Cryptocurrency is gaining more popularity daily, and its evolution has revolutionized many online businesses, including the gambling industry. Crypto gambling involves using digital assets such as Bitcoin, Ethereum, and Litecoin as payment options on online casinos. Adopting crypto to participate in online gambling is a game changer for the gambling industry. Numerous crypto gambling platforms are popping out daily, and many are jumping on board.
However, some people need second thoughts about embarking on the trend. What led to this hesitation is that many believe there are a lot of concerns about the sustainability of crypto gambling. The big question in their mind is, ‘Will crypto gambling ever phase out’? Therefore, we will explore answers to this kind of concern and other reasons that guarantee the sustenance of crypto gambling.
This guide will enlighten you about the current state of the crypto gambling industry, challenges, and potential future. Click on this link to learn more about the best casino games to enjoy gambling with crypto.
The Current State Of The Crypto Gambling Industry
First, let’s review the crypto-gambling industry as it stands today. According to published statistics by Grand View Research, revenue from online gambling worldwide reached over USD 50 billion in 2019 and is forecast to increase exponentially at a compound annual growth rate (CAGR) of 11.5% between 2020 and 2027.
The report also pinpoints some factors behind the widespread use of crypto gambling. Significant factors driving crypto-gambling include the growing adoption of smartphones and tablets, high-speed internet connectivity, anonymity, and rapid transactions. Many of these merits are not available on traditional gambling platforms.
Transactions on traditional gambling platforms are often slow and expensive for average players. However, crypto gambling offers a faster and cost-effective alternative to settling payments on gambling platforms. This feature entices more people aboard the space and ensures its longevity.
Another key advantage, as revealed by the Grand View report, is the level of anonymity that crypto gambling offers. It is a common practice on traditional online gambling platforms for users to submit personal information before getting started. However, crypto gambling allows users to stay anonymous and play betting without revealing much information to potential intruders. This anonymity is another appealing feature for players who value their privacy online.
Some Challenges With The Current Crypto Gambling
After discussing some merits of crypto gambling, discussing some risks and challenges in the industry is essential. By addressing these challenges, the longevity of the crypto-gambling industry looks better.
The primary concern about crypto gambling is the volatility of digital currency. Cryptocurrencies are known for their periodic price fluctuations, which can affect the value of bets and winnings on crypto gambling platforms.
The value of your winnings could change dramatically between winning and the time you cash out. Such volatility makes some gamblers reluctant to use crypto due to the potential for significant losses.
However, to address the challenge of cryptocurrency volatility, some crypto gambling platforms have begun to offer stablecoins as a payment option. If stablecoin is a new term to you, keep in mind that stablecoins are cryptocurrencies pegged to a reserve asset or currency of a country, such as the US dollar, and their value is less volatile.
Some popular Stablecoins include; USDT, Binance coin BUSD, Paxos standard PAX, and so on. This recent development eliminates the risk of losing funds to price fluctuations and puts players’ minds at rest by enjoying a good store of value.
Another considerable concern about crypto gambling is its legitimacy of crypto gambling. Some worry that some people use the platform for money laundering or other illegal activities. Also, Governments of some countries restrict crypto gambling activities in their country. This restriction comes from improper crypto-gambling regulations, which can pave the way for fraudulent platforms.
A relative solution to this challenge is for crypto gambling industries to work closely with governments to develop transparent and fair regulations. This would provide a stable and predictable regulatory environment for the industry to thrive and help reduce the risk of fraudulent platforms entering the market.
The Future Of Crypto Gambling
You will notice that there are short- and long-term solutions to all the concerns about crypto gambling. This shows that things can only get better in the betting space. With the rapid evolution of Blockchain technology, more innovations will ensure a better gambling experience with digital assets.
Blockchain technology allows for decentralized platforms that operate independently of any central authority. This decentralized protocol means that players can be confident that their games are fair and have a level playing field with other players.
Another potential innovation in the crypto gambling industry is smart contracts. Smart contracts simply refer to self-executing contracts written in code. These contracts will execute automatically when certain conditions are met.
This technology could be used to create new types of games and betting opportunities. It can also help automate the payment process of winnings. Generally, these features and much more show much room for improvement in the industry, and the potential future of crypto gambling is bright.
Several advantages cryptocurrency offers in terms of anonymity, security, and speed of transactions make them an attractive option for players. Also, these advantages outweigh the demerits, which makes people doubt the sustainability of crypto gambling. Solutions offered by crypto gambling assure that the industry is here to stay for the long term.
Crypto gambling features are attractive enough to bring more people on board. Therefore, wide adoption is a significant step towards achieving its sustainability and eliminates some minority concerns about it phasing out soon.
However, the industry must address challenges like regulatory affairs. They must also enlighten the public about the significance of using digital currency for gambling. If these challenges can be overcome, then the future of crypto gambling looks exciting and profitable for new and existing gamblers.
Finally, the growing acceptance of cryptocurrencies, in general, could also contribute to the growth of crypto gambling. So if you’re considering trying your luck with crypto gambling, now might be a perfect time.