who are spending coins to gamble - that sounds counterproductive because they lose those coins and even more - then how are they supposed to support bitcoin or its future? The answer is that it is a personal choice to gamble with your bitcoin or not.

Sorry to butt in, but I doubt that all of the items listed are paid for with Bitcoin... It’s more likely that they’re paid for with Bitcoin that’s been exchanged either for fiat currency or for stablecoins, and that means "an increase in the supply of Bitcoin on the market" which drives down its price. Why am I skeptical? Because I know of a few hotels that accept crypto as payment, but I don’t know of a single airline that sells tickets for crypto.

[Floxynice]

It's already a part of it, the huge contribution that gambling itself for bitcoin was noticeable for the past years. It's one of the first industries where bitcoin has been utilized.

Yes, it seems like the OP posted this question in the wrong year. But if I'm not mistaken, they're referring to casinos—even just those that accept fiat—converting part of their reserves to Bitcoin, which isn't going to happen, unless we're talking about a very small portion.

I guess that most of the casinos now especially the crypto casinos will start to focus in having more of Bitcoin reserves.

They know how important it is as it backs the company and their operation that guarantees them that they can operate well having that reserve in BTC.

Casino operators should be careful of how certain they are that by having a bitcoin reserve, it will improve their operations. The risk of volatility should be another thing they should be concerned about. Volatility is the only reason many casinos may not want to consider a bitcoin reserve.

And, if they think that Bitcoin will back their company, then they should consider that that is not something new. Crypto casinos already exist and have been accepting bitcoin payments. Nothing much might change more than as it is now.

[xenomorfo]

It's impossible not to associate BTC with gambling, because online casinos offer the option to play with BTC, but it's not mandatory. It's only for those who wish to bet with BTC; it's a freedom that exists, anyone can choose what they want and how they want to play.

I play with BTC rarely, and it makes me feel good, but right now, since BTC is quite high and continues to rise, it hurts to bet because if I lose, those losses really sats.

I don't agree at all
bitcoin was born for other reasons by other people who were interested in privacy not gambling
it certainly lends itself to anonymity, but it wasn't born for that reason
one of many uses was found for it later

then the first real professional use was with silk road.

[Queen uloma]

I get it, Bitcoiners do not want gambling to become associated with Bitcoin. But people are going to gamble one way or another - why should Bitcoin not capitalize on this?

I don't understand why though. Since the very beginning when Bitcoin was not even worth one thousand dollars, it was already been used as a way to gamble on the internet and in a rather anonymous way.

Instead of denying that part of Bitcoin history, Bitcoiners are supposed to embrace it, recognize it and learn from it. Casinos gave Bitcoin it's first chance as an asset in the internet, and to this day, casinos and bookies continue to help Bitcoin by creating a real cash flow and demand.

At least, that is the way I see it. I am not embarrassed of using an asset which stater his history as a casino chip on anonymous casinos. It has evolved to be much more than that.

I don’t see anything shameful about bitcoin history. From the onset when people have start to use it for online gambling, and that period really helped bitcoin to get real users and attention from the internet. For me, we are supposed to accept that history and learn from it.

 Bitcoin can’t grow more than casino chip today, but gambling and betting still contributes to the demand and cash flow Around it. That’s how I see it.

[Mia Chloe]

Sure, I understand that a casino cannot have volatile reserves. But I think many of you are confusing the current system of crypto casino with a pure Bitcoin system. Instead of 1 BTC = xxxxxxx dollars, why not a casino where 1 BTC = 1 BTC? Bet in Bitcoin, win and lose in Bitcoin. There would be no need to worry about the entire thing in terms of fiat. I am not saying they have to have 100% of their reserves in BTC, I understand they need fiat to pay off some costs and save some money for other possible expenses. But even 50% would be impressive and a clear signal to Bitcoiners that the casino owner too, is a true Bitcoiner and believer in BTC.

Well personally I think instead of calling you to disadvantage it is better phrased as a risk that comes with some sort of disadvantage. Like a wrote earlier, volume matters a lot and most of these big firms cannot afford to bet on adjusting price at any point in time.

The only condition I feel this could actually be feasible is where is certain fraction of their profit within a given period of time gets accumulated in Bitcoin and held. This can be used to predict the best approach.