The Bitcoin predictions market is a growing segment of Bitcoin gambling that’s enjoyed by savvy gamblers. Most Bitcoin investors have an opinion on the future price of BTC, and the Bitcoin prediction market gives smart gamblers a way to profit from their price predictions.
Today, you will learn about Bitcoin prediction markets and how you can use them to win Bitcoins. The cryptocurrency market is constantly in a state of flux, and you can use the Bitcoin price prediction market to make some money on those fluctuations.
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What Are Prediction Markets?
Online prediction markets offer a medium that allows users to make profits by correctly guessing an event’s outcome. These events—usually called futures contracts—are based on facts that can be verified by simply checking the result in real-time.
Prediction markets, however, do not merely function as a means for gambling entertainment. It is also utilized to generate public perception of specific subjects, topics, or events. For example, there are always huge markets surrounding political elections and major events such as the NFL Super Bowl. Prediction markets are widely enjoyed by online bettors, especially serious ones. After all, guessing what will likely happen next is more fun when money is involved.
Bitcoin Prediction Markets
With Bitcoin prediction markets, everything is the same except that you predict the potential outcome using the digital currency. Generally, a person is betting on the future price of Bitcoin. Also, bettors can predict the future of various altcoins like Ethereum and Litecoin. You could also bet on more exotic predictions, such as the true identity of Satoshi Nakamoto.
However, many Bitcoin prediction markets will allow you to be on other global events using Bitcoin instead of fiat currency. Smart gamblers can use their insight and knowledge of upcoming events to make a safer gamble than playing Bitcoin blackjack or other online casino games.
Differences Between Prediction Markets and Sports Betting
Some people view Bitcoin prediction markets the same as Bitcoin sports betting. In fact, some sports betting sites pass themselves off as prediction markets. There are a couple of differences. First, when you are betting in a predictions market, you are betting on Yes and No outcomes only. For example, do you think the price of Bitcoin will be over $15,000 at the end of 2021? There are no other bets you can make on this option.
For sports betting, you can often make multiple bets on a game or sporting event. This ranges from who will win to the points spread and more. If the bets are dependent on factors other than who won an event, this is more sports betting than predictions.
Next, sports betting odds can wildly fluctuate where odds for predictions markets stay relatively flat. The only difference is are weight multipliers. Weight multipliers add weight to your bets based on how much time is left in the bet.
Advantages of Bitcoin Prediction Markets
If you are still on the fence as to whether to take a chance with Bitcoin prediction markets, here are a few advantages you should consider:
More Skill-Based – Bitcoin predictions are more of a skill-based bet than online casino games. That’s because you can make predictions using what you know about events that interest you. You can use technical analysis data about Bitcoin to analyze the price of Bitcoin. Do you know that Bitcoin halving is about to occur? The prices usually go up post halving, and you can profit on predictions. Or, if you know are a political expert, you can use that knowledge to make predictions on future elections.
Less Volatile – Betting on BTC’s price may be less volatile than holding Bitcoin or altcoin from a Bitcoin exchange. The digital asset market is always in a state of flux. Betting on price action will commit less of your bankroll and will lose you less when you lose. On a Bitcoin bull run, you can make some variance free income.
Lower House Edge – If you play online casino games with Bitcoin, you are familiar with the house edge. On average, the house edge on Bitcoin prediction markets is somewhere between 1% to 3%. This is lower than most casino games and gives you great odds of turning a profit.
Accessible to All – One of the best things about Bitcoin predictions is that you don’t need a hedge fund manager or even a broker to participate. Just deposit Bitcoin or another cryptocurrency onto your site and begin making predictions. Also, you can make bets from anywhere in the world. This makes it perfect for everyone, from low rolling gamblers to institutional investors.
Disadvantages of Bitcoin Prediction Markets
Now that you know the advantages, here are some disadvantages to Bitcoin predictions:
Long Waits – Often, you will have to wait quite a while to see a payout when you are making a prediction. This can be anywhere from a week to months. For example, if you bet on the winner of the next Super Bowl, you will have to wait until January or even February to see a payout.
Market Fluctuations – If you make bets on the price of Bitcoin, you are subject to market fluctuations. It’s not uncommon to see Bitcoin drop below its support levels or see drops in price after major news. Remember back in December 2017 when Bitcoin hit an all time high of nearly $20k? What happened? It plummeted to $5,000. As such, wild fluctuations can kill specific bets.
Limited Betting Options – Some sites offer a limited number of options for Bitcoin predictions. The best sites offer dozens of bets over multiple categories ranging from the price of Bitcoin to winners of sporting events, elections, and more.
Fees – Many Bitcoin prediction markets will charge fees when you win a bet. While the fees are generally low, they can add up over time. Some will call them a commission. Regardless, it is still a fee for using their service.
The Future of Bitcoin Prediction Markets
Bitcoin predictions is still a growing segment of Bitcoin gambling. Due to similarities to sports betting, we predict that this form of gambling will see tremendous growth in the next few years. Bitcoin appears to be on another potential bull run, and this could also influence gamblers and investors to wager on the future of Bitcoin.
If you plan to wager on Bitcoin predictions, we recommend that you start small and wager on areas you’re knowledgeable in. This is the same advice we’d give to sports bettors. Don’t always fall for the hype of a particular prediction and use technical analysis along with other tools to make a smarter bet.
For those that like to gamble on futures or long-term outcomes, then look into Bitcoin prediction markets. This will give you a skill-based way to gamble on Bitcoin with greater potential profits for winning bets.