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Are Bitcoin Gambling ICOs a Good Investment?

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Bitcoin Gambling ICOs

Gambling is one of the most lucrative industries in the world and it is, therefore, not surprising that gambling using the cryptocurrency bitcoin is also becoming increasingly popular. In the last few years, a wide range of online bitcoin casinos have opened their doors to enable users to gamble using bitcoin. Bitcoin casinos allow their users to deposit and withdraw money at a low cost whilst remaining anonymous, which is especially useful for gamblers who are located in countries where online gambling is frowned upon or heavily regulated.

“Today, over $1 million US dollars worth of bitcoin are being wagered every day across online bitcoin casinos.” – The Bitcoin Strip

As the popularity of bitcoin as a payment method for online gambling increases, so does the profitability of bitcoin casinos. That begs the question “are bitcoin casinos a good investment?”

Now, you may ask yourself “how can I invest in bitcoin casinos?” The answer is simple: bitcoin gambling Initial Coin Offerings (ICOs).

Initial Coin Offerings (ICOs)

An Initial Coin Offering (ICO) is an innovative way to raise funds for a new cryptocurrency project by distributing a percentage of the initial coin supply among early-stage investors. Most ICOs work in a similar manner as an Initial Public Offering (IPO) on the stock market. With an IPO, you as the investor, receive a percentage share of the company that you invest your money in once it floats on the stock exchange. In an ICO, you receive a share of the initial coin supply, which then gets publicly traded on cryptocurrency exchanges once it officially launches. And much like when investing in the shares of a company, the value of the new coin linked to the cryptocurrency project will increase as the project performs well and, therefore, gains in value.

ICO’s have become a popular investment class for return-hungry investors as ICOs can often double or triple in price within the first few days of trading. On the other hand, some new coins that are released through ICOs can turn out to become near worthless within a matter of days, weeks or months after their launch. And in a few unfortunate cases, some ICOs have turned out to be outright scams – hence, investing in ICOs is a considerably high risk/high return game that needs to be handled with caution.

“Aside from some of the major players, a large proportion of online bitcoin gambling sites operate under little or no regulation. Investing in a such a scheme requires a great deal of due diligence, but as we have seen with Bitcoin in general, the opportunity to generate a huge ROI is certainly out there.” – Andreas Russell, BigcoinGambling.com

Bitcoin Gambling ICOs

This brings us to a new subsector within the ICO space: bitcoin gambling ICOs. In the last few months, several bitcoin gambling ICOs have been announced, including vDice, BetBase, BetKing and Etheroll. Let’s look at each in more detail.

vDice

vDice is the world’s first fully decentralised gambling game built on the Ethereum blockchain. On November 15th, its ICO was launched and it runs until December 15th. vDice has been live since June 2016 and has cemented itself as a popular cryptocurrency gambling game.

The vDice token, which will be sold during the ICO, is called ‘vSlice’ and will distribute profits of the vDice game to token holders, according to vDice’s press release. You can trade these tokens on an exchange immediately or keep them to receive a share of the company’s profits. vDice is looking to issue 96,000,000 tokens during its ICO and has been developed by a range of industry experts.

BetBase

Another gambling ICO that has recently been launched is that of BetBase. According to its website, BetBase is a platform offering anyone a chance to start his or her own online bitcoin casino for no costs and without any coding required. BetBase provides an API, a shared bankroll, a provably fair mechanism, and more. Every bet placed against their servers is processed using their own bankroll so you the casino owner gets paid for each bet made, no matter if the customer wins or loses the bet. For every bet placed you get paid 50% the house edge of the bet. 

Its ICO started on November 27th, 2016 and will continue until December 18th, 2016. BetBase is looking to issue 100,000,000 shares, which will be split 60% to ICO investors, 10% for bounties and 30% to the owners. The money raised will be used to bolster BetBase’s bankroll and to further develop its platform. Despite a promising sounding ICO, when scrolling through their sales page and their bitcointalk.org ICO thread, there are (as is not uncommon with ICOs) some concerns about its legitimacy as there is no real information about the company owner, only a pseudonym used in a bitcoin forum. In my eyes, this omission is a red flag that needs to be closely monitored before making an investment. Especially given the already risky nature of ICOs.

