Are books now at risk if bitcoin crashes?

**Buffalo Nickle** · 09-27-15, 09:54 AM

I doubt they hold enough to hurt them much since very few of their customers are using it. It could hurt them a little. On the other hand, if sportsbooks are using bitcoin, it has a growing demand which reduces the chance of it tanking. If people actually use bitcoin, it will not crash. Gambling can support bitcoin on its own. Any movement away from bitcoin is likely to be gradual and not that disruptive.

Coinbase and Circle will likely provide access to any alt currency that gains traction so probably not such a big deal for gamblers one way or another until the govt puts the crack down on it. Books will offer anything that becomes popular which will reduce their risk and exposure.

People holding bitcoin may be disappointed in its investment prospects if competition enters the market and people start using it. But they'll probably be the first to buy the other thing and dump bitcoin.

**combination lock** · 09-27-15, 02:14 PM

Good post buff

That outlook seems to make good sense

**King23** · 09-27-15, 04:28 PM

Originally posted by Buffalo Nickle

I doubt they hold enough to hurt them much since very few of their customers are using it. It could hurt them a little. On the other hand, if sportsbooks are using bitcoin, it has a growing demand which reduces the chance of it tanking. If people actually use bitcoin, it will not crash. Gambling can support bitcoin on its own. Any movement away from bitcoin is likely to be gradual and not that disruptive.

Coinbase and Circle will likely provide access to any alt currency that gains traction so probably not such a big deal for gamblers one way or another until the govt puts the crack down on it. Books will offer anything that becomes popular which will reduce their risk and exposure.

People holding bitcoin may be disappointed in its investment prospects if competition enters the market and people start using it. But they'll probably be the first to buy the other thing and dump bitcoin.

Yup i agree they do not have enough of it to worry about

**3runhomer** · 09-28-15, 02:07 AM

Well said Buffalo

**evo34** · 10-28-15, 08:10 AM

"Any movement away from bitcoin is likely to be gradual and not that disruptive."

I could not disagree more. If it really starts to crash (drops 50% in a week, say), people could very well panic and start to cut their positions. That could become a snowball effect as buyers step aside and spell the end for bitcoin. Any funds held in bitcoin should be money you are fully prepared to lose, IMO.

**Fischnasty** · 11-21-15, 01:12 PM

Originally posted by evo34

Any funds held in bitcoin should be money you are fully prepared to lose, IMO.

**Grivas_Digeni** · 11-22-15, 04:22 PM

Originally posted by evo34

"Any movement away from bitcoin is likely to be gradual and not that disruptive."

I could not disagree more. If it really starts to crash (drops 50% in a week, say), people could very well panic and start to cut their positions. That could become a snowball effect as buyers step aside and spell the end for bitcoin. Any funds held in bitcoin should be money you are fully prepared to lose, IMO.

All of my gambling funds is just that. A rush stack that's all-in every other day. I'm pretty sure it's like this, or similar, for 90% of people who are reading this. Nothing wrong with a little extra gambling on that exchange rate

**Theo_Goodman** · 12-01-15, 04:09 PM

The books, and the players can also hedge against sell-offs in price. For example if you were to buy 1 BTC then you could take 0.10 BTC and take a 10x Short position. If the price goes up then the bitcoin you bought has gone up in value but your short position has gone down and you have not lost anything. If the price goes down the bitcoin you bought went down in value but the short position went up in value. This is a simplified way to explain how to hedge your bitcoin. If you want to know more about bitcoin trading, hedging ect then just ask.

I asume that some of the books do this, or sell some of the bitcoin to fiat to avoid any big swings. However if the book is totaly denominated in BTC then there is not that much of a risk.