Being part of the world of cryptocurrency involves embarking on a learning curve that is steeper than a lot of people realize. It’s not like trading Forex, where the rules of exchange are established and heavily regulated. It’s not really like any other asset that is widely traded, in fact, so a lot of crypto holders and traders are still learning as they go. As recent developments have shown, individuals and high-profile organizations can make significant missteps that fundamentally affect the entire asset class. And for those of us who have an interest in digital assets, it focuses the mind on the specific uses of crypto and how we treat it.
One of the most prominent uses of crypto coins is proving to be its popularity in the gambling world. In this feature, we are going to look at whether this is a smart way to use cryptocurrencies and how crypto bettors may be affected by the next moves in the crypto world.
Why crypto betting sites are performing at a high level
Although we’d all have to agree that 2022 has been a hairy year for crypto in general, you’d hardly know it from looking at the leading Bitcoin and altcoin casino sites. Among the most prominent of these sites, Cloudbet has made several interesting moves this year, launching their Marketplace program to reward the loyalty of crypto bettors. People who play the casino games on the site, and use it to bet on ongoing markets such as the NFL season and the soccer World Cup, are able to win points and climb a ladder of rewards within the casino (and sportsbook), which can be something as simple as free spins and bets on the site, or can be saved to redeem for rare Rolex watches and Maldives vacations.
Whatever the present state of crypto exchanges, the presence of initiatives like the Cloudbet Marketplace indicate that betting in the crypto world is still in a very solid state.
How could regulation affect the crypto betting sector?
The spectre of regulation has existed in the crypto world for a while, and the fact that it has remained a spectre has had twin effects. On one hand, it has ensured that people see it as some far-off thing that crypto holders don’t need to worry about. On the other, the fact that it could happen means it needs to be factored into considerations. When thinking about crypto betting, the potential for regulation – which seems to have moved back up the agenda in the aftermath of the FTX debacle – has more than one potential outcome. First of all, it is possible that proceeds from crypto itself will be taxed more proactively.
Secondly, proceeds from crypto betting – which can already be taxed as a capital gain – may now be more persistently targeted. This may be all the more reason to look at benefits in kind such as rewards from the Cloudbet Marketplace. It will be harder to directly tax gifts from loyalty points than direct profits, so more outside-the-box thinking is not a bad idea for crypto bettors as we look ahead to 2023.
