I remember when I first got into crypto and read Bitcoin’s whitepaper. It was a time when understanding the value of this disruptive technology, which promised to revolutionize finance and payments, was quite challenging.

The Bitcoin whitepaper, authored by the pseudonymous Satoshi Nakamoto and titled “Bitcoin: A Peer-to-Peer Electronic Cash System,” primarily focuses on presenting Bitcoin as a decentralized digital currency. Nakamoto outlines Bitcoin’s utility as a medium for electronic transactions, aiming to solve the problem of double-spending without relying on a trusted third party.

Specifically, the whitepaper emphasizes Bitcoin’s usefulness for facilitating online payments directly between individuals without the need for intermediaries like banks or payment processors. It highlights Bitcoin’s potential to enable fast, secure, and low-cost transactions across borders, making it particularly beneficial for international remittances and online commerce.

While the whitepaper doesn’t explore into specific applications beyond payments, it does mention Bitcoin’s potential to serve as a store of value, similar to gold, due to its scarcity. However, the primary focus remains on its utility as a peer-to-peer electronic cash system.

What Satoshi perhaps didn’t anticipate was that Bitcoin would give rise to an expansive crypto ecosystem, bringing forth new cryptocurrencies and innovative use cases. For instance, Ethereum introduced programmable blockchain capabilities, opening the door to a multitude of possibilities. In fact, cryptocurrency introduces a multitude of diverse use cases that challenge the traditional financial system. These include borrowing and lending, decentralized liquidity provision, gaming, NFTs, and numerous others.

Bitcoin has become an asset available for trading in numerous markets, providing a 24-hour open market for trading. However, it has also created an unregulated market where retail investors risk their savings by leveraging up to 125 times. It’s quite astonishing, isn’t it? Trading Bitcoin has emerged as an alternative to traditional forms of gambling, such as lotteries, casinos, and sports betting. Moreover, traders engage in an illiquid and highly manipulated market, adding further risk to their investments.

This is how crypto exchanges transformed into massive digital casinos. Overleveraged individuals poured more and more money into these exchanges, believing they were investing, when in reality, it was akin to gambling. We can say that trading is a more glamorous way of gambling. Exchanges like Binance, Bitfinex and Bybit amassed billions by capitalizing on the ambitious and addictive nature of humans. The catch is, they profited from your losses. They became the house — the house that always wins. It’s simple statistics; they have EV+ (Positive Expected Value). When something has an EV+ outcome, it suggests that, on average, it will result in a favorable or profitable outcome over the long run. Yes, the more you play, the less likely you are to win, and if you are the house, the more they play, the more likely you are to make a profit.

Casinos stand as one of the most profitable legal enterprises globally, always coming out on top. Acquiring a casino or a share of its profits isn’t a simple task. However, with the evolution of crypto, a new form of gambling has emerged: meme coins.

Meme Coins

I remember the days when Dogecoin debuted, and skeptics claimed it lacked real utility, thus shouldn’t hold any value. They were all proven wrong. More meme coins entered the scene, and skepticism persisted. It appears that the more skeptical one is about crypto, the more opportunities they miss. That’s why you don’t necessarily need a high IQ for crypto investing. Ironically, my worst decision in my crypto trading journey was believing I was too intelligent for meme coins.

Yep, I missed the boat. Nevertheless, when constructing my crypto portfolio, I allocated 3% of it to meme coins. Meanwhile, degens were raking in millions simply by trading meme coins. As of the time of writing (several days after the peak of the meme coin frenzy), the market capitalization of meme coins sits at $61 billion. None of them serve any real purpose; they’re more like wild religious or cultural phenomena. And they’re revolutionizing the gambling landscape.

New form of gambling

Gambling is often a solitary activity; you sit alone at a table or in front of a screen. You lose and win by yourself. However, meme coins have birthed a culture akin to a casino, where retail investors rally under a common flag. They hope for their coin’s value to skyrocket, enabling them to earn more. The more individuals they attract, the greater the profits for all, fostering a sense of community. Consider the multitude of people drawn to the allure of dopamine rushes, the illusion of “investment,” and a shared sense of belonging. Indeed, this encapsulates the most thrilling sensation of gambling ever experienced by a human.

