I have a Bitcoin casino question.

I asked this question today in another thread, but the thread was deleted because the OP was spamming a Bitcoin casino.

If I deposited a Bitcoin worth $500.00 dollars today, I assume I get $500.00 dollars credited to my account so I could play the games. I play for a week on this deposit and finally decide to cash out $10,000.00 dollars I won. But the day I cash out Bitcoins during the past week got hammered and are now only worth $50.00 each. Would it be correct to assume I would be paid $10,000.00 worth of Bitcoins at the $50.00 dollar value?

Now most casinos have cash out pending times of 24 up to 72 hours, and could take a month before they actually send me my funds. Do I get the value of the Bitcoin the moment I hit cash out, or the value when it’s approved, or the value when they finally decide to send the money?

Maybe someone could explain to me how this actually works.

Sorry to delete your question, but I generally delete new threads if they are predicated on an initial spam post.

I've never played in a bitcoin casino, so don't speak with authority, but I would imagine you'll get the conversion rate at the time they get around to processing the withdrawal.

Do bitcoin casinos really convert the coins to dollars when you buy in? Wouldn't that stick them with the currency risk? I'd expect to bet in fractional bitcoins, and for the player to be on the hook for the bitcoin to dollar exchange rate at all times.

I've never played in one, but logically I would say it depends on how the bets are taken.

If you are buying in with Bitcoin but betting in a currency, say USD then you are going to win x and when you cash out you should have to change the dollars to Bitcoin.

If you are betting in Bitcoin you should just have to cash out your Bitcoin as you may or may not even want to change them back to USD.

Again not sure. I would recommend find one that lets you bet in Bitcoin so you have one less risk, ie the time factor of cash-out.

Quote: rdw4potus

Do bitcoin casinos really convert the coins to dollars when you buy in? Wouldn't that stick them with the currency risk? I'd expect to bet in fractional bitcoins, and for the player to be on the hook for the bitcoin to dollar exchange rate at all times.

I'm almost positive you are correct, but I have never played.

The whole attraction of Bitcoin is to NOT use fiat currency. So I would expect you buy in with bitcoins, wager with bitcoins and factions of bitcoins, and cash out with bitcoins. And then use a site like Mt. Gox (except not shut down) to change that into $$$ when necessary.

Quote: AcesAndEights

I'm almost positive you are correct, but I have never played.

The whole attraction of Bitcoin is to NOT use fiat currency. So I would expect you buy in with bitcoins, wager with bitcoins and factions of bitcoins, and cash out with bitcoins. And then use a site like Mt. Gox (except not shut down) to change that into $$$ when necessary.

On a good note "Bitcoins" is a legal site unlike Liberty reserve who just got charge with 6 billion dollars money laundering and 75 yrs in jail. You can trust Bitcoins and bitcoin casinos.

Quote: CrapsGenious

You can trust Bitcoins and bitcoin casinos.

You heard it here first, folks!

I've looked into this before and the standard procedure is that wagers are made in Bitcoins, or fractions of one. If you spend 500$ to buy 1BC, deposit it, turn it into 20BC and cash out, you now have 20BC. It's your responsibility to convert it back into your local currency-- probably over the same channels that you bought your first coin in.

That the market value of BC has changed is irrelevant to what you cash out with.

Quote: Venthus

I've looked into this before and the standard procedure is that wagers are made in Bitcoins, or fractions of one. If you spend 500$ to buy 1BC, deposit it, turn it into 20BC and cash out, you now have 20BC. It's your responsibility to convert it back into your local currency-- probably over the same channels that you bought your first coin in.

That the market value of BC has changed is irrelevant to what you cash out with.

Is there a standard rule for the breakdown of lets say a single $500.00 value Bitcoin deposited? Do I get 500 fraction coins worth $1.00 dollar each or1,000 fraction Bitcoins worth .50 cents each and so on? If I want to play $5.00 a hand then want to play $25.00 a hand can I just click on the game like we do for dollars, or do I have to do the math and just pile on or reduce my fraction Bitcoins per bet that would obviously be raising or lowering my wager?

If I deposit one $500.00 dollar valued Bitcoin lets say today and play with that for a week; regardless what happens to the market value of Bitcoins during that week my deposited value will always remain the same? Even if this $500.00 dollar coin I deposited lasts a month and Bitcoins go to $2,000.00 value by the time I cash out? Does this apply to all the different currencies the same way?

So, I deposit today 1 coin and it's worth $500.00 dollars, you deposit 1 coin 3 hours after me and it's value is now only worth $450.00 dollars; who or what determines the value of the coins during deposits?

Deposit one $500.00 coin today and after a week cash out $1,000.00 value for a $500.00 dollar profit, but the coin devaluation during this time dropped to only a $250.00 value. Factually I won nothing? Is this how it works?

Quote: 4ofaKind

Is there a standard rule for the breakdown of lets say a single $500.00 value Bitcoin deposited?

I don't think it's standardized, but as an example, the Seals with Clubs poker room converts 1 bitcoin to 1000 chips. A different site uses a 1 to 10,000 rate. For a casino, you would probably receive "credits" rather than "chips."

Quote:

Deposit one $500.00 coin today and after a week cash out $1,000.00 value for a $500.00 dollar profit, but the coin devaluation during this time dropped to only a $250.00 value. Factually I won nothing? Is this how it works?

