Online Gambling Drives Bitcoin Growth - For Now

Investment in bitcoin as a form of virtual money has become popular among cyber age speculators because of its potential to transcend national currencies and provide global commerce participants with a single instrument of trade currency. But is bitcoin a good financial investment?

Bitcoin Sports Trade CEO Tyler Wilson certainly thinks so, which is why he created BitcoinSportsTrade. Wilson subscribes to the basic premise of user-generated value: unlike global currencies in national and international banks, Bitcoin is not controlled by any single entity. 

Free-market Wagering

Not by coincidence, casinos are the main entities utilizing the bitcoin trade, with gambling providing over half of the total use of the bitcoin economy. Wilson created Bitcoin Sports Trade to unify global sports wagering communities. Imitating other Bitcoin peer-to-peer exchange system platforms such as bitstamp, Wilson decided to let the user activity "set the market."

User-generated Betting Lines

Instead of offering set odds, Bitcoin Sports Trade's betting lines are determined by user activity, so that the supply and demand of betting preferences most equitably establishes the betting lines. In short, the house edge is removed completely.

Obstacles to Bitcoin Growth

The concept of user preferences setting market values is an extremely appealing component of the bitcoin online economy. However, among the remaining obstacles to a global bitcoin infrastructure is the gray area status that online gambling represents to the massive US market.

Casino-Centered Bitcoin Investment Outlook

By the same token, over 50% of bitcoin use is sustained by the multibillion dollar online gaming industry. In light of the fact that the online gambling industry continues to grow rapidly, bitcoin has the potential to be an attractive investment in that specific sector for now.

If the model can develop and be adapted with integrity across diverse exchange environments - and gains US acceptance, the potential for bitcoin growth could be limitless. For now, a wait-and-see attitude and modest direct investment in bitcoin wagering or wagering news sites would appear to be the most prudent approach.