You can accumulate millions or lose them in a flash, but in my foolishness i believe I’m too clever for meme coin trading — a paradox I realized as I wrote these words. So, I discovered a new approach to engage in this new era of gambling: becoming part of the house.

As an asset manager, you may perceive meme coin trading as highly risky and understandably challenging to justify to your investors — who would trust you with their funds to gamble on worthless tokens? However, people fail to recognize the remarkable opportunity that lies ahead. Thanks to this decentralized new era, we can join the house. The question is how.

Meme coins operate on the blockchain. So, if you are so inclined to believe you are cleverer than you are, you can sidestep direct investment in meme coins and instead invest in the blockchains that support them. By investing in the infrastructure they rely on, you position yourself to benefit from every transaction, as the blockchain’s revenue accrues to token holders.

So, you might be wondering, where do meme coins operate? Well, the answer isn’t Ethereum, Bitcoin, or Cardano. It’s Solana. All Ethereum maximalists had their doubts about Solana, much like I did with meme coins, and they missed the boat as well. Since Solana launched its mainnet, I was among the first users on Raydium (the first decentralized exchange running on Solana). I vividly recall the initial hours of its operation. While it wasn’t the smoothest launch I’ve witnessed, I distinctly remember my first impression upon executing my first transaction on the Solana blockchain. I couldn’t believe how fast and inexpensive it was. I even messaged some of my crypto Telegram fellow enthusiasts, saying, “What on earth is this blockchain called Solana? It’s incredibly affordable, and your transactions are ready in seconds.” It’s crazy to think about that feeling compared to the Ethereum network and the BNB chain (both of which were active for interacting with smart contracts and decentralized exchanges before Solana’s launch).

Then I became a supporter of Solana. Since that first moment, I haven’t been a fan of anything else and I don’t care about religion in crypto (as so many do). As I’ve seen the tech fail so many times, scams and Ponzis everywhere, I don’t marry to any token. At every crypto gathering, I consistently make the case for Solana with this argument: “It’s the blockchain for the masses, and if we want crypto to reach everyone, we need inexpensive and rapid transactions.” People will always prioritize affordability and speed, and safety is no exception. Yet, many prioritize affordability and speed over safety. Always remember, humans are not always logical, and in the realm of crypto, even less so.

For the wealthy, Ethereum blockchain might serve their needs, but for those less privileged, Solana stands as the optimal choice. I won’t mention Layer 2 solutions offering cheaper and faster transactions as simplicity is key— users seek a blockchain that’s intuitive and free from complexities. Solana has been pivotal in democratizing crypto, significantly reducing barriers for entry among both users and developers.

Conclusion

Humans are inherently drawn to gambling due to the thrill of risk and reward, the release of dopamine, socialization, escapism, and economic incentives. The gambling industry thrives globally, valued at over $450 billion USD in 2020, and projected to continue growing. Factors driving this growth include technological advancements, market demand, regulatory changes, and aggressive marketing. Despite efforts to address gambling addiction, as long as there is a demand for excitement and potential rewards, the industry will persist and evolve.

This is an unprecedented opportunity to become stakeholders in the gambling “house” and profit from players without any entry barriers. By investing in the infrastructure that facilitates token transactions, we’re entering a realm where barriers to entry no longer exist in a business with guaranteed positive value. This is our chance to participate in one of the world’s most lucrative industries, and it’s time to seize it.

For the first time, we’re witnessing a perfect product-market fit in the realm of cryptocurrency. It’s the inaugural instance where we see a tangible use case for crypto, with gambling emerging as its primary utility. Solana has firmly established itself as the preferred chain for retail traders, gamblers, and crypto enthusiasts.

Please note that all content I provide is not financial advice; it is essential to conduct your own research and due diligence.

Namaste,

Juan Bautista Selvatici
Lawyer, Quant and future master’s degree holder in Fintech.
Founder, Seltik Digital Assets