Bitcoin and Sports Betting FAQs
Updated: September 2023
For some online gambling betting on their favorite sports games with bitcoins is standard operating procedure while others don’t even understand what bitcoins are and how they can be used for sports betting. Here are some of the issues that can arise when online sports betting are done using bitcoins.
Bitcoin Use? Legal or Illegal?
The laws regarding use of bitcoins vary depending on the jurisdictions and laws where you are. However, in most parts of the world there are no laws against using bitcoins. Having only been in existence for slightly more than four years the law has not quite kept up with technology when it comes to bitcoin use. Most states in America have not bothered to update their laws to reflect the use of bitcoins. Most governments throughout the world still struggle to understand what exactly bitcoin currency is.
Though governments may not yet fully understand what bitcoins are they are very aware of their presence. Government regulators do have a fear that bitcoins can and will be used to launder money illegally, since bitcoin transactions can always be done anonymously. Once the bitcoin catches on full force it is likely to cause competition with more typical forms of money, such as Euros and the USD.
Though Europe and the United States have yet to unfairly treat bitcoins as a currency they are keeping a close eye on their use. In fact both the European Banking Authority and the FBI have made documents public that speak about illicit Bitcoin use.
The way in which governments all over the world choose to regulate bitcoins will have an effect on how many people throughout the world accept bitcoins as a viable form of currency and will affect the legality of bitcoin use. The price of bitcoins will also be directly influenced by how governments regulate this currency. The government of China is coming down hard on bitcoin exchange and has done everything possible to interfere with it. Bitcoin payment processors were then shut down and bitcoins lost much of their value in China.
How Volatile Is Bitcoin Use?
One of the reasons that some are arguing the potential of bitcoins to become a worldwide currency is because of their perceived unpredictability and lack of stability. Since bitcoins were first conceived their value has both risen and dropped dramatically at times. This prevents some users from wanting to purchase bitcoins, as you never know when they will go up or down in value. In a matter of days or even hours the value of a bitcoin can drop quickly. Though this is a concern bitcoins have still come a long way over the last several years.
When bitcoins first made their debut in 2009 the average bitcoin was worth $6 USD.
Since then the price has increased quite a bit and continues to rise every year despite governments throughout the world doing their best to regulate it.
Though there are inevitable bumps in the road when it comes to bitcoin use online bettors who have a large amount of bitcoins at their disposal should think about the risks of using them. Anyone who uses bitcoins is making a small investment in the currency as a whole while they are earning, spending and transferring them.
The unique aspect of bitcoins is that they are the most cost effective currency out there and they help consumers remain anonymous. No other currency can be transferred between individuals all over the world easier than bitcoins can. Traditional banking systems are archaic in comparison to bitcoins.
What is the most effective way to purchase bitcoins and store them for later use?
There are several different ways that bitcoins can be purchased and stored. Money transfer services support bitcoin transactions as do paying in person using cash.
However the most commonly used method of obtaining and storing bitcoins is to get a bitcoin wallet online. While there are hundreds to choose from, most U.S. residents use Coinbase.com, which is the number one marketplace in the country to obtain bitcoins. This currency can be purchased immediately and only requires you to pay a small fee general no more than 1% of the value of the bitcoins you are purchasing.
Having a bitcoin wallet is the best way to buy, sell and use bitcoins online. Bitcoin wallets are comprised of collections of private online addresses and keys that allow you to use your bitcoins anonymously.
Can Bitcoin sports books be trusted?
Whether a bitcoin sports book can be trusted or not depends on the sportsbook itself as some are more trustworthy than others. The bitcoin sports books that are the most heavily regulated are the best ones to trust. Less regulated sports book sites might be unscrupulous when it comes to taking bettors money. Some of the bitcoin sports books that are regulated the most and are therefore the most trustworthy include sites such like Pinnacle Sports, Ladbrokes or William Hill. These U.K. sports books are just as trustworthy as the most of the ones based in the U.S.
The best way to determine the most trustworthy bitcoin sports book is to do online research. A basic Google search will likely bring up complaints about certain sports book sites that you will then know to avoid. As bitcoins are gaining in popularity there are several online resources such as the Bitcoin Talk Forum where you can find out with sports books are the most trustworthy. Many bitcoin sportsbook owners post on this forum so it is easy to figure out which one is your best choice.
Can Bitcoins be hacked?
Hackers love when people use bitcoins because they are so vulnerable due to being a digital currency. The ironic part is that while many people prefer bitcoins because the government can’t interfere with them they are risky to use for that exact reason. At this point if bitcoins are hacked into there is no law preventing the hackers from doing so.
Most bitcoin users will not have a problem with getting hacked. Despite this, it is still recommended that you use bitcoins carefully and safely. Since anything stored online has the potential to be hacked into the best way to use bitcoins safely is to use a different bitcoin address for each individual transaction you make with them. When bitcoins are stored using private keys and passwords and web addresses are not stored on your computer, the entire bitcoin using experience will be a safer one for you.