What You Need To Know About Cryptocurrency For Sports Betting If You Have Not Used Bitcoin
Cryptocurrency for Sports Betting
There are two kinds of people in the world: Bitcoiners and no-coiners. No-coiners don’t ‘get bitcoin’ because to understand it you have to own it and use it. It’s even better to mine it to make the mental jump.
1. Bitcoin is backed by nothing, so how can it have value?
National currencies like the US Dollar are backed by nothing but a promise, which is why currencies like the euro, dollar, the pound, not to mention currencies like the Venezuelan boliva, reichsmark, lira, peseta and dinars have lost 95% or more of their value in the last 100 years.
The backing of their currency is basically from trust, which everyone is is usually confident in ‘fiat’, “dollar” type of currencies and is also high among users of cryptocurrencies. Cryptocurrency has strengths and weaknesses with trust at this stage, but ultimately bitcoin has proven to be as good and in many cases better money than ‘fiat’ when it comes to transactions and ultimately all money, gold, commodities are backed by its ability to transact.
2. Isn’t Bitcoin for Sports Betting a bubble?
Of course! Yes indeed, it was. Yes it will be. Many of the dotcom companies 20 years ago created a bubble that burst and now they rule the world. Bubbles have a bad rap because they leave a lot of greedy people crying but they also leave huge industries behind. Think about Holland as a country which produces $2 billion a year of tulips, and that was one of the biggest financial bubbles of all time but they also left an industry behind that is still going strong 300 years later.
3. Bitcoin is a ponzi
Absolutely Not! A ponzi scheme is a financial gimmick where people are promised specified returns, similar to Madoff’s fund. These returns are paid out from new money coming into the fund from new investors, not from monies invested. Many pension funds from the United Kingdom and elsewhere are ponzi schemes. Everyone is exposed by this and not unique to the private sector and will always be repeated. But, Bitcoin is merely a currency you buy, hold or transact with. It has no inherent return beyond an unknowable potential for capital gain based on demand for it to transact or use as a store of value. So it is not a ponzi scheme whatsoever.
4. Isn’t cryptocurrency in sports betting just another way for criminals and terrorists to transact business?
It will be a long, long time before cryptocurrency even registers alongside the transaction volumes of cash with criminals. Did you know 90% of dollar bills test positive for cocaine so it’s kind of ridiculous that the occasional criminal will use cryptocurrency to do their dirty business. Most cryptocurrencies are actually more traceable than cash transactions and many honest people will say that is a negative for bitcoin, so beyond the media hype, this is no more an issue than music pirates and pornographers using the internet to peddle their illegal music, pictures and ways. This is how new technology works, the initial group of adopters are the opportunists and not all of them are nice people. Then comes the mainstream which is me and you.
5. Bitcoin is just a fad in the sports betting industry.
Bitcoin is just an application of the revolutionary new technology broadly called blockchain. All Blockchain is triple entry bookkeeping for the most part. Clearly to run most businesses you need bookkeeping, accountants and everything and people got on just fine with that for a few thousand years. A huge breakthrough in accounting was double entry bookkeeping, basically meaning that when a company borrows money from its bank, the company's Cash account will increase and its liability account Loans Payable will increase. So changes in balances are all recorded. Debits must equal credits etc. This was a key foundation to the explosion of our economy. Triple entry bookkeeping is the next step forward for business and economics; it takes accounting, resource allocation and value to a higher plane. In triple entry bookkeeping changes in balances are the recognized events. So it is an enhancement to what was double entry by involving outside parties cryptographically sealed by a third entry. Which will be our future.
- Ancient Aliens and the ancient world = clay tablets and single entry bookkeeping
- Today and the modern world = double entry bookkeeping
- What is the Future = triple entry bookkeeping
Blockchain is therefore a huge step for economics and cryptocurrency is the fuel for it. Triple entry bookkeeping is the wave of the future. So when I say that blockchain and bitcoin is the wave of the future, this is why.