How much is the Mega Jackpot in Bitcoin?
Thinking about Mega Moolah's progressive jackpots got us to wondering how much the guaranteed minimum jackpot would be if it were paid out in Bitcoin (BTC).
Answering the question is truly an academic exercise inasmuch as Mega Moolah has never paid out in BTC. However as crypto gains popularity we could see the first Bitcoin Mega Moolah winner soon. In any case it is still fun to speculate.
Mega Moolah players dream of winning the Mega Jackpot. Those lucky enough to have done so never have to worry about paying their bills any longer. Mega Moolah has paid out millions in jackpot winnings in the years since its release. The impressively large jackpots are what make this particular jackpot video slot the most well-known in the online gambling world.
Making the conversion
Figuring out the value of the minimum Mega Jackpot in BTC requires a multi-step equation. We will not lay it out in detail here, but we will summarise it. The first thing to know is that most often the price of BTC is measured in U.S. dollars. The U.S. dollar is the world's reserve, so most cryptocurrencies are measured against it.
In order to figure out the BTC value of the Mega Jackpot, we start with the £1 million guaranteed by Microgaming as the minimum Mega Jackpot amount. The 1 million guaranteed is the same in USD, EUR, CAD and NZD. These currencies all have a multiplier of 1.
Some long-term adjustments are made for currencies weakening or strengthening. For example a player from Sweden will play Mega Moolah in SEK, which in the game has a multiplier of 10x. The guaranteed jackpot in SEK is therefore 10 million. The minimum and maximum bet sizes are adjusted as well in line with the multipliers. For example, a UK player may place a minimum bet of 0.25p per spin (all lines), while Swedish player would bet 2.5kr.
When it comes to Bitcoin we can avoid all of the complicated math simply by looking up the USD-BTC conversion rate online. At the time this post was written, Bitcoin was trading at around $10,000, after falling $1.4k just last night. That would make the minimum guaranteed Mega Jackpot worth 100 BTC.
The Mega Moolah jackpot currently stands at £3 million (also in USD, EUR, CAD and NZD). This means that with Bitcoin trading at around $10,000, the jackpot now is worth 300 BTC.
No Bitcoin payouts (yet) for Mega Moolah
Bitcoin fans may be disappointed that Mega Moolah has never paid out in BTC. On the bright side, it was not until about 18 months ago that you could even play Mega Moolah with bitcoins in a licensed casino. Microgaming used to not allow it because of licensing issues.
Of course, some payment methods such as Skrill and Neteller, got around the Microgaming policy by converting BTC to fiat on-the-fly, then using that fiat to contribute to the progressive jackpots Mega Moolah is known for.
That is good for online gamblers who are fans of both Bitcoin and Mega Moolah. But there are also multiple factors why online casinos avoid direct crypto deposits.
BTC is too risky
We would be willing to wager that cryptocurrency volatility is the number one factor behind many online casinos deciding to avoid accepting BTC for now. If you are Bitcoin trader, you know exactly what we are talking about here. The price of BTC can change in an instant - and quite drastically, too. BTC is capable of gaining or losing more than 10% of its value in mere minutes. Just last night Bitcoin dropped $1,400 in 24 hours.
Imagine you win the Mega Jackpot in Bitcoin and in the time it takes for you to receive the BTC the value has dropped significantly. Your 300 BTC jackpot could be worth a lot less in fiat. On the other hand, let's say you have that same scenario except that BTC climbs 20%. Now the jackpot is worth more. That could put a strain on financials for any business.
In the end, BTC is just too risky for many online casinos. Let us look at some of the other risk factors:
- Regulatory Concerns - Gambling operators located in various jurisdictions offer the Mega Moolah video slot according to whatever regulations are in place where they are. Guess what? Cryptocurrency regulations in those jurisdictions can differ widely.
- Taxation - Hand-in-hand with regulatory issues are additional issues related to taxation. How people report their gambling winnings differs between jurisdictions. But cryptocurrency earnings are also taxed differently. So if a payout were made in BTC, would it be taxed as gambling winnings or capital gains?
Bitcoin offers a lot of good things to a lot of people in the developing world but any business dealing with large amounts of BTC requires staff who understands crypto and trading. This puts an extra strain on any business having to hire specialised people.
Spending your jackpot winnings
It's time to put all of the negative talk to bed. Let us discuss something a bit more fun instead: what you would do with your winnings if you were to win the Mega Jackpot in Bitcoin? Let's assume you won the current jackpot worth around 300 BTC. What would you do next?
The first thing you should probably do is move a portion of your BTC into cold storage. Get it off-line and stored on either a removable drive or a paper ledger. The second thing you would do is back up that cold storage. Then you would take the original and all of its backups and store them in separate, secure locations. Think of it as your crypto nest egg.
Now you can start thinking about things like spending and investing. Owning 300 BTC would certainly put you in elite company. You wouldn't quite be what is known as a Bitcoin whale, but you would still own a whole lot more BTC than majority of other coiners. As we see it, here are your options:
1. Sit on it
You can take advantage of Bitcoin's capabilities as a store of value simply by sitting on your winnings. What do we mean by that? We mean you put some of your BTC in cold storage and then leave it alone. You do not convert any of it to fiat. You do not use any to acquire other cryptocurrencies. You do absolutely nothing with it.
The point of sitting on your BTC is to let it grow as its price increases. Considering the price of BTC has more than doubled since the start of the year, it is entirely possible Bitcoin could soon be worth $100,000, or more. All it requires is another financial crisis, bail-ins, and/or currency wars to heat up. Are you willing to take the risk? You could suddenly find yourself with a billion dollars had you squirreled away just 100 BTC.
2. Liquidate it
Your next option is to liquidate your BTC. To do so, you would offer it for sale on a cryptocurrency exchange. You probably wouldn't want to sell it all at once as flooding the market could mean you get less for it. Instead, you might sell it over the course of 10 or 20 smaller transactions.
Liquidation instantly turns your BTC into usable fiat. However, it also eliminates the possibility of growing your BTC. So it's a trade-off. There is also the risk of losing value should the price of BTC fall significantly before you have time to sell all of your coins.
3. Diversify your holdings
A third option is to diversify your holdings the same way you would if you were in the stock market. Diversification is a matter of converting some of your BTC into other digital assets. You could acquire some Tether, and invest in Ethereum. Why diversify? Because diversification makes a portfolio more stable.
By spreading out your holdings into different cryptocurrencies, you are reducing the risk of heavy losses. Should one of your coins fall drastically, it is assumed the remaining coins would not. This reduces your losses by concentrating them only in the one coin.
4. Give some away
Yet a fourth option is to give away some of your BTC to those in need. There are as many ways to do this as there are people who could benefit from your charity. For example, there are some charities that accept cryptocurrency donations. You could give coins directly to family members and loved ones so they can pursue their dreams.
Maybe a family member has a large medical bill that needs to be paid. You could transfer some of your BTC to that family member, who could then turn around and liquidate it. He or she could use the fiat to pay the outstanding bill.
Mega Moolah has never paid out a Mega Jackpot in Bitcoin. But that need not prevent you from playing Mega Moolah with Bitcoin as your deposit method. Every time you play represents another shot at the Mega Jackpot.
Byline: This article was published by Mega Moolah expert Henry. Media and other enquiries.
Next article: Have we seen our last U.S. Dollar winner on Mega Moolah?