Press releases
Volatility Should Not Matter – A Bitcoin Casino Loyalty
Bitcoinist | Mar 13, 2020 | 16:00
Purpose of this document is to draft a unique Bitcoin casino promotion that will take advantage of the Crypto price volatility.
It has come to our attention that the number of deposits decline in the period when Bitcoin has high price jumps as well as when Bitcoin price drops. The reason for this is that players are reluctant to hold an asset to gamble with when uncertainty is high both for the possibility to earn more while they win as well as to earn less for their wins if the price drops.
As a Bitcoin casino Bspin.io can have added value in the achieved hold of players losses if the price of Bitcoin rises in the future, after their loss.
This added value is the loss to the player because if they were to hold on to their Bitcoins instead of gambling with them, they would have more money to play with in the future.
As the price of BTC is unpredictable but since inception obviously rising, the added value of the price increase is converted to a Loyalty scheme which would return player’s opportunity cost if he were to hold on to their Bitcoins.
The Idea:
- Players get cash back if the price of BTC rises week to week from their last week’s loss to compensate for opportunity cost if they were not gambling with their assets.
- Players do not get cash back if the price of BTC falls week to week from their week’s last loss as they actually lost less due to the price drop and were better off by gambling.
The margin on the turnover stays the same for the casino while we diminish the influence of volatility while gambling with highly volatile assets.
Unique selling points:
- Uncertainty of the cash back increases the gain opportunity as it can sometimes be very high – week to week (BTC is known to jump as high as 25% or more weekly)
- No risk for the casino (If the BTC price drops there is no payout and if it rises it is the added value the casino is giving away)
- Diminishing the influence of volatility in Crypto gambling in general and not only for this particular promotion as this will influence the entire perception on gambling with crypto.
- Adding a gambling element with uncertainty to a Loyalty scheme.
- Merging trading psychology with gamling
- Launching a unique promotion in Crypto gambling
- Players come back to the casino if the price rises (Increased engagement)
Loyalty scheme detailed:
Bitcoin Value Weekly CashBack at Bspin.io
- Players get cash back if the price of BTC rises week to week from their last week’s loss to compensate for opportunity cost if they were not gambling with their assets.
- Players do not get cash back if the price of BTC falls week to week from their week’s last loss as they actually lost less due to the price drop and were better off trying to earn money by gambling.
- In order for the players to receive cashback, the price of BTC has to be higher than last week’s average (7 days price average is calculated, Monday opening to Monday opening and compared to the Monday opening price).
- A time period for cash-back payout is set to once per week each Monday.
If the players lost money the week before and the price of BTC on Monday is higher than the price average each day of the week before combined, they get cash-back in the percentage of that positive difference.
| Mon | Tue | Wedy | Thu | Fri | Sat | Sun | Average | |
| BTC price | 100 | 120 | 100 | 90 | 80 | 70 | 100 | 94.2
– |
| BTC price | 100 | 100 | ||||||
| Difference | 5.8% | |||||||
The 5.8 points difference is converted to the CASH-BACK percentage (5.8%)
The Loyalty program is set in 3 different levels of cash back
Level 1 – If the player lost less than 100.000uBTC in the past week the calculated percentage is multiplied by 1X
Level 2 – If the player lost 100.001uBTC to 200.000uBTC in the past week the calculated percentage is multiplied by 1.50X
Level 3 – If the player lost lost 200.001uBTC to 400.000uBTC in the past week the calculated percentage is multiplied by 2X
