With demand for online betting now through the roof, some people make the assumption that the firms and providers behind many of the world’s leading betting sites are automatically in the money. But the reality of the situation is that some betting sites are struggling when it comes to their finances. After all, it’s a saturated market – and for every betting site doing well there are several more struggling to compete and get their share of the demand.
But all is not lost. There are ways for online betting sites to get out of a financial funk, and offering Bitcoin betting is one such way. The best Bitcoin betting sites, which can be found at bestbettingsites.co.uk are discovering this to their advantage. Here’s some more information about how and why they’re doing it.
What is Bitcoin betting?
In the standard business model of a betting site, the stake in a wager is usually composed of fiat money. But this is starting to change, and Bitcoin betting providers are instead offering either entirely Bitcoin-based wagers or a mixture of both Bitcoin and fiat. In terms of process, this requires a bit of a change on the part of the provider because it means that they have to establish new systems such as Bitcoin wallets to accept incoming deposits and pay out winnings.
But in terms of value, there’s not necessarily a lot of difference. Bitcoin is highly liquid and has a significant cash value when converted, so it is similar in some ways to offering wagers in a second currency. One thing to remember, though, is that Bitcoin is volatile – and while its price can rise again after a fall, it may not rise back to previous highs.
But for a provider, it may well be worth sticking to currencies like Bitcoin for this reason: while it is volatile and has seen price dips over the years, it does have some value to begin with, unlike some other crypto coins, which at the point of an initial coin offering may essentially be devoid of value.
How does it benefit the provider?
As a provider of betting services, there are several benefits of offering Bitcoin to customers as a way to wager. Once a Bitcoin processing system is set up, for example, it can actually be easier to monitor than fiat cash as it often comes without the same degree of cumbersome regulations that govern the exchange of fiat currency, allowing you to free up at least some compliance staff and resources to work on other projects.
Another way in which it benefits the provider is by differentiating them from their competitors. Many online betting providers, even those that are surging ahead and doing well for themselves, have not yet embraced Bitcoin. Customers who want to bet using Bitcoin, then, have precious few options – and as a result, this is a market niche that is far from saturated.
For the customer, Bitcoin betting offers many advantages. Bitcoin operates on a decentralized network known as Blockchain, which means it’s far harder to trace transactions compared to other financial services providers that are more traditional in nature, such as banks.
Customers who are privacy-conscious are perhaps more likely to want to bet with Bitcoin. By stepping in and providing the option to bet via Bitcoin, providers can capture customers who currently feel excluded from betting on privacy grounds.
What are the challenges?
Setting up a Bitcoin-friendly betting platform is, of course, not a simple task. It takes some effort to get started with, especially when it comes to setting up wallets and ensuring that the volatility mentioned above does not cause issues. But it is certainly possible to manage these challenges. Building a long-term business plan that does not require the immediate cashing in of the Bitcoin reserve can help mitigate against temporary falls in price, for example.
By doing some research into the scope of Bitcoin betting or even by hiring a professional who can explain the systems to you and set them up, it’s possible to overcome these challenges and set up a profitable inflow of Bitcoin-based wagers.
Bitcoin is sometimes presented as a catch-all solution to any financial problem – and while it’s not a silver bullet, it can sometimes be a realistic avenue for profit for both businesses and individuals. For a betting provider, it offers a wide range of benefits. From the larger customer niche it can offer, to the more relaxed regulatory framework, Bitcoin betting could well solve financial issues of all sorts.