Betting Talk

Online book resilience in case of BTC crash

paddyboy111paddyboy111 Senior Member
edited November 2018 in Sports Betting
Books that take BTC deposits would be wise to immediately sell the BTC into the currency that your account is denominated in. Otherwise they hold the risk of a drop in the crytpocurrency price when you withdrawal your money in BTC at the new exchange rate. I'm sure they do this, but in a very unregulated business, considering the transaction costs of I wonder what would happen if BTC dropped 90%, for example. As Warren Buffet said, it is only when the tide goes out that you find out who has been swimming naked. Is this something I should be worried about?

Comments

  • MikeRASMikeRAS Senior Handicapper
    edited November 2018
    I know nothing about how sportsbooks do business but being able to hold the currency in crypto format may be part of what helps them stay away from law enforcement's grasp. I'm sure North Korea and other rouge states that have economic restrictions probably operate in crypto as well. If your book has been dealing in crypto since the beginning of 2017 than they have still like quadrupled their investment on holdings. It just isn't 20x to the moon magic that it was for a bit and probably bought them some private jets and villas on the ocean. I am purely speculating but if bitcoin were to completely collapse money held in many sportsbooks would be in jeopardy. I base this off no facts and still personally hold money offshore as it is necessary to do business. I have major respect for the main A books operating but I have to believe they are taking some risk on the currency exchange with bitcoin as for the longest time it was a risk worth taking. Before bitcoin came along it had become almost impossible to deposit and take withdrawals from sportsbooks. Holding money in US dollars seems like you are in the system and at risk of having assets frozen depending on how things operate. Again, I know nothing, but if I wake up tomorrow and bitcoin is at nearly 0 it would be an interesting test on the offshores business practices. Lets hope we don't have to find that out.
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