Source: James Geibler via Twitter
The popularity of bitcoin and cryptocurrencies have opened up a new world of payments online, which has even spread into sports betting markets. New online betting companies are readily available, offering a wide variety of odds on almost every sporting event across the globe.
The new companies still have a long way to go before challenging the traditional payment forms of sports betting, who are firmly entrenched at the top of the market. Both have their benefits and their disadvantages, and we’ll now break down the reasons why the traditional forms of sports betting companies will continue to enjoy a stranglehold at the top of the market for a while yet.
Although the price of traditional currency can vary from day-to-day, month-to-month, and year-to-year, the movement in their value is minute compared to cryptocurrencies. For example, the British pound dropped significantly against the US dollar and the euro after the Brexit vote in 2016.
The value plummeted as low as 10% against the dollar and 7% against the euro. However, over time, the markets were able to stabilize; since then, there has been no notable difference in day-to-day life.
Source: Michael39352078 via Twitter
On the other hand, Bitcoin enjoyed a boom over the last five years, sending its share price soaring. In 2018, it suffered a dramatic decline. In 2017, 1 BTC was worth 19,772.59 CAD, compared to the end of last year when the same amount of bitcoin could be purchased for only $5,255.21 CAD. This volatility can be troublesome for online bookmakers pricing their odds and also for customers seeking to find the best exchange rates.
A huge win on a bitcoin sports betting service could be nullified by a poor rate of exchange when attempting to seek a transfer for traditional currency. Even the simple rewards structure highlights the issue; for example, when using Oddschecker to bet on odds from SkyBet or another service, bettors can receive a £5 free bet, compared to the 0.001906 BTC that would be gained in the cryptocurrency.
Traditional betting companies do enjoy excellent security, although as proven by the number of high-profile institutions that have endured lapses – no business is 100% safe from data loss. When the data include credit, debit, or even personal information, it can be dangerous for customers.
Although occurrences of data loss are rare, the concept of bitcoin and cryptocurrency provides a firmer form of security given that only the transaction code is maintained when a bet is made, keeping personal information out of harm’s way. It could be the draw that helps swing customers into their path in the future.