Bitcoin's Price Fall Doesn't Affect Poker Sites Using Digital Currency As Much As You Might Think →

More than 140 online betting sites, including at least 10 platforms offering web poker, use the digital currency bitcoin—and it has been estimated that more than half of global bitcoin transactions are wagers on gambling sites, creating a market worth billions.

So, when the price of bitcoin drops, it would make sense to think that poker sites using it are hurt. However, that not’s really the case, according to one bitcoin expert.

Though it quickly became outdated thanks to bitcoin rebounding (on Friday morning it was back up to trading at roughly $210), a quote from a The Wall Street Journal article last week highlighted the volatility of bitcoin’s price in recent months.

“The virtual currency, which trades mostly in unregulated overseas markets, has fallen 44 percent since the start of the year and 85 percent from the record high of $1,165 it hit in early December 2013. In total, almost $11.3 billion in value has been lost since that peak.”

The rise and fall (and subsequent fluctuations) in price of the digital currency doesn’t have bitcoin experts worried, however. Poker pro Bryan Micon, who is the affiliate manager for the leading bitcoin-only online poker site Seals with Clubs (one of many online gaming sites to utilize the technology), is one of those who isn’t concerned, especially by pessimistic headlines.

“I would characterize the recent downward (then slightly upward) bitcoin price movement the same way I always characterize them: We are once again observing a small, unregulated market which is completely driven by human supply-demand,” Micon said.

“If more bitcoin holders want to sell than fiat holders want to buy, the price will go down. When the opposite is true the price will go up,” he added.

A recent article from Wired, titled “The Price of Bitcoin Doesn’t Matter Right Now”, made an interesting comparison between bitcoin and the early stages of the Internet itself. It took years before the internet matured into what it is today. Bitcoin might take awhile to gain that permanence and widespread economic confidence, so a falling price definitely doesn’t mean doom and gloom.

Las Vegas, the gambling capital of the world, saw its first bitcoin ATM just last year.

Micon added that fiat currency is obviously still what people value bitcoin against, but that those who have faith in the digital currency aren’t dismayed by downward price movements.

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“I feel the world will continue to embrace bitcoin over time, and as always, I’m going to continue to hold,” said Micon, who has been involved with bitcoin since 2011.

Micon thinks it’s pretty crazy these days to witness “bitcoin derivatives possibly moving the market with such force” given how young the digital currency really is. It was first conceived of in 2008 by developer Satoshi Nakamoto, making it only about six years old.

As for how the price of bitcoin affects online gaming sites that use it, Micon said:

“It’s been my observation that bitcoin poker players tend to play less when the price goes down. I think from a bitcoin enthusiast standpoint there is less to be excited about as the price slides. The flip side of that coin is that when the price spikes upward humans seem to be more excited about bitcoin in general, and play seems to pick up.”

According to tracking from PokerScout, traffic on Seals With Clubs has remained pretty consistent over the past six months. Same with Switch Poker, another bitcoin poker site.

Breakout Gaming is Making Big Promises in Online Poker →

Breakout Gaming has succeeded in generating substantial attention in the online poker and Bitcoin worlds thanks to mainstream coverage and an impressive roster of high-profile poker pros publicly associated with the project.

“We are going to shake up the gaming community with the world’s first cryptocurrency that has a dedicated ecosystem for its coins”

New crypto-currency online gambling hopeful Breakout Gaming has succeeded in generating substantial attention in the online poker and Bitcoin worlds thanks to mainstream coverage and an impressive roster of high-profile poker pros publicly associated with the project.

And Breakout is making some big promises.

“It’s not just an evolution, it’s a revolution,” one official media circular confidentially proclaims.

It plans to spread dozens of different gambling games on launch, according including launching an independent online poker network (Texas Hold’em and Open Face Chinese games are mentioned specifically). There will also be various casino-style games and a fantasy sports betting platform.

The operator is launching a new cryptocurrency—Breakout Coin, or “BRO”—and players will be able to instantly exchange Bitcoin for “BRO” coin to gamble.

MAKING A SPLASH

Breakout hit the front page of tech news site Venture Beat, which published the press release last week. This grabbed the attention of the Bitcoin bloggers and the online poker community, mostly thanks to an impressive roster of poker professionals who have put their name to the product, including Huck Seed, Jennifer Harman, Ted Forrest, David Benyamine and Todd Brunson.

“We are going to shake up the gaming community with the world’s first cryptocurrency that has a dedicated ecosystem for its coins,” Johnny Chan, another “core partner” of Breakout Coin, is quoted as saying.

QUESTIONS ABOUND

Big promises deserve extra scrutiny, and there are big questions surrounding its launch. It is not exactly clear in which markets the Nevada-based company plans to operate, but given the location of its offices and the focus on fantasy sports, a US launch seems likely.

“All of Breakout Gaming channels and its games will be properly licensed and deployed only in 'legal-to-play’ markets,” the press release states. How the company plans to overcome the legal hurdles of operating online gambling in regulated markets is unclear.

“Breakout Gaming will be positioned to address … regulators’ demands to meet both KYC [Know Your Customer] and AML [Anti-Money Laundering] rules,” David Gzesh, a well-known igaming and cryptocurrency attorney is quoted as saying in last week’s press release. Breakout is a member of the Fantasy Sports Trade Association, but its other credentials are not known.

There has been no set date for launch, although ambassador Ted Forrest stated via twitter that a launch is coming in October—and confidently predicted the success of the new platform:

NOT SO FAST

There has already been one setback. A planned official announcement this week has been delayed “due to technical issues regarding the development of the initial coin purchase process,” a Breakout spokesperson announced on the Bitcoin Talk forums on Monday. “Once technicals have been resolved, we will make the announcement with all the details and close this thread.”

Developing an entirely new igaming platform along with a new crypto-currency is certainly no small task. Cynics will be quick to remember InfinitiPoker which had a similar early buzz—big plans, big promises, and big named pros—but after technical problems stretching years, the buzz quickly fizzed. When the site finally launched, it flopped.

The brand ambassadors for Breakout are a step above those signed by InfinitiPoker, but getting the product to market and compliance with regulations that are the most important issues that need to be addressed. At this point, the company is building their credibility on the backs of its sponsored pros, but that only buys them time. At some point, Breakout Gaming will have to actually breakout and deliver a functional product that conforms to the laws of the jurisdictions in which it operates.

Founder Of Bitcoin-Based Silk Road Found Guilty →

Ross Ulbricht, the creator and owner of the former black market online portal Silk Road, was found guilty in federal court on Wednesday. The site was shut down in 2013.

The 30-year-old Texan was convicted on drug trafficking, money laundering and computer hacking charges for running the bitcoin-based online marketplace that facilitated more than $1 billion worth of transactions for illegal goods.

He will be sentenced in mid-May and faces up to life in prison. The minimum sentence for him is 30 years.

“This is not the end,” Ulbricht’s mother said loudly as he was led out of the courtroom Wednesday. “Ross is a hero!” shouted a supporter, WIRD Magazine reported.

“Ulbricht’s arrest and conviction—and our seizure of millions of dollars of Silk Road bitcoins—should send a clear message to anyone else attempting to operate an online criminal enterprise,” Manhattan U.S. Attorney Preet Bharara said in a statement. “The supposed anonymity of the dark Web is not a protective shield from arrest and prosecution.”

During Ulbrict’s era in the bitcoin world the digital currency also found a home with online gaming, including poker sites. Bitcoin poker sites are effected some by the fluctuation of the digital currency’s price. Many believe bitcoin should one day be widely regulated.