Why Bitcoin's gambling boom is only just getting started

[The Buzz]

CoinDesk has an interesting piece about the potential growth of Bitcoin gambling sites. The biggest obstacle is clearly educating users -- most people don't know what Bitcoin is or how to obtain it.

http://www.coindesk.com/bitcoins-gam...tting-started/

[chaumi]

...and proposed regulation? Wipes out the anonymity factor?

...and volatility? Rate/value fluctuations?

[Gamer]

Yeahhh... Bitcoin is unstable currency and exchange rate fluctuate widely. However, when you have some money to spend for fun, Bitcoin wallet is great way to save (and hide) some money for gambling. It seems that other e-curriences also get some ground, with Litecoin getting accepted, as well. Competition is good! Time will show!

[TheGooner]

I think the Bitcoin got a boost from the hype surrounding it's rise to USD1100 which was based on "greater fool" theory - eg buy for 700 and then sell for 800 who sells for 900 to someone who sells for 1000 etc.

Since January it's been slowly slipping back - is currently around USD 500 - and the "traders" have disappeared and demand is falling.

[edgarf76]

I have to say people love bitcoin. There is a company that is on our review sites that has accepts bitcoin. A few months ago there was a lot of talk about bitcoin in the forum so I figured I would add a section and do a press release. Had a decent turnout, better than expected ended up ranking for a competitive bitcoin key phrase without meaning to. It still converts.


FYI

My company does not get compensated via bitcoin.

[Gamer]

The problem is, how to value Bitcoin currency the fair way. What exchange rate is fair? $1000 or $400?
Bitcoin is not based on any economy.
Bitcoin is pure capitalism, pure demand/supply forces are on the stage

[buyonaut]

Too risky to get involved with it - just another hype that will crash sooner or later. Fruitful grounds for speculators and shady managers lol

[Sherlock]

Well I think it is still too early and OP is right. The only problem is that ppl are INCREDIBLY conservative.

When you look here: http://bitcoincharts.com/charts/bits...zm1g10zm2g25zv

But haters will hate. 6 months ago BTC was too unstable. Now BTC is pretty stable, but "too low". I find quite incredible that it has fallen from 1200 only to 500. Buch higher than previous stable level. For deregulated system driven by supply and demand it is impressive. One could see the same twice before. From nothing to 30, then fall to stable 5 level. Then rise to 200 and stable fall to 100.

How else ppl expect some vital currency to rise it's value? 1% per week? This is not going to happen with any commodity.

I would not be surprised to see next peak at 10k+ and then fall to 5K and then 2 or 3 more rounds can occur. The basic theory is that BTC is the hardest currency around so the limit is when the BTC monetisation will be the same as m1 money aggregate of all currencies.

There is 21 million BTC's and the m1 aggregate is roughly 3,000 billions USD in the USA. I guess approx. 30,000 USD is overall m1 aggregate around the world. If you divide 30 000 000 000 000 / 21 000 000, you get roughly 1 500 000, so the upper limit for BTC/USD is 1 500 000 exchange rate and it should not get probably much higher This would happen if all the world would pay only in BTC's and price would be stable... maybe.

Well do ot take me literally. What I wanted to say is that there is still a lot of space for BTC to rise.

[Gamer]

The big plus for BitCoin: there is 21 million BTC's and if the system not become hacked, no one can print more.
There is no one in The Colour House that have special switch under the table that could switch on printing presses of BTC's.
The minus is that it face competition from other e-currencies. I like LiteCoin personaly.
Anyway, in times when they print traditional currencies like crazy, we need alternative methods of preserving the value.
Sherlock, you have in mind to issue your own currency?
Have you considered to open e-bank?

[universal4]

In some countries it is considered currency.
In some countries it is considered commodities. It is subject to capital gains taxes in the US.
In some countries the use of it is banned or a ban has been considered.

Since it's inception it has been promoted as anonymous, and yet it is really only the exchanges that hide the wallet owners identity from the various governments since the exchanges are acting as banks must have identifiable information on wallet owners in order for them to be paid real currency.

Rick
Universal4

[Sherlock]

The limit imposed is both advantage and disadvantage. It is hard to predict how would BTCeconomy work.
Capitalism is driven by credit and monetary policy. Economy of inflation prooved more successuful than pre-WWII deflationary economy. BTC and the 21 million limit aims to deflation.

However i can imagine BTC banks and BTC-banknotes (not physical - but simply loan-derived money as they work by now). If this happens then even cryptocurrency economy can be inflationary, but then the 21M rule is not in place.

No Sherlock money. I would most probably fail. I am not good to promote something new. I am filthy parasite that only jumps on bandwagons. I was about tu buy BTC at 2, then 5, then 30, but EXACTLY as OP says, I found it too difficult. Then I was about to buy LTC when it was for nothing and again failed. Then I wanted to mine dogecoin, but failed again. Sticking with USD. Doing well for now . Nobody else is genius like Satoshi. But I envy the first people who made first clone-cryptocurrencies. They were quite smart and I blame myself for missing it. Now is too late with setting a new currency.

[Gamer]

"Real currency", good point Rick.
You just cannot go to supermarket and pay using BTC's.
You still need to convert them to real currency.
"have identifiable information on wallet owners" - indeed very weak point.
I think there BitCoin bank is needed that can issue debit cards so there no external exchanging procedure is needed.

[Sherlock]

In some countries it is considered currency.
In some countries it is considered commodities. It is subject to capital gains taxes in the US.
In some countries the use of it is banned or a ban has been considered.

Since it's inception it has been promoted as anonymous, and yet it is really only the exchanges that hide the wallet owners identity from the various governments since the exchanges are acting as banks must have identifiable information on wallet owners in order for them to be paid real currency.

Rick
Universal4

The BTC economy is waiting for one at least moderately stable country and bank that will handle it and will not care a lot. It is pretty sure it will not be from the 1st world. To consider it as commodity would be maybe better fro BTC funcionality, becase this way the big guys with conection from 0 taxes offshore can stabilize the core and the money flows will be easier than by regulated currencies (=extra advantage for BTC).

It can only hurt if states will recognize in early stages BTC as currency. The best is when people take it as currency but it is not recognised as currency.

But general definition of currency is

currency is anything that is used in any circumstances, as a medium of exchange

, so BTC will be as much currency as much people will use it. So far it is not a currency. The second leap of faith is still behind.

[Gamer]

Sherlock, it's not too late. E-currency like all other "goods" need some promotion.
Some e-curriences will fall into cyber-dust some will stay alive.
When you issue new currency, it need to become accompanied by reliable exchange platform + some marketing
... and your currency is alive.

[universal4]

Tulips were also a method of exchange, and there are countries today that still consider it a currency.....ummmm aren't there?

Rick
Universal4

[Gamer]

Tulips were also a method of exchange, and there are countries today that still consider it a currency.....ummmm aren't there?

Rick
Universal4

Dutch will "hate' you for this post. hahaha Let's imagine debit card that pay in tulip currency! Rocks!

[casinosenlinea]

If you are interested to know the current status of Bitcoin Spain I leave my article:

http://www.casinosenlinea.net/juego-...da-por-valido/

[TheGooner]

Bitcoins now valued at USD 460 ... and falling ...
Race back to zero ?

[edgarf76]

Can people short bitcoin? There is no actual exchange, it's person to person from my understanding. Is this correct?

[thedietberger]

Could still be too early days but those willing to take the risk will def reap the reward