Could 2019 be the Year of Bitcoin Gambling?
The last couple of months of 2018 were not kind to cryptocurrencies. Many cryptos, including Bitcoin, lost significant value from mid-November through the end of December. The price slide has many experts wondering what 2019 will bring. Could this year be the year of Bitcoin gambling?
It would be irresponsible to attempt to forecast cryptocurrency's year ahead by framing it solely as an online gambling issue. However, the principles of Bitcoin gambling are such that they do offer us a glimpse into the larger cryptocurrency space. Online gambling seems ripe for further expansion of cryptocurrencies, so we expect that whatever direction crypto takes on a large scale will be observed on a much smaller scale within the gambling arena.
The future of ICOs
Experts started predicting at the beginning of 2018 that initial coin offerings (ICOs) would begin a long and painful spiral of death that would eventually end with more alt coins than not being under water. According to Coindesk those predictions have become reality.
Some 86% of ICOs launched in 2017 are now below their original listing price. Upwards of 30% have lost nearly all their value. An investor buying a number of ICOs to round out a cryptocurrency portfolio from among 2017 ICOs probably lost close to 70% in 2018.
It's likely that 2019 will see a transition away from ICOs in favour of enterprise-level development. In other words, fewer investors will be buying cryptocurrencies as hard assets, investing in blockchain and crypto platforms for enterprise purposes instead.
If he's right, the question for us becomes one of how it will affect Bitcoin gambling. We can begin to analyse that by starting with the volatility question. Remember, volatility is one of the factors that most frightens people about cryptocurrency.
Less investment equals lower volatility
The volatility in cryptocurrency markets is no different than the volatility in stocks and commodities. Prices can swing wildly in either direction based on the most insignificant piece of financial news. Good news encourages people to buy, which sends prices higher. Bad news causes them to sell, sending prices lower.
If indeed ICOs are dead and there's an emergence of enterprise crypto, there will be fewer investors looking at cryptocurrencies as assets. They will go from being the cryptocurrency version of stock market investors to being angel and private equity investors putting money into platforms they hope to develop into big businesses.
The end result of this mindset would be more stable pricing. Coins like Bitcoin and Ether would settle in at stable prices that would rise or fall based on the development of enterprise applications rather than the whims of nervous investors.
In turn, that would take much of the fear surrounding cryptocurrency volatility out of the equation. More online casinos would entertain accepting cryptocurrency deposits with less fear that they could lose their shirts. Furthermore, all it would take is for one or two big names to fully embrace Bitcoin gambling and the rest of the industry would follow.
Cryptocurrencies in niche industries
A second thing to consider for 2019 is the reputation cryptocurrencies have within niche industries. Coindesk profiled one such business in a January 5 piece. That business, Lynx Art Collection, is a small art retailer based in the U.S. state of Florida, owes nearly 75% of its 2018 sales to Bitcoin, Ether, Litecoin, and Monero.
Data suggests the average retail cryptocurrency purchase in 2018 was in excess of US$678. That is nearly double the amount of the average retail purchase made in 2017. The data shows that even bull market conditions during 2018 did not dissuade average consumers from using their favourite coins to make retail purchases.
The point is that niche industries are doing quite well with cryptocurrency payments. You may not be able to go down to your local market and purchase the day's groceries with bitcoins, but you can do a lot of other things - including gambling online at properties such as the Mega Moolah Bitcoin Casino.
To say that online gambling is a niche industry is to state the obvious. Gambling, in general, caters to a very specific kind of audience. Online gambling is even more specific. It targets people who enjoy playing casino games but either cannot get to a casino or would rather play from the privacy of home.
The strength of cryptocurrency as a tool for consumer transactions probably rests in niche industries. If their assertions prove correct, more enterprise-level development and fewer ICOs in 2019 would play right into more widespread adoption of alt coins among online gambling operators. You may be interested in reading our tips on playing Mega Moolah with bitcoin in this article.
