How to Start a Bitcoin Casino and Avoid Being Exposed to Value Fluctuations
The online gambling industry is developing fast nowadays, and we can say that we have already reached a point where it has become extremely easy to reach a global audience. Almost 3 billion people around the world have internet access, and this number will grow significantly in the years to come. We can also see a huge development in the online financial system, especially since it has become easy for people to use online payment methods and purchase anything they like on the internet, with the simple click of a button.
Online casinos offer plenty of payment methods for those who are looking to play their favorite games online, without having to visit a land-based casino. Starting a Bitcoin casino offers a series of benefits that can make you reach customers from different parts around the world, without having to obtain an online gambling license.
The benefits of starting a Bitcoin casino
One of the most important advantages that come with using Bitcoin for your online casino is the fact that you can reach players from various parts of the world. Even so, there are places where Bitcoin transactions are prohibited, but the number of countries that do not have any Bitcoin-related regulations is far bigger than that of those which banned this cryptocurrency. For example, the worldwide-renowned gaming site Satoshi Dice has become popular among players from different parts of the world, and managed to have an impact all over the internet. Even so, it is important to create a solid marketing campaign that can help you reach a lot of players.
The great thing about Bitcoin casinos is that the industry is still at the beginning of its evolution, while experts are saying that Bitcoin is here to stay in the long term. Not many mainstream gaming sites accept Bitcoin yet, so, by starting a Bitcoin casino, operators can tap into a market that becomes more popular among gaming enthusiasts with each day that passes, but with a much lower level of competition.
Another great advantage for operators looking to start a Bitcoin casino is the fact that Bitcoin is not considered a real currency, which means that you will not have to obtain an online gambling license. It is useful to take advantage of a Bitcoin payment service, which would allow casino customers to deposit funds using Bitcoin instead of real money.
How can you protect yourself from Bitcoin price fluctuations?
If you are familiar with the evolution of Bitcoin during the past years, you should know that Bitcoin was very volatile during some periods of time. The price actually went up in November 2013, from $350 to $1,250, just to plummet to $600 in December 2013. Bitcoin’s value can be influenced by a lot of factors, and since this virtual currency is traded all around the world, without belonging to a certain economy, its value can change significantly from one moment to another due to events that are difficult to predict.
This is why operators who want to start a Bitcoin casino can take some measures to protect themselves from the volatility of Bitcoin. There are centralized and decentralized solutions that you can use, and it is important to know the ups and downs of each of them.
One of the most used centralized options available on the market is selling Bitcoins for fiat money, which means that you simply need to convert your Bitcoins immediately into your desired fiat currency (such as USD, GBP and more) at a Bitcoin exchange. This way, you will minimize the exposure to Bitcoin fluctuations. Even so, you should take into consideration that you could get less, but also more money if you don’t exchange your Bitcoins into fiat currency immediately. It is always a matter of speculation, but this is a good option if you are looking to play it safe.
Another option for operators looking to start a Bitcoin casino and protect themselves from market fluctuations is using derivative instruments related to Bitcoin. One of the ways to do this is to basically sign a contract with a company that offers derivatives with Bitcoin. There are several ways to do this, and there are a lot of companies that can offer you the possibility to hold your Bitcoins as stable currency though Bitcoin wallets. After that, the exchange company transfers Bitcoin to fiat money cards and converts it at market rate.
On the other hand, it is important to understand the risks of committing your money to such companies, especially since it might not be 100% safe to trust any online entity that your Bitcoins will not disappear overnight.
BY CASINOWEBSCRIPTS PUBLISHED 4 November 2015