Betting With Bitcoin

Betting using a volatile asset like bitcoin sounds crazy to some, while plebs who think it’s the ultimate store of value would probably freak to see people wagering bitcoin as it were casino chips. However, it is your property nonetheless, and you can do what you like with it, even if others think it’s rash or a waste of satoshis.

Some people prefer to bet using bitcoin because they can access specific sites or betting markets that their local banking rails don’t want to do business with or cannot access.

In other cases, bitcoin is the best option because it operates 24/7 all year round, so you can always deposit and withdraw funds at any time since you have complete control of your bitcoin when using a wallet where you own the keys.

Others like to use bitcoin because it keeps their gambling data separate from their banking data, and they feel it can eliminate some prying eyes on what they do with their money. Keeping some sats away from the Missus, I see, you sneaky bugger.

Betting with bitcoin doesn’t mean you’re any better off; in fact, it means you should be even more vigilant about the funds you deposit or withdraw as you are operating outside the purview of the banking system. 

Doxing yourself

Depending on the gambling site you’re using, you may need to conduct KYC to prove your identity before payout or deposit. These KYC accounts then link your identity to specific bitcoin addresses. 

It’s crucial that if you do KYC, ensure that you never re-use the same bitcoin addresses and use conjoins or mixers to cover your bitcoin transactions so no one can track you once you’ve left the gambling site with your funds or funded your account. 

Not your keys, not your coins

Most betting services are centralised entities and keep your bitcoin on your behalf if anything were to happen to the site; if they mess up any key management. If your account is compromised, this could result in the permanent loss of your bitcoin.

Losses can compound

If you are intent on using bitcoin as your medium of exchange for betting, you need to remember that while winnings are compounded by bitcoins annual appreciation, so too is bitcoin losses. That bitcoin you lost will continue to appreciate in value, and your losses will increase in fiat and purchasing power terms. 

If you are betting using fiat and perhaps only cash out into bitcoin, this helps mitigate some of the losses you would have felt had you put in a certain amount of bitcoin and left with perhaps more fiat value but fewer satoshis.