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With Bitcoin continuing with its rise, successful online punters' earnings are growing even bigger by asking for their winnings to be in cryptocurrencies while cashing out from their respective poker websites.
Winning Poker Network, which is quite famous for operating numerous sites including AmericasCardRoom.EU had to purchase millions of dollars worth of Bitcoin per day from their over-the-counter trading desk more frequently recently just to satisfy the demands their players are currently dishing out for them, according to their Chief Executive Phil Nagy.
Speaking to the media, Nagy, who is from Costa Rica, said: “Right now 90-95% of our payouts are people asking for Bitcoin because it’s going up. We constantly have to go out and buy Bitcoin -- lots. Lots. More than we’ve even had to before.”
Despite online poker being sanctioned as illegal in some states, Americans retain the most populations in the site's customers.
"Bitcoin is in so much demand, brokers are charging up to a 1.5% premium," he continued. "The business does more than 60% of its transaction volume in Bitcoin. That’s about $100 million a month."
Since its last major rise in December 2017, Bitcoin attained its biggest rise as it climbs $18,479 on Wednesday which is about a 60% rise in the past month. Considering its 1,400% rise in 2017, which later saw a 70% drop the following year, it could still count as a little jump while the figures claim otherwise.
A Crypto investor Aaron Brown highlighted another reason for cashing out in cryptocurrency, he said: "Digital-asset enthusiasts may also be hoping to avoid taxes by using the sites."
While there is also the fact that Bitcoin is a tough nut to crack should the U.S. authorities be hoping to track the movements of the cryptocurrency?
According to the Nagy, Winning Poker Network players have the rights to file their own winnings and losses, he said: “We don’t regulate that. About 60% of the business’s customers are from the U.S."
According to reports, Poker sites, who have FA Poker tournaments of their own, were one of the first few to take on the use of Bitcoin, which has helped them grow quite well in the past few years. Winning Poker Network, which began to accept Bitcoin back in 2014, set a Guinness World Record for the largest crypto jackpot in online poker back in July 2019.
While the Covid-19 pandemic has been a major cause of concern for several companies due to the major losses they succumbed to, it has actually been the opposite for online gambling. The Poker industry has seen 43% growth since April, according to The Business Research Co. The temporary shutdowns of land-based casinos and the non-movement lockdown restrictions have also contributed to the industry's rise.
Nagy continued: "Long-time customers can deposit dollars and make withdrawals in Bitcoin. Before the recent rally, about 60% of customers cashed out in Bitcoin, while now it’s over 90%.
"WPN, for its part, doesn’t hold on to Bitcoin, but converts it into fiat as soon as possible -- as Bitcoin is known for its wild price swings," Nagy said.
Considering how the cryptocurrency rises and falls in its usual ways, Nagy said: "Sometimes, it doesn’t have a choice, though."
“When Bitcoin drops or does something significant, inevitably, we have people send us $100,000 or $200,000 in Bitcoin because it’s the fastest way to liquidate it,” Nagy said. “And we are kind of stuck with it.”
Whether Bitcoin rises or crashes, one thing is certain, there will continue to be a rise in players asking for the cryptocurrency when they seek to cash out.
