Successful poker players aren’t afraid to take calculated risks to enjoy greater rewards, which is why they’re more than happy to use Bitcoin. Consequently, many amateur and pro players have enjoyed the recent highs of the cryptocurrency, which has reportedly boosted their financial security. Keep reading to learn why poker players are increasingly using Bitcoin.
The Risk-Reward Ratio
Similar to poker, trading in Bitcoin depends on the law of averages, and each trade should have a predefined set-up. For example, if a trader opts to long Bitcoin at $5,000 and sets a target of $5,500, it will provide a 10% return if the trade plays out. If, however, the market declined, it would be a smart move for a trader to set a stop-loss cap at 2%. By doing so, the risk-reward ratio would be 1:5, which means a trader could still earn a profit over a long period. This is somewhat similar to poker. For instance, placing a big bet on the flop as a 65% favorite will lead to them becoming a profitable player in time. All a player must do is stack the odds in their favor.
An Ability to Control Emotions
It is common for some amateur players to become tilted when playing poker cash games, such as Omaha hi-lo or Texas Holdem. This means they will allow their anger, upset, or frustration to impair their decision-making skills.
While many people are afraid to use Bitcoins, some poker players are more than happy to embrace the volatility of the popular cryptocurrency, as they are happy to take calculated risks. Similar to poker, it is crucial to adopt a strategy and not to steer away from it, which means never becoming titled.
Understanding the Variance
Knowledgeable poker players tend to have a good understanding of variance, which cryptocurrency most certainly has, too. Similar to the likes of Texas Holdem and Omaha hi-lo, it is vital to understand and consider the short-term and long-term opportunities of Bitcoin.
For example, in both live and online poker, the variance is a measure of the uncertainty. For instance, high variance means there will be a considerable amount of uncertainty, while a play with an almost certain outcome will have a low variance.
As the value of Bitcoin has experienced price fluctuations throughout its history, many people might be scared to use the form of cryptocurrency, as they might view it as a financial risk. However, it’s possible to make an informed choice by reviewing Bitcoin’s volatility index to understand its variance. If timed well, just like poker, a trader could enjoy a high return on their investment.
As poker players are familiar with variance, they are trained to look for it, which is why they are qualified to use cryptocurrencies. What’s more, the card game has taught players to remain patient, which is why they are more than happy to invest early and wait to receive the best financial outcome.
For instance, Bitcoin often experiences an increase in its pricing, such as a massive spike in November 2013 and another one in December 2017. Players who held onto their Bitcoin winnings, or other cryptocurrencies, during this period, would ultimately have enjoyed a large return on their bankroll.
Another significant factor driving the use of Bitcoin in online poker is the fact that many websites are now accepting Bitcoin as a payment option, and they tend to have either small or zero transaction fees. What’s more, they often provide faster withdrawal times in comparison to other payment options, such as debit cards. This, of course, appeals to those playing low or high-stakes games.
Grow Finances at a Faster Rate
Most people will play poker to have some fun and build a substantial bankroll. It’s for this reason why some players will turn to Bitcoin, as they could potentially grow their finances at a faster rate. While most successful players will not state how much money they have generated from the cryptocurrency, many pros such as Ryan Riess and Fernando “JNandez87” Habegger have said they have enjoyed financial success with the cryptocurrency. Dietrich Fast has also stated he has 750 Bitcoins, which are worth approximately $5.5 million.
Doug Polk, a former professional poker player, has also been rather vocal regarding his Bitcoin success, as he stated he bought the cryptocurrency many years ago, which turned out to be a superb financial investment. He also helps other budding players to replicate his success with his YouTube channel, Doug Polk Crypto, which has 175,000 subscribers serves as proof that many people want to replicate the financial success of their favorite poker stars.
Greater Financial Security
For those unfamiliar with how Bitcoin works, it is operated separately from all financial institutions. Bitcoin will be stored in a digital wallet, which can be protected with a private key and a strong password. If a player uses a long-string password that’s impossible to crack, people might view their finances as safer than if they stored their money in a bank account, which could potentially be subject to identity theft and fraud. For this reason, this could be viewed as an appealing option for amateur and professional poker players, who may have spent years mastering the game and building a large bankroll.
Bitcoin has become one of the most popular digital currencies, as it offers anonymity, financial flexibility, and acceptable risk to reward ratio. While most members of the public would be cautious about using the cryptocurrency, poker players aren’t afraid to take the risk to build their bankroll at a much faster rate potentially.