If you really wish to keep nitpicking on gambling, I'll introduce you to a snippet of the Google TOS which invalidates any argument you may have as to whether or not your app can be considered gambling:

> "... including, but not limited to... "

The list of scenarios is non-exclusive, and Google is free to add additional scenarios and interpretations to the list as they please.

> Loyalty points convert to Bitcoin it's not complicated if it was would our rating be 4.5 we have not bought any users ever.

Your rating does not interest me, although I am slightly amused that you're saying you bought your users.

I, as an end-user reading your terms, find your payout scheme rather complicated: You only pay out above a certain threshold, only once a week, and only if you remember to register (despite probably mining regardless). A lot of areas that lead to no or missed payouts.

> Search rewards apps on Google there are hundreds of them. Those do not violate Google terms.

This is entirely irrelevant. Google's enforcement of a policy does not affect its validity.

Our app doesn't mine on their phone -- phone mining is not profitable at all.

This is even more suspicious if it is not sharing revenue generated by the user, as it then sounds like an unsustainable marketing stunt.

If the answer is “no”, then you’re either running a Bitcoin lottery (which is gambling), a Bitcoin skimmer (which is stealing), and/or a Bitcoin pyramid scheme (which is fraudulent).

From your reply, the answer is lottery/gambling, and from other replies, you did not clearly mark your app as a gambling app. That you’re gambling “points bought with watts” in no way contradicts that.

If I misunderstand which of the three paths your app is taking, or if somehow you’re constructing a fourth path, please correct me in plain and specific language on how you acquire (through mining or currency conversion) the Bitcoin it distributes to end users, and how you are not a lottery system such that each user receives the full value of currency their device is responsible for creating.

EDIT: As a footnote, your article is full of outrage but contains no technical details about your app, which is a common red flag for “we got caught doing something we’re unwilling to describe plainly”.

Our app has ads, like many apps do. That's the primary way we make money. We give users loyalty points for playing the game, they can cash those out for a very small amount of Bitcoin that is it.