Can Crypto Gambling Really Replace Bitcoin Casino?
According to 99Bitcoins, the media has predicted Bitcoin’s death a total of 340 times since 2010. But contrary to naysayers’ expectations, the king of crypto is the exact opposite of dead as it is approaching its all-time high. The price of a single unit is $18,591.01 at the time of this writing, up by 14.51% over the past week according to Coinmarketcap.
Over the more than 10 years of its existence, the top crypto by market capitalization has proven itself to be an extremely secure asset. The technology underpinning Bitcoin is mathematically secure and its network has never been compromised.
As a result, the big world of business has entered the crypto market, with mainstream players and investors eager to get a piece of the pie. Towards the end of October 2020, PayPal announced its intention to support Bitcoin among other top cryptocurrencies. A few weeks prior to that, payment service Square had announced its purchase of $50 million worth of BTC. Other financial industry players currently involved in Bitcoin include Robinhood and digital banking startup Revolut.
Investment firm SkyBridge has also filed a request with the SEC to invest in crypto. Such moves serve to reinforce the point that crypto is no longer considered to be a fad.
Bitcoin Gambling’s Rise to Popularity
Bitcoin gambling is among the sectors that have grown exponentially over the years. For instance, in the period between 2014 and 2017, punters wagered $4.5 Billion in BTC. Furthermore, from October 2019 to January 2020, the crypto gambling sector outperformed the overall crypto market by 5.3%.
More recently, in September 2020, cryptocurrencies created specifically for gambling had a combined value of over $150 million.
This comes as no surprise gave the benefits that come from Bitcoin gambling. For instance, the digital currency now allows 224 Bitcoin casinos to process instant deposits and withdrawals at lower costs. It also allows users to protect their privacy as they do not need to upload any sensitive financial information. Moreover, it is possible to avoid geo-location restrictions when using cryptocurrencies.
However, in spite of its popularity, BTC gambling faces one major challenge – volatility. Considering how fast the crypto market can swing in either direction., this becomes extremely frustrating when the volatility eats up a chunk of gambling profits, turning a victory into a loss.
Stablecoins – The Future of Crypto Gambling
Crypto gambling is now awash with different currencies, and one growing trend is stablecoin betting. Stablecoins are designed in such a way that their value does not fluctuate in tandem with the wild rides of the overall market. Rather, their value is tied to stable assets like major world currencies or assets like gold.
By making use of these tokens, gamblers are able to make deposits and withdrawals with confidence that the value will not fluctuate. Basically, they fulfill the original objective of digital currency without putting users through the pains of destabilization.
This nascent form of cryptocurrency essentially hits the sweet spot between crypto and fiat money. It offers all the benefits associated with cryptocurrency gambling. But at the same time, it circumvents the disadvantages associated with traditional banking systems. These include fraud, censorship and other weaknesses associated with a decentralized currency system.
Thanks to the launch of stablecoin gambling, there is a whole new world of innovative games for punters to enjoy. With the introduction of these new tokens, decentralized casinos are taking the crypto gambling experience to a whole new level.
Decentralized casinos use blockchain technology to run all operations in a bid to strike a balance between player satisfaction and house earnings. In fact, transaction processing does not require third parties as it is carried out by means of smart contracts.
Bitcoin casinos offer unique blockchain-based games that are mostly developed in-house and offer provably fair capabilities. As such, players can verify the integrity of algorithms used for determining wins and losses. Since there are no intermediaries needed for any aspect of the service, the games are also known to offer a lower house edge. Thus, players have higher chances of winning and prizes are also often bigger.
Indeed, the rise of stablecoin gambling and decentralized casinos is set to herald the next generation of online gambling.