A dual cryptocurrency stream
It can be hard to put your finger on the direction of cryptocurrency when the only thing you have to work with is speculation. We could write all day on whether 2019 will be the year of Bitcoin gambling but without concrete evidence, all we can say is what we think might happen. We say all that to say this: there does appear to be sufficient evidence suggesting the emergence of a dual cryptocurrency stream this year.
Whether you call it bifurcation or segmentation, the point is that we are beginning to see signs of two different streams of cryptocurrency moving forward. The first stream is what was originally envisioned by Bitcoin developers way back when: a transactional stream through which average consumers transact more and more of their business using their favourite coins.
The second stream is one where governments and central banks get involved with cryptocurrency. The idea behind this second stream is to stabilize the cryptocurrency space with the end goal of replacing current fiat currencies with digital alternatives.
As we have mentioned here at MegaMoolah.com, that some national governments are already working on ways to utilize cryptocurrency for processing public payments. Chile are creating a new cryptocurrency payment platform, the U.S., Canada, and the UK are also actively working on their own stablecoins.
Stablecoin can be pegged to a currency, or to commodities (such as precious metals or industrial metals, etc).
National governments are now actively trying to figure out how they will regulate cryptocurrency with the understanding that it is not going away. In Japan, they are seriously considering adopting bitcoin as legal tender. In Sweden they are actively developing a regulatory framework that they hope will encourage cryptocurrency without the need for excessive government controls. In Korea it has been reported that up to 30% of salaried workers have invested in bitcoin. In other countries such as Brazil or anywhere in South America bitcoin is widely used. Indeed, the list goes on.
The dual streams and online gambling
Online gambling would benefit from both cryptocurrency streams. On the consumer side of things, gamblers looking to make deposits and withdrawals via cryptocurrency would likely choose the most stable coins with the best value. They would look for online casino operations willing to accept their chosen coins while eschewing those that do not.
The more popular the consumer stream becomes, the more niche industries like online gambling will be willing to dive into the crypto waters. That means more opportunities for consumers and business owners alike.
Online gambling operators would also benefit from a stronger government stream. Even though this sounds counterproductive to the core principles of cryptocurrency, the right kind of government involvement could be just what crypto needs to move away from the asset class and into the consumer class. Such a transition ultimately helps online gambling operators.
The right kind of government involvement should mean the introduction of more stablecoins. It should mean less speculation among investors and less volatility as a result. The only hitch here is one of regulation. If governments and central banks attempt to manipulate cryptocurrencies the same way they do fiat, all bets are off. But if they let market forces control Bitcoin, Litecoin, Ethereum, etc., all will be well.
You can be part of the action
So, will 2019 be the year of Bitcoin gambling? Time will tell. Conditions currently look favourable for more cryptocurrency in online gambling and less emphasis on investing in crypto assets. In the meantime, you can get in on the action by embracing Bitcoin gambling this year.
Becoming a Bitcoin gambler is pretty straightforward. You start by procuring a digital wallet to store your coins in. Digital wallets can be software, hardware, or even paper ledger instruments. Anyone interested in a software wallet can obtain one online through an exchange or directly from a crypto platform.
With wallet in place, you are ready to buy your first set of coins. The easiest way to do this is to visit an online exchange, which is usually recommended by the wallet service, or you can find your nearest Bitcoin ATM and buy with cash, or you can find a peer-to-peer crypto exchange such as LocalBitcoins.com. Purchasing coins will result in an automatic transfer from the seller's digital wallet to yours. Then you are ready to play Mega Moolah with your bitcoins. You may also want to read our article Can I play Mega Moolah with Bitcoin?
This year could end up being the year Bitcoin gambling explodes across the internet with the first ever bitcoin win on Mega Moolah...! Even if it doesn't, there will still be plenty of opportunities for you to enjoy playing Mega Moolah. If it does, 2019 could be the year you come to truly appreciate cryptocurrency.
Byline: This article was published by Mega Moolah expert Henry. Media and other enquiries.