While many cryptocurrencies are associated with investing, it’s important to remember that currencies such as Bitcoin and Ethereum can serve practical purposes. Crypto-powered casinos already appreciate this fact and 2023 could very well represent a red-letter year for these online portals.
Today, Ron from Crypto Lists takes a look at crypto casinos, some of the history of how they came to be, and whether they pose a threat to traditional online casinos and betting sites. Or, if they’ll simply integrate into the broader gambling ecosystem.
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Crypto Casinos: A Quick History Lesson
Believe it or not, the first true crypto casino was launched in 2012. Dubbed “SatoshiDice” as a tribute to the anonymous creator of Bitcoin, this portal allowed users to bet on the outcome of virtual dice rolls (not exactly what you would call an engrossing experience, but a start). SatoshiDice was then sold in 2013 for a total of 126,315 Bitcoins; a hefty return of nearly $11.5 million dollars at the time (1).
It didn’t take long for other casino owners to see that crypto-powered transactions could very well represent the wave of the future. Numerous portals began popping up from 2015 onwards. In fact, it’s now estimated that more than 900 of these sites currently exist. As expected, most of the inital sites were Bitcoin crypto casinos.
Still, we have to wonder if this industry trend represents nothing more than a short-term viral fad or if crypto casinos are indeed here to stay. Let’s take a quick look at some pros and cons of these payment methods before drawing an objective conclusion.
What’s the Hype with Crypto Casinos?
We’ll first examine why casino owners are becoming keen to leverage the benefits of cryptocurrencies. What makes these transactions so appealing?
Security and anonymity
Many online gamblers and sportsbook enthusiasts are rightfully concerned about the security of their personal information. This is even more relevant when discussing ongoing threats such as phishing, hacking and malware. The decentralized nature of the blockchain ensures that details will always remain behind closed doors. Such a robust firewall is simply not possible with traditional options such as bank transfers and credit cards.
Transaction fees and processing times
Unlike standard point-of-sale (POS) systems, crypto transactions offer extremely low fees. In fact, many sites even provide zero-commission options within their transfer protocols. This is obviously good news for players who hope to maximize their bankrolls.
Let’s also not fail to mention that many crypto-generated transactions can be completed within a fraction of the time that would be required by debit cards and wire transfers. In terms of on-demand funds, cryptocurrencies definitely offer the leading edge.
Finally, cryptocurrencies are not subject to exchange rate fluctuations. The same can’t be said when referring to fiat currencies such as the Dollar, the Pound or the Euro. This also signifies that players players can access online casinos that might not recognize lesser-known payment options such as the rupee or the South African rand.
A hobby during bear markets?
One of the aspects driving activity on crypto casinos is the bear market. Yep, in fact it’s been observed that during downturns people want to put their coins and tokens to good use by gambling with them on slots, table games, sportsbook, and more.
The Possible Downsides
We’ve already examined some of the reasons why crypto casinos are generating a fair amount of interest. Still, it’s crucial to remember that some hurdles may need to be overcome. Possible issues highlighted by Crypto Lists include:
- The potential for future industry regulations to be implemented.
- The number of customers within a demographic that actually pay with cryptocurrencies.
- Public recognition of the associated benefits.
- The inherent volatility of cryptocurrencies themselves.
There could also be technical stumbling blocks such as how to modify a point-of-sale system to accept crypto payment options. Still, these are relatively minor bumps in the road as opposed to obstacles that can’t be overcome.
The Next Big Thing in Online Gaming?
What does the team at Crypto Lists think about the future of these casinos? Although we certainly don’t possess the proverbial crystal ball, some logical conclusions can be drawn. The first is the simple fact that for better or for worse, cryptocurrencies are here to stay.
Secondly, online security threats should enable cryptocurrencies to represent an even more attractive payment option in the not-so-distant future. When we then remember that players are always looking to streamline their overall gambling experience, it’s perfectly logical to conclude that these casinos are set to become even more popular.
Whether you’re a fan of virtual gaming or you simply wish to know what might be just over the digital horizon, crypto casinos illustrate how the blockchain has made its way into the lives of everyday consumers. As always, be sure to check back with Crypto Lists in order to remain “one step ahead of the game”.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.