Re: To convert or not to convert ❓ This is the Esportsbook’s question…

Quote from: legendster on July 02, 2019, 04:30:12 PM

Quote from: avikz on July 02, 2019, 03:07:26 PM

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What is your opinion on converting crypto deposits to FIAT?

Let me give you two scenarios and let me know how your casino would do in those situations.

Scenario 1:
Date: 1 July 2019
Deposited: 0.5 bitcoin at 10k EUR/btc exchange rate
Converted value at my bankroll: 5k EUR

Date: 3 July 2019
Winning from games: 500 EUR
Current bankroll value: 5500 EUR
Bitcoin market price: 12k EUR
Converted to btc while withdrawing: 0.4583 btc

So in this scenario, I will be getting less numbers of bitcoin even after winning 500 EUR from the games. How do you handle this??

Now Scenario 2:
Date: 1 July 2019
Deposited: 0.5 bitcoin at 10k EUR/btc exchange rate
Converted value at my bankroll: 5k EUR

Date: 3 July 2019
Loss from games: 500 EUR
Current bankroll value: 4500 EUR
Bitcoin market price: 8k EUR
Converted to btc while withdrawing: 0.5625 btc

In this scenario, I am making losses but getting more bitcoins while withdrawing.

Please let me know how do you propose to handle such situations? I think it is wise to implement crypto wallets instead of converting cryptos to fiat. You will be significantly exposed in exchange rate fluctuation risk.

Now I'm not sure but both these scenarios can be answered with 1 answer. What you deposit or withdraw is instantly pegged to USD value and not Bitcoins. They might have a third party implementation like shapeshift or changelly where they will insta convert deposits and withdrawals.

Not really mate! The concern is only with the fiat value pegging! Are you saying that once I deposit the bitcoins at 10k EUR exchange rate, the entire time it stays in the game will be valued at the same rate? Same thing will apply while withdrawing as well?? If yes, then have you considered the risk behind that?? People will start using this gambling website for hedging purpose then! It's unrealistic!

The most realistic way is to implement crypto wallet and consider crypto bets in crypto units only so that the exchange rate fluctuation doesn't come into play! That's the simplest and most realistic solution!