bitcoin gambling

If bitcoin is allowed to scale it will take 5% of the gambling market within 3 years leading to a price of $2000





If bitcoin is allowed to scale it will take 5% of the gambling market within 3 years leading to a price of $2000
Roughly 50% of Bitcoin transactions are gambling related
Bitcoin is the fastest growing sector of the gambling industry
The attributes and characteristics of bitcoin such as speed, anonymity and borderlessness make it perfect for gambling
Laws and regulations make gambling with government currency very high friction
Comparison between bitcoin and government currency gambling
Government currency gambling for the player in friendly jurisdictions such as Australia and the UK
15 minutes for sign up and deposit if you use a credit card, otherwise 2 business days for bank to bank deposit
Send in front and back of credit card, government ID and a utility bill then wait for verification before you can withdraw
2 business days for withdrawal
The operator can charge your credit card, sell your information or have it stolen and push market you marketing material you don’t want
Multiple records available for taxman, banker, spouse, police, et cetera
Government currency gambling for the player in restrictive jurisdictions such as the USA, China and India
Fee to the operator for depositing less than $1000
Limited deposit options are high cost, slow and inconvient
1 free withdrawal via cashiers check per month, $50 for every additional withdrawal
Deposit and withdrawal times up to 2 weeks
Bitcoin advantages for the gambler
Free and instant deposits and withdrawals of any amount 24/7
Anonymity gives fast sign up and privacy for personal, legal and tax reasons
Better payouts due to operator cost savings. This will become 0% House Edge
Provably Fair Gambling prevents rigged games by making it impossible for the casino to know or decide what the next card or number will be
Government currency gambling for the operator
3% average transaction fees
Constant chargebacks and fraud
99% visitor dropout rate during the sign up and deposit process
Bitcoin advantages for the operator
No transaction fees, chargebacks or financial fraud
Anonymous customers means no know your customer and ID fraud
Reduced friction means far higher conversion rate, 95% dropout instead of 99%
Not dealing with banks means less need to comply with laws, taxes and licence burdens
Bitcoin will change gambling forever
$3 trillion is gambled every year in the current high friction high house edge paradigm
This will increase with the low friction, low house edge and the new possibilities bitcoin gambling provides
Gambling will not be considered such a social ill when 0% house edge products mean gamblers usually break even
Gambling is good for bitcoin and the price
The bitcoin gambling industry pushes the envelope of technology and censorship resistance moving the bitcoin ecosystem forward
Bitcoin’s price has and will increase due to gambling volume
Bitcoin will take 2% of the gambling market within 3 years and 5% within 5 years
5% of $3 trillion is $150 billion, bitcoins current yearly transactions are $20 billion. 20 goes into 150 7.5 times pointing to a 7.5 X price increase from $275 to $2062 within 5 years
March 2016 Update
So far my prediction is on track, yearly transactions are now $32 billion and the price has gone from $275 to $430. To update the figures 32 goes into 150 4.6 times pointing to a 4.6 X price increase to $1978.

For this to happen we need bigger blocks and for the bitcoin network to handle a lot more transactions per second which it can and will do, however the current delay in enabling this is a major drag on adoption and the price.

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