The crypto industry is penetrating ever more intensely into our lives, capturing newer sectors by the day. We have already written about how blockchain will affect science, music, and pop culture, but cryptos also affect betting rates, as now anyone can bet almost any cryptocurrency on any event. There is demand for almost everything. Due to the World Cup in Russia, interest in the digital bookmaker, or “bookie,” industry has increased significantly. For example, according to an expert from RBC, companies expect a twofold increase in the aggregate monetary volume of soccer betting throughout the whole event, and the number of bets can increase by 40% compared to the previous month. Cryptocurrency brokers will certainly take advantage of such a significant sporting event. What are their main features?
How Are Bets Made?
Bookie crypto services are divided into three types. The first ones allow users to independently form a bet. Anyone can create a smart contract for any event, be it the outcome of a match or the result of a presidential race. After that, they set the coefficient and date of the event. Then those who saw this contract and those who are interested can bet their cryptocurrencies on the most likely outcome in their opinion. In this case, the participants' investments multiplied by the coefficients should be less than or equal to the pledged contribution of the maker of the contract. If this condition is not fulfilled, the contract is automatically frozen until the bookmaker inputs the necessary amount. In this way, payments to all those who make bets are guaranteed.
The second type is more similar to traditional gaming platforms. In fact, these are the usual centralized online platforms differing only in that the bets are accepted not in fiat, but in cryptos.
The third type is the ordinary online (or even offline) platforms where one can bet on an event in the crypto industry, such as when Pavel Durov will launch his TON, whether Bitcoin will drop to $1,000, will Vitalik Buterin finally accept the job offer from Google, whether Satoshi Nakamoto's identity will ever be revealed, etc. Gamblers willingly bet on the likelihood of such events. Strictly speaking, this kind of bookie cannot be attributed to crypto bookmaking, since it does not affect the mechanism of the rates themselves, but it cannot be denied that the very phenomenon of cryptos and the events connected with them arouse the interest of avid players wishing to try their luck.
It is interesting that, according to a representative of one major site specializing in sports betting and events in the crypto world, the latter can already compete with some of the most famous types of sports. Hockey and soccer, of course, still cause much more excitement. And direct cryptocurrency bets still make up a small share of the revenue of centralized sites.
Betting on Bitcoin Growth
Bitcoin is a super volatile currency, whose rate can hardly be predicted by even the most solid experts in the industry. Therefore, betting on Bitcoin fluctuations is gaining popularity. It is noteworthy that since legal brokers in Russia can only operate with rubles, they take bets on when Bitcoin payments will finally be legalized in the country and when the legislation in the crypto sector will be properly formulated. One of the most famous opinions of experts is that of Tim Draper, who is known for having made his fortune through his early investments in Twitter and Skype. His predictions are of particular interest to crypto enthusiasts since back in 2014, he announced that the price of Bitcoin would rise from $300 to $10,000. In 2018, he remains true to his bullish beliefs. "By 2022, I'm thinking of $250,000 for Bitcoin. Believe me, it will happen. They will think that you are crazy but believe me, it will happen, it will be amazing," he told at the Blockparty this year.
What Are the Pros and Cons for the Players?
Anonymity. For people hoping to break the jackpot, this factor may become almost decisive when choosing the format of their gambling adventure. And it is not just a matter of unwillingness to advertise their winnings or pay taxes to the state. We are talking about security. The winners of usual fiat lotteries, whose names were made public or leaked illegally to the masses, were robbed, killed, or scammed out of their winnings in one way or another. Registration is generally not required or is very swift on bookie sites that accept cryptocurrencies.
Speed. The winnings are transferred instantly. If you transfer fiat to a bank card, then you usually need to wait up to five days. With Bitcoins, you will get them in your wallet instantly.
Additional payments. You do not need to pay an additional bank commission for transactions.
The disadvantages include the fact that such gaming platforms are in the "gray zone" of the legislation of many countries. Because of this, in case of fraud on the part of even a site that has been checked and recommended by experts, it will be very problematic to hold it accountable with legal instruments. In addition, until the legal status of such companies is finally established, it is difficult to say whether players violate the legislation by their actions or not. One way or another, it is already obvious that bookie crypto sites will develop in the future, as the demand for such services is steadily growing.