Bet King

Another bitcoin gambling ICO that has recently been launched is the ICO of BetKing. BetKing is a bitcoin dice platform. Since the launch in April 2013, BetKing has grown into one of the most popular bitcoin dice games with over 397,000 bitcoin wagered and earnings of over 7200 bitcoin profit according to the BetKing website.

The BetKing ICO crowdsale began on December 1st 2016 and closes on January 1st, 2017.  The BetKing team plans to raise investment so they can develop more products including casino games such as blackjack, slots, and roulette. Also, the funds are set to go towards developing a sports betting platform and poker room as well as a host of other gambling related products and services. BetKing plans to create 100,000,000 tokens to represent 100% shares of BetKing, of which 30% will be distributed to investors at the end of the ICO while the remaining 70% will remain in the ownership of Betking. After the ICO is over, dividends will be paid as a share of the total profit generated by BetKing in bitcoin every 3 months. To buy shares during the ICO period you need to sign up or log in to BetKing and deposit the bitcoin you wish to invest, or use the existing balance you have on your BetKing account.

Etheroll

Etheroll is an Ethereum smart contract platform for playing a dice game using Ether with no deposits. Etheroll is a good example of an ICO that was announced but never actually completed. In June 2016, Etheroll announced their ICO that would let investors receive a share of Etheroll’s profits. However, on June 18th the founder of Etheroll announced that the ICO will not be completed due to the DAO hack that has flagged up security flaws in the Ethereum network so all of the invested Ether was returned to the investors according to the company’s blog.

Investing in ICOs is always a high risk/high return game

Remember, when you are investing in ICOs, gambling-related or otherwise, you are putting money in an entirely unregulated sector that carries a high level of risk. That is why it is important to only ever invest an amount you can afford to lose and to always conduct thorough research before investing in any ICO to reduce the chances of you losing your money.

Having said that, if you are a gambling expert and can tell the difference between a good gambling provider and a bad one, then picking the right bitcoin gambling ICOs could generate a very nice return on your investment.

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Bitcoin Wallet Luno Adds SegWit Support to Lower Transaction Fees

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Luno Adds SegWit Support

Luno, one of the most popular bitcoin wallets in Africa, has announced full SegWit integration for bitcoin send and receive transactions. Previously, Luno customers could only receive BTC through a legacy wallet address, which was not integrated with the recent Bitcoin blockchain upgrade SegWit. Only send transactions were SegWit compatible.

With the full integration of SegWit, Luno users can now enjoy cheaper and faster bitcoin transactions.

“By implementing SegWit internally, Luno has managed to reduce the send fees paid by customers by over 25% already. As customers start switching over to new SegWit addresses, this will translate into a further reduction in sending fees in the coming weeks and months,” Werner van Rooyen, head of marketing and communications at Luno stated.

Luno currently operates in South Africa, Nigeria, Malaysia, UK, and in 35 other European countries.

What is SegWit?

Segregated Witness (SegWit) was an upgrade to the Bitcoin blockchain that is intended to address Bitcoin’s scalability challenges as well as fix the issue of transaction malleability. With SegWit, signature data is separated from transaction data in order to enable more transactions to fit into each block. The signature data is kept in an extended block called the witness. As a result, bitcoin transactions become faster and transaction fees become lower.

In theory, the Bitcoin network can handle seven transactions per second. However, in reality, it is around four transactions per second. With the number of bitcoin transactions increasing as bitcoin’s popularity grows, transactions take longer as the unconfirmed transactions pool increases. Therefore, bitcoin users who can afford it have been paying higher transaction fees to incentivise miners to prioritise their transactions and, thereby, increase the speed of their transactions. At the end of 2017, this has led to the average bitcoin transaction fee spiking to over 35 dollars.

However, when SegWit addresses are used, bitcoin transactions become faster and the required resources decrease as well. Consequently, the transaction fees reduce.

How Can You Add a SegWit Wallet Address on Luno?

