March Madness is one of the premier sporting events in America. Every year, dozens of teams gather to capture the NCAA basketball title. With a total of 67 games on the March Madness schedule, there are plenty of opportunities to have fun and make some extra cash.
Making extra cash sounds good. Making some extra Bitcoin sounds even better. Bitcoin holders, among other cryptocurrencies, often look for new investment opportunities. Online sports betting on events such as March Madness have emerged as a golden opportunity to invest in Bitcoin wisely. There are three reasons why investing Bitcoin on March Madness can become a profitable idea.
Cashing in on Market Share
Online sports betting has exploded in recent years. According to the American Gaming Association, roughly $10 billion in wages are placed on March Madness games. About $300 million flows through online sportsbooks. These numbers show that online sports betting is not a passing fad. It’s inarguably a fast-growing industry looking to expand its market share.
With an enormous stake going through the gaming industry on March Madness alone, investing in cryptocurrencies such as Bitcoin makes sense. The rationale dictates that online sportsbooks look to capture as much of the market share as possible. As a result, fans and bettors get great deals from online sportsbooks and retail bookies.
The rise of sports betting popularity has captured consumers who may have never placed a bet otherwise. For many, betting on sports was a “Vegas thing” until online sportsbooks made it possible for anyone to wager on sports. This trend includes Bitcoin investors looking to diversify their investment opportunities.
Investment Diversification
Investment experts always call for diversification. Diversification is an investment strategy that aims to reduce risk exposure. Investing in a single asset class (i.e., stocks, bonds, commodities and similiar vehicles) increases risk exposure due to volatility.
Consider oil. Oil has significant ups and downs, causing investors to lose significant chunks of their portfolios. The same goes for stocks. Stocks can skyrocket one day and plummet the next. Consequently, professional investors look to spread their investments out among various asset classes to reduce risk exposure.
Often, the earnings from one investment can offset the losses of another. Ultimately, breaking even is better than losing. Bitcoin holders can take a page out of professional investors’ books.
In addition to investing in traditional cryptocurrency exchanges, peer-to-peer lending, or interest-yielding accounts, Bitcoin holders can allocate a chunk of their holding to March Madness betting.
There is one catch, however. Like any other investment, sports betting carries its share of risks. Therefore, Bitcoin holders must do their due diligence to determine how much to allocate and which events to bet on.
Riding the Bitcoin Train
More and more sportsbooks have gotten on the Bitcoin train. Bettors can use Bitcoin along with other payment methods to fund their accounts. Given Bitcoin’s $410.2 billion market cap, it makes sense for sportsbooks to accept Bitcoin among payment methods.
Nevertheless, Bitcoin goes beyond being a payment method. Bitcoin allows new users to become interested in sports betting. Bitcoin’s inclusion opens up an entirely new market for sportsbooks.
For instance, players already accustomed to online gaming, such as multiplayer games and online casinos, may become enticed to join the March Madness action. As businesses across the economy embrace Bitcoin, and cryptocurrencies as a whole, sportsbooks can provide Bitcoin holders with compelling reasons to invest their hard-earned Bitcoin in attracting new market segments.
One Last Consideration
Cryptocurrencies such as Bitcoin and others are here to stay. There is no question that companies and investors have recognized the enormous, untapped potential in the crypto space. Additionally, businesses have realized cryptocurrencies’ increasing popularity, especially among younger demographics.
Coupled with sports betting’s gradual legalization across the U.S., cryptocurrencies fit naturally with sports betting. Cryptocurrency holders and sportsbooks have the opportunity to ride the cryptocurrency train to potentially lucrative results.
