Cryptocurrencies are once again hitting front-page news, with Bitcoin recently smashing its all-time high and nearing a value of $100,000 per token. With the online gambling industry also thriving in recent years, it’s no surprise that crypto-specific casinos are the hottest trend right now.
But it goes beyond people jumping on the latest fad or bandwagon. Crypto casinos have been rising steadily over a long stretch of time, with a core user base that is now being supplemented by the crypto’s sudden sharp rise in value.
Bitcoin is a Legitimate Payment Method
Cryptocurrencies are not like stocks or shares, as they can be used as a payment method. In 2021, El Salvador became a trailblazer by being the first country to welcome Bitcoin as legal tender.
With anywhere from 10-20% of the population now owning some form of cryptocurrency, it’s clear that it is rapidly becoming mainstream. 2% of Americans have used Bitcoin to make a payment, and that figure is also on the upswing.
So, with cryptocurrencies now being used for their original intention, rather than only as a store of value, it’s logical for e-commerce platforms to widen their payment processing options to include Bitcoin, Ethereum, and other popular digital methods.
Convenience and Speed
Crypto casinos can be a far more convenient way to play compared to ‘traditional’ iGaming establishments. That’s because cryptocurrencies are universal, they’re not tied to a specific country or region.
This theoretically makes it far easier for gamblers to interact with online casinos, making deposits and withdrawals quick and easy. Instead of waiting for a bank deposit, which can sometimes take days, crypto payments are instant.
It also means that players can register to play in casinos based in other countries, without needing to pay for exchange fees. You can simply use crypto, which does not incur FX charges.
Potential Risks
Crypto casinos now have a larger presence in the wider gambling market, but still occupy a relatively small role, despite recent growth. There are several explanations for this:
Volatility of Cryptocurrencies
For many, cryptocurrencies are a store of value first, and a payment method second. This means that there is inbuilt volatility in the price of Bitcoin compared to currencies like the dollar or Euro.
This can be unattractive to some players, with some fearful that their deposits will lose value over time. Instead, they will prefer to pay with their local currencies, which are a little more stable.
The more mainstream crypto becomes, however, the greater the price stability. Many currencies, such as USDC and Tether, are pegged against the dollar. If these become more common amongst the average consumer, expect crypto to have an even greater presence as a payment method.
In Some Cases, Lack of Regulation
Because crypto casinos accept ‘stateless’ payment methods, they are not always bound by regulations that are partly designed to protect players.
In addition, many crypto casinos are not forced to implement responsible gambling features, which is something many governments are pushing towards. Some establishments do this out of their own volition. Just look at New Zealand’s giant, SkyCity online casino, which encourages responsible gambling as part of a wider effort to support safe gambling for players. And an increasing number of crypto casinos are also embracing this approach.
For many gamblers, playing in cryptocurrency casinos is a more risky affair. This is not always the case, but often sentiment prevails and drives consumer behavior.
Gamble within a Gamble
Many people who like to gamble tend to like buying cryptocurrencies, too. This is because they share many common characteristics, with many people buying crypto as a punt to grow their assets.
The popular ‘to the moon’ meme is the idea of someone buying a lesser-known coin, simply with the hope that it increases in value quickly and sharply. See coins such as Doge, which have made some people millionaires.
These factors are all becoming less relevant, however, with crypto now entering a different phase in its life cycle. Crypto casinos are now also becoming more common and known amongst both novice and experienced punters. These days, the thought of paying for a transaction with crypto may not be the first thing that comes to mind, but it’s nevertheless an accepted method of payment.
Will Crypto Casinos Continue to Grow?
Following the US election results, crypto has been riding a wave of positive sentiment. And it’s looking like it’s now more than just a temporary boost, but a sign of things to come.
The Trump administration is predicted to be an ally of cryptocurrencies, with the new president expected to ease regulatory restrictions and further facilitate the role of Bitcoin in the world economy.
Bitcoin is now hovering around the $100,000 mark, and the signs are very much green. For those who are proponents of crypto casinos, that’s only a good thing. With casinos looking to expand how easily punters can make deposits and withdrawals, an increase in crypto casinos is an easy prediction to make.
