Here we take a brief look at some of the founding principles behind bitcoin, explain why transacting in cryptocurrencies is better than using fiat currencies, and ultimately how that means Cloudbet can consistently offer some of the best market prices available - which it has extended to zero margins on 92 matches to celebrate the return of the EPL.
It started with a white paper...
“Bitcoin: A peer-to-peer Electronic Cash System” is the title of the white paper penned by Satoshi Nakamoto. It is no exaggeration to say that for early converts to Bitcoin it was the rallying cry on which a financial systemic revolution could begin. This was a game-changer; indeed, a world-changer. It hasn't happened yet, but many would argue it is well underway.
After the abstract, the opening lines read:
“Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the system works well enough for most transactions, it still suffers from the inherent weakness of the trust-based model. Completely non-reversible transactions are not really possible, since financial institutions cannot avoid mediating disputes. The cost of mediation increases transaction costs, limiting the minimum practical transaction size and cutting off the possibility for small casual transactions, and there is a broader cost in the loss of ability to make non-reversible payments for non-reversible services.” (Cloudbet’s emphasis)
But what does any of this have to do with Cloudbet and its ability to offer players zero margin bets - giving up its profits on all this action - for the 92 matches left in the EPL season?
Lower transaction costs mean lower margins
Well, the crux of the matter boils down to those transaction fees that banks must charge for playing their role as a trusted third party - this is where transacting in cryptocurrencies gives the customer the greatest two-fold benefit: operating on the blockchain means that those fees Satoshi writes of are now obsolete, so lower operator costs can be passed on; and secondly, settlement times are slashed, so you get your winnings faster and more easily.
For contending with charges such as handling fees, international transfer SWIFT charges, and the headaches of credit card charge-backs (double spend), fiat sportsbooks compensate by charging higher margins on the odds that they offer. If an operator doesn’t have to take a 3-7% hit on transaction fees, then it can pass those savings on in the form of lower margins.
That’s where Cloudbet sits.
Since its inception in 2013, it has been able to consistently offer low margins and best prices in its sportsbook, which for bettors, is a massive boon when it comes to managing your bankroll over the long term.
To be clear, there is still a cost associated with having your digital transaction processed on the blockchain, but suffice to say, the amount pales in comparison to what a traditional financial institution and fiat-currency processing parties charge to conduct the equivalent transaction.
Cloudbet is, and has always been, a pioneer
Cloudbet is not just a sportsbook that offers settlement in cryptocurrencies; it is a crypto sportsbook. That means you bet natively with crypto, so there are no fiat currency conversions to worry about, plus cryptocurrency performance as a store of value gives Cloudbet the opportunity, thanks to its financial muscle, to do something fiat books fear - offer customers the opportunity to place bets in a zero margin window.
What’s more, offering this opportunity to up to 1000 players with potential returns of up to US$1000 equivalent per match, for the duration of the entire 92 matches left this season… well, that goes far above and beyond what you’ll find available on any other website.
And don’t forget, Cloudbet offers some of the highest limits available too. Even when the zero margin promotional window is open, players are welcome to a piece of the action at our competitive regular market odds.
From the very start back in 2013, Cloudbet has strived to give players next-level experiences; it has blazed trails and pushed boundaries.
To us, this zero margin promotion is, on a meta level, simply an extension of that. We always look to raise the game.
Sign up today and get involved.