To add a SegWit address on the Luno wallet you have to follow these steps:

  • Open your Luno account either on the mobile app or the web app
  • Choose “wallets” from the menu
  • Click on your “BTC wallet”
  • Choose “receive bitcoin”
  • Click “add address” and follow the prompt

To receive bitcoin, use your SegWit bitcoin receive address. Legacy bitcoin addresses begin with 1 while SegWit bitcoin addresses begin with 3. Even after adding a SegWit wallet address, bitcoins sent to your previous legacy bitcoin address will still work. In addition, you can still send bitcoin from a SegWit wallet to a legacy wallet and vice versa since the transactions are still taking place on the same blockchain. But if you are sending bitcoins to and from a SegWit wallet, you can benefit from reduced fees.

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Bitmart Opens Cryptocurrency Mining Hardware Store in South Africa

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Bitmart Opens Cryptocurrency Mining Hardware Store

Bitmart, South Africa’s leading supplier of mining hardware, has opened a cryptocurrency mining hardware store in South Africa. This makes Bitmart’s retail outlet the first cryptocurrency mining store in Africa.

Products and Services Offered by Bitmart

Bitmart was founded by CEO Jacques Serfontein in 2015 to offer cryptocurrency mining hardware to South Africans. Currently, Bitmart offers GPU rigs, ASIC miners, GPU rig mining software, graphics cards, international mining rig monitor app, cryptomatic watches, hardware wallets, and motherboards. Customers can find GPU mining rigs that mine cryptocurrencies such as zcash, monero, decred, bitcoin, and litecoin.

Additionally, Bitmart provides services such as bitcoin mining farm design and deployment, mining training, antminer repair tickets, mining farm management using Genesis Hive, and shepherd services.

Through its shepherd services, Bitmart helps owners of second-hand miners to find buyers. Therefore, both sellers and buyers are assured of safe and secure transactions through Bitmart’s SSL-secured online shop.

According to MyBroadband, Bitmart is an authorised distributor of Avalon Miners, Genesis Hive, Trezor, Ledger wallets, KeepKey, and UniSat (satellite mining solutions) in Africa.

The company also supplies mining hardware to countries such as Japan, Dubai, North America, Australia, and England.

What Does Bitmart Plan for the Future?

Bitmart will be holding seminars in Johannesburg and Mbombela. The seminars will focus on bitcoin basics and advanced cryptocurrency trading. In addition, Bitmart will be introducing a satellite mining connection in partnership with Uniwisp that will allow mining rigs to mine from any place in the world. Uniwisp is an Internet service provider based in Nelspruit, South Africa.

 

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Kenya’s BitPesa Acquires Spanish Money Transfer Platform TransferZero

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BitPesa Acquires TransferZero

On February 8, 2018, BitPesa announced that it has acquired TransferZero, a Madrid-based online money transfer platform, which operates in over 200 countries using more than 50 currencies.

Why Did BitPesa Acquire TransferZero?

BitPesa, which is already operating in Africa and Europe, will be able to “set deep roots to UK and European licensing, bank accounts, and integrations” through this acquisition, according to the company’s statement on its blog.

“Europe is a hub for global remittance and payments companies. Digital currencies and decentralized technology have hit critical mass in the financial services and payments space. It is no longer a question of whether this technology will have staying power [but] which specific technology and what product iteration will launch and scale first […],” Elizabeth Rosiello, founder and CEO BitPesa said.

“BitPesa has the support of top-tier, institutional investors and a network that will help to bring TransferZero’s technology to the next level. With this support, we will be able to provide even more efficient transfers and user experience,” Luis Cambronero, former TransferZero CEO and present Managing Director, BitPesa stated.

Setting Up Infrastructure Across Europe and Africa is a Priority

“Setting up infrastructure across Europe and Africa has always been a focus of ours. […] We’ve just doubled our bank accounts, our infrastructure, and it’s licensed by the Bank of Spain as a payment institution. So we are fully compliant with PSD2 regulations […],” Rosiello said.

“This is truly a partnership where the whole is greater than the sum of the parts, allowing BitPesa to solidify our leadership in this space. By bringing our regional and technological expertise together, we will further accelerate our month-to-month growth,” Rossiello asserted.

TransferZero will neither change its name nor its headquarters. In addition, its employees will remain with Bitpesa.

This acquisition from an Africa-based bitcoin startup of a European fintech startup shows that leading African startups can make waves beyond the borders of the continent and create a positive impact on a global scale.

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