Why You Should Not Use Bitcoin at Online Casinos
Bitcoin recently skyrocketed past $60,000 before retreating a bit. Since the latest Bitcoin bull market began, we’ve received numerous questions regarding Bitcoin online gambling. The most commonly asked questions are “should we gamble with Bitcoin?”
Today, we are going to give you some alternative advice. Instead of telling you why you should gamble at Bitcoin online casinos, we are going to give you some reasons why you should not bet with Bitcoin. Don’t take this as anti-Bitcoin, but rather as us providing you with all of the information necessary to make the best decision when gambling online.
Bitcoin Is Too Volatile
Look at the price of Bitcoin right now as opposed to March 13th. Bitcoin hit an all-time high of $61,283. Since that time, it has dropped over $10,000 in value (at the time of this writing.) When you read this article, the price could be significantly lower, or higher.
The volatility of Bitcoin needs to be a concern. For example, if you deposited 1 Bitcoin in December 2017, it was worth $19,650. Players then watched in horror as their deposits lost value and went down to just about $3,100 a year later.
While it is unlikely Bitcoin will drop back to $3,000, it could drop back to $20k. Can you withstand that type of price drop? You don’t get that type of volatility with fiat. A $500 fiat deposit will still be worth $500 a year or five years from now.
Bitcoin Requires Extra Steps to Deposit
One reason that some people avoid depositing with Bitcoin is that they have to go through extra steps to acquire it. In most cases, you have to buy Bitcoin at an exchange, send it to a personal wallet, and then send it to your online casino. Many people don’t have the technical expertise to go through all of these transactions.
Even if you use a third-party system to buy and transfer Bitcoin, you are still having to do more than with a standard credit card deposit or other forms of online casino deposit. If you’re someone that doesn’t like having to jump through hoops to deposit at online casinos, Bitcoin will not be for you.
Significant Tax Implications
Bitcoin is a bit of a double whammy when it comes to taxes. You must claim profits on Bitcoin much the same way that you would for gambling. The difference is that you will also be taxed on the cryptocurrency based on the amount you acquired it at.
For example, if you deposit $50,000 worth of Bitcoin and run it up to $60,000, you will be responsible for the capital gains on the Bitcoin when you cash it out. That’s in addition to having to pay taxes on your online gambling winnings. Exchanges are now required to send paperwork to tax authorities regarding crypto payouts, so you cannot avoid it like you could in the past.
Bitcoin is Better as a Store of Wealth
While Bitcoin online casino deposits are becoming increasingly popular, you will want to reevaluate using it for deposits during this bull market. Bitcoin is much more suited as a store of wealth rather than a utility coin. As such, you should consider using Altcoin to play at Bitcoin online casinos. We’ve talked at length about why you should use Altcoin for deposits, so we won’t rehash those points.
In the early days of Bitcoin gambling, the price was such that it made sense to try and grow it at online casinos. Nowadays, it may be better to hold onto your Bitcoin and try to grow your Altcoin instead. Bitcoin is better to pad your bank account and your retirement while Altcoin is a much better option for funding your online casino bankroll.