Yes, that seems correct. But of course you're giving an extreme example. Currency values fluctuate, and bitcoin has been more volatile than most.

Quote: AcesAndEights

The whole attraction of Bitcoin is to NOT use fiat currency. So I would expect you buy in with bitcoins, wager with bitcoins and factions of bitcoins, and cash out with bitcoins. And then use a site like Mt. Gox (except not shut down) to change that into $$$ when necessary.

+1

Quote: 4ofaKind

Is there a standard rule for the breakdown of lets say a single $500.00 value Bitcoin deposited? Do I get 500 fraction coins worth $1.00 dollar each or1,000 fraction Bitcoins worth .50 cents each and so on? If I want to play $5.00 a hand then want to play $25.00 a hand can I just click on the game like we do for dollars, or do I have to do the math and just pile on or reduce my fraction Bitcoins per bet that would obviously be raising or lowering my wager?

If I deposit one $500.00 dollar valued Bitcoin lets say today and play with that for a week; regardless what happens to the market value of Bitcoins during that week my deposited value will always remain the same? Even if this $500.00 dollar coin I deposited lasts a month and Bitcoins go to $2,000.00 value by the time I cash out? Does this apply to all the different currencies the same way?

So, I deposit today 1 coin and it's worth $500.00 dollars, you deposit 1 coin 3 hours after me and it's value is now only worth $450.00 dollars; who or what determines the value of the coins during deposits?

Deposit one $500.00 coin today and after a week cash out $1,000.00 value for a $500.00 dollar profit, but the coin devaluation during this time dropped to only a $250.00 value. Factually I won nothing? Is this how it works?

Your conclusion is right, but you're thinking about it all wrong.

Once you are within the border of the BitCoin casino, there are no dollars or cents. You deposit 1 Bitcoin, and you have 1 Bitcoin. You wager fractions of bitcoins, so let's say you want to wager about 5 bucks, well then if BTC was traded at $500 that day, you would wager .01 BTC, not $5 based on some exchange rate at that time.

Quote: 4ofaKind

Is there a standard rule for the breakdown of lets say a single $500.00 value Bitcoin deposited? Do I get 500 fraction coins worth $1.00 dollar each or1,000 fraction Bitcoins worth .50 cents each and so on? If I want to play $5.00 a hand then want to play $25.00 a hand can I just click on the game like we do for dollars, or do I have to do the math and just pile on or reduce my fraction Bitcoins per bet that would obviously be raising or lowering my wager?

If I deposit one $500.00 dollar valued Bitcoin lets say today and play with that for a week; regardless what happens to the market value of Bitcoins during that week my deposited value will always remain the same? Even if this $500.00 dollar coin I deposited lasts a month and Bitcoins go to $2,000.00 value by the time I cash out? Does this apply to all the different currencies the same way?

So, I deposit today 1 coin and it's worth $500.00 dollars, you deposit 1 coin 3 hours after me and it's value is now only worth $450.00 dollars; who or what determines the value of the coins during deposits?

Deposit one $500.00 coin today and after a week cash out $1,000.00 value for a $500.00 dollar profit, but the coin devaluation during this time dropped to only a $250.00 value. Factually I won nothing? Is this how it works?

The bitcoin casino couldn't care less what the USD value of your bitcoin is. Just like casinos in Canada don't care how many USD it took to get the CAD you're wagering when you visit Fallsview or Windsor.

I do think there's a standard for how divisible bitcoins are. I want to say they're exchangeable to the 1/1000th of a coin, so I suspect that would be the absolute lowest possible bet (maybe for the inside on craps or roulette).

Quote: rdw4potus

The bitcoin casino couldn't care less what the USD value of your bitcoin is. Just like casinos in Canada don't care how many USD it took to get the CAD you're wagering when you visit Fallsview or Windsor.

Got it ... thanks.

Unless I miscounted, Bitcoins are officially divided down to the ten-millionth point, referred to a Satoshi.

The only casinos that I've seen that use an additional abstraction layer ("chips") are poker rooms; games against the house are BC-in, BC-out.

Think of it as, say, going to the EU to gamble. You take 500$, get 360€. You spend a week playing and cash out with 3600€, or about 5000$, because the US/EU economies are stable, right? Well, too bad. WWIII just broke out. All of a sudden, the demand for US dollars skyrockets. Due to the exchange rate shifting, your 3600€ can only buy 4000$.

You still have 3600€, but if you're looking to convert to $, you're out of luck and recording a gain smaller than you anticipated.

Same idea with buying into BC, right now.

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Nobody determines the value of a BC when you deposit it into a casino.

The value of a BC is determined when you buy it and when you sell it, as determined by its market rate, which is a whooole new discussion on the economy. (Or you can mine it yourself. Different story, too.)

Like my above example, 1€ is always worth 1€, definitionally. However, if you're from the US, € is effectively worthless until you turn it into $.

Alternatively, think of it as a stock market+casino, where you're gambling with fractions of AAPL shares.

A bitcoin casino is still subject to exchange rate risks, even if it takes (and settles) all wagers in bitcoins: it's operational income are in bitcoins and costs are in most probably in fiat money.

But the major advantage of a bitcoin casino is: massively reduced transactional costs. Shifting around bitcoin costs nearly nothing compared to other money processors.