If someone wants to gamble with their bitcoins, tell them to sell it and then gamble with the cash. You cannot stop people who want to spend their bitcoins for gambling and tell it that they should've sold it instead. If the choice as they want to gamble is bitcoin then it should be made by them in bitcoin and they're comfortable using it. Although some may say that it shouldn't be bitcoin that they must use because there are other options for cryptocurrencies to be used for gambling. But that's it, the higher the price, the lesser bitcoin that can be used. Anyway the price of bitcoin has decreased a lot and one can choose to gamble with other altcoins that they prefer.
This is true. The volatility we've seen since this thread was originally posted is a prime example why Bitcoin should not really be used for gambling unless you happen to think it will go up from the current price. There are many reasons, like if you're buying Bitcoin purely for this purpose your "money" value has dropped in half since February. Alternatively you would have been better off cashing out if you had funded a casino account in the huge run up to $65k, it probably would have given you a much better return on your assets - if not the same level of fun. Fiat money which is relatively stable is a much better way to gamble because you don't have to make a layer of secondary valuation calculations due to daily swings in price.