The Bitcoin Payouts over Online Poker Sites have Increased Exponentially Amid Price Gain
According to a new report, poker players prefer Bitcoin over fiat currency for payouts, and the demand for cashing out in Bitcoin has increased significantly.
Winning Poker Network is one of the major online poker networks that have to buy millions in Bitcoin to meet the demands of the users’ payouts in Bitcoin.
90-95% of Payouts are in Bitcoin
According to a report published by Bloomberg, Phil Nagy, the CEO of Winning Poker claims 90-95% of payouts are in Bitcoin. “Right now 90-95% of our payouts are people asking for Bitcoin because it’s going up. We are constantly having to go out and buy Bitcoin — lots. Lots. More than we’ve even had to before,” Nagy said.
Due to the rapid increase in the demand for Bitcoin payouts, the company is charging an additional 1.5% fee over transactions. According to Winning Poker’s CEO, Bitcoin constitutes 60% (approximately $100 million) of the total transaction volume of the poker network. And most of the demand for crypto payouts are coming from the users based in the United States.
The company also reveals that Winning Poker Network is not engaged in holding Bitcoin and convert it to fiat immediately due to high volatile nature of cryptocurrency.
Some market analysts have put another perspective that people are cashing out in order to avoid taxes. Crypto investor named Aaron Brown claims crypto-inspired people prefer Bitcoin over fiat currencies because they want to avoid taxes because it seems that the authorities cannot track digital payments easily as there is a case with the cash money.
Nagy also says that people demand from the company to give payouts in cryptocurrency because there is a feature of the fast liquidation over the platform. Nagy stated:
“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. And we are kind of stuck with it.”
People are also increasing their BTC holdings because they are expecting a big bull run in the future.