Earlier today, I was trying to explain why STOX was a good investment to some friends. Instead of forcing everyone to listen who wasn't interested, I told them I'd be writing this article instead. Within a few hours, someone in the group already pasted this:
The sports betting industry is huge.
It is predicted to be 56.7 billion dollars in 2018. Another site says 3 trillion.
Source: http://www.gambling911.com/gambling/how-big-online-sports-betting-industry-.html
More sources:
https://www.inc.com/slate/jordan-weissmann-is-illegal-sports-betting-a-400-billion-industry.html
http://www.dailymail.co.uk/wires/afp/article-3040540/Global-sports-gambling-worth-3-trillion.html
http://www.visualcapitalist.com/americas-multi-billion-dollar-sports-betting-industry/
Just simply look at how many sports betting sites are out there. Go to your local casino, your local racetrack, see how many people go there on the weekends, or even on a weekday!
The sports betting industry has huge margins. We're talking 10-30%.
Bitcoin exchanges take 0.25-1%, as a comparison. A lot of people don't realize just how high 30% is. But people pay them, because they are getting someone they trust to deliver them their betting results. If you bet with a friend, you might end up losing a friend, or he/she won't pay up, or they may have the exact same team you want to bet on.
So how is all this relevant?
This is a real world use of smart contracts. We have a lot of projects on Ethereum, but very few, in my opinion, have enough of an incentive for people to switch from their old ways. I'll give you an example. There's Status (status.im), but do you really see people using this over Whatsapp, Instagram, Kik, Facebook Messenger? What's the huge advantage people have to switch over?
But here are real advantage people have to using a decentralized betting market, like Augur/Gnosis/STOX:
- You don't have to trust anyone! That's the biggest benefit to decentralization.
- sure, you can trust your casino, probably, but they take the highest fees
- You take out the middle-man.
- You can bet against people worldwide.
- You can bet anything! Not just sports. So the market is BIGGER.
- Lower fees! See above. For all of the above reasons. Would you rather bet $100,000, and win $170,000 (30%) or $195,000 (5%)? That's a whole $25,000 difference. On a network where you get your money faster, with less fees.
The last reason and the first reason is enough for people to use this over what they are using now. It would be for me, if I had to place a sports bet. $25,000 more on $100,000? Hell yes.
But why do I seem to be siding with STOX, over Gnosis and Augur?
Because I read this article. https://medium.com/@fermanto12/stox-vs-gnosis-vs-augur-506997c230dd
The summary: STOX is much better value. Unlike Augur, you get your money/result much quicker. And they concentrate on in my opinion, the biggest real world use. Betting. Not 'decentralized prediction markets.'
But again, this is long term. I imagine it will take a while for them to develop this project, and another while for it to become popular. When I say long term, I mean at least a few years down the road.
Disclaimer: This is not Investment advice, I am not an investment advisor, I am simply sharing my opinion. Do your own research and your own due diligence before making any investments.
gj
upv
Thanks for the write up! If Mayweather promotes this at his big fight, could be huge!
Augur is not for sports betting. Of course there are some people posting some polls on that topic, but that will not be the main topic.
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