Phil Nagy is the CEO of Winning Poker Network, one of the largest Bitcoin gambling operations in the world. Nagy and his company are swimming in Bitcoin profits right now just like many bitcoin-based businesses, but they are also buying $100 million worth of Bitcoin every month. That’s because more and more players on the WPN are requesting payouts in Bitcoin.
How WPN Is Managing to Buy That Much Bitcoin
When you’re buying $100 million worth of Bitcoin in one month, it means you can’t just log on to the average cryptocurrency exchange and expect to find what you need. Businesses looking to buy Bitcoin in large volumes need to go to large providers using over-the-counter services that find large-volume sellers. Nagy estimates that the brokers WPN is currently using are charging a 1.5 percent premium on the price of Bitcoin for all the orders his organization is making.
For Nagy, that’s a small price to pay because the demand is so high and gamblers who have their demands met will keep coming back for more. It’s part of a longer-term strategy to keep serving customers in first-class fashion. Nagy also notes that WPN aims to turn Bitcoin into cash as fast as possible and that WPN does not hold on to Bitcoin for the sake of price appreciation. It’s all about putting the customers first.
Just How Many Poker Players Are Asking to Be Paid in Bitcoin?
You may not believe this but 90 to 95 percent of WPN’s customers are asking to be paid in Bitcoin. Sixty percent of those players are from the United States. Why is that important to note? Because most states in America still outlaw playing online poker for money. This means that players are looking to protect both their privacy and their wallets.
Both WPN and other Bitcoin gambling operators have the coronavirus pandemic to thank for that as online gambling in general has been on a huge uptrend ever since the virus forced gamblers to stay home and avoid bricks-and-mortar casinos.
With Bitcoin’s price rising dramatically over the past year and likely to continue to do so moving forward, gamblers making requests for Bitcoin are likely to come back with even more capital whenever they feel like sitting down at the poker table.
Larger Companies Are Buying Even More Bitcoin Than WPN
A Bitcoin investing firm called Pantera Capital is estimating that ever since PayPal committed to selling Bitcoin to its customers and merchants, more than 70 percent of new bitcoins being mined are being swallowed up by the company.
As more and more companies begin to offer Bitcoin as part of their service and product offerings, you can bet that your fiat money will no longer get you nearly as large a Bitcoin bankroll as you may have been able to acquire in the past.
What this all really means is that there’s no better time than right now to not only invest in Bitcoin but also practice sound bankroll management. Watching your Bitcoin value grow only to throw it all away on a cash game or a high-roller tournament isn’t going to do you any good.
As thrilling as it can be to make money playing poker, you’ve got to be smart about weighing the odds of Bitcoin’s price rising just like you would in calculating the number of outs you have while chasing a full house.
If there’s one thing that’s for certain, though, when it comes to the broader economy and empowering yourself through an investment in bitcoin, the house doesn’t have to have the edge anymore. That edge now goes to you because you have more control over building your own bankroll and you can choose to be your own banker.
Nagy and all other gambling CEOs that accept Bitcoin likely wouldn’t have it any other way – even if they are mildly inconvenienced with the task of having to purchase $100 million worth of Bitcoin every month just to pay you out.