From a portfolio point of view, the most attractive feature of sports wagering is its lack of correlation with other types of investing. This makes it an ideal portfolio diversifier.
Another asset that may fill this bill is bitcoin. It has no correlation with sports wagering or traditional investments. Bitcoin should thus also be a good diversifier despite its high volatility.
All fiat currencies lose their purchasing power over time. To see that, think back to the price of everything 50 years ago. Unlike fiat currencies that governments create at will, there is a fixed supply of 21 million bitcoin. If the demand for bitcoin as a store of value or a speculative asset increases, its price should rise. Here are two articles that show why a small allocation to bitcoin may make some sense based on its role as a portable store of value.
Having 1% or so of your net worth in bitcoin may not be that meaningful to you. But it would become meaningful if bitcoin appreciates 10 fold or more. This could happen due to speculative frenzy or greater recognition of bitcoin as a secure and transportable store of value. Wouldn’t it be nice if there were a way to combine a small bitcoin investment with sports wagering? Well, now there is!
Most offshore books use bitcoin only for deposits and withdrawals. They immediately convert bitcoin into fiat currencies once they receive it. But several books hold on to bitcoin for customers to use in placing bets and in holding balances. The oldest and highest-rated of these by sportbookreview.com is Nitrogen Sports.
What makes Nitrogen particularly appealing for those who can legally wager on sports offshore is Nitrogen’s discounted commission (vig or juice). There are three other established sportsbooks that offer reduced vigorish. But none of them let you hold bitcoin.
You will need to convert the dollars you want to bet into bitcoins when you make a wager. You can do this by dividing the amount of your dollar wager by the price of bitcoin at the time of your bet. Even easier, you can use a cryptocurrency converter app on your smartphone.
Good luck having double the fun with sports and bitcoin!