It has been a little over a decade since the first cryptocurrency was unveiled, and while that may seem like a short time, it has been more than enough for the sector to grow in more ways than we would have ever imagined. Digital currencies such as Bitcoin, Ethereum, Ripple, and Litecoin have successfully managed to prove that their usefulness in global finance.
For a while, cryptocurrencies were nothing more than a buzzword that was only associated with tech-savvy enthusiasts. However, their proponents have worked hard to ensure that they can showcase all of the viable use cases of these digital tokens. One of the areas where digital currencies and accompanying technologies have been able to prove their usefulness is in the gambling sector. Both of the industries have received a tremendous boost thanks to the internet, and this is part of the reason why they are able to merge so well.
Cryptocurrency gambling has been going on for quite some time now, and it is only getting better. The gambling industry has been known for being very welcoming to new and innovative technologies, which makes the tie-ins with crypto not that surprising. However, there are some very critical reasons why cryptocurrencies caught the attention of the gaming industry.
Creating A Gambler’s Paradise
Commercial gambling activities have been around for centuries, and online gambling has been going on for decades now. Despite that, there have been some rather pressing issues that the industry had not been able to solve, that is, until digital currencies rolled around.
In essence, the arrival of digital currencies and associated technologies, including blockchain, has led to the emergence of what can only be termed as a gamblers’ paradise. The only way of truly understanding this is by looking at some of the solutions that have technically been provided by crypto.
More Security and Fairness:: With tons of online gambling sites, operators are switching to crypto to assure players of the security of their funds and the fairness of the games. Innovations like smart contracts have made gambling sites more trustworthy than ever before.
Anonymous Gaming: People who have always wanted to keep their gambling activities incognito can now enjoy that by using digital tokens.
Unmatched Speed: Digital currencies process transactions extremely fast, regardless of whether you are depositing or withdrawing funds. These transactions take mere seconds or even less.
Lower Costs: Gamers no longer have to deal with exorbitant transaction fees imposed by many of the existing financial service providers. Crypto does this by cutting off intermediaries and charging extremely low fees on transactions.
Leveraging the Varied Approach
Contrary to what many may assume, the sharp rise in cryptocurrency-powered online gambling activity is not attributable to a one-size-fits-all approach. As a matter of fact, it is safe to say that innovation and diversification are primary drivers of the growth.
As it stands, many of the premier online gambling sites have still not jumped on the crypto bandwagon. This is because they would rather stay compliant instead of adding this fringe solution to gain further acceptance. That stand is justifiable, but it has not stopped the sector from growing. Besides, it is just a matter of time before regulated digital currencies make their way to more mainstream online casinos. Casinos like Wild Casino are already accepting crypto payments using currencies like Bitcoin and Ripple.
Speaking of regulation, it is a core part of the growth of the crypto gambling sector with crypto casino sites. Digital currencies sit in a legal grey area in so many jurisdictions around the world, and this makes them the perfect option of many online gambling operators, especially those catering to customers in markets where they are not regulated.
Getting more of the already existing online casinos to adopt digital currencies and blockchain is just one of the ways that crypto gambling is growing. The other way has seen to the creation of a whole new paradigm.
Over the past few years, we have witnessed the launch of several quite exciting innovations in the gambling sector, albeit with a huge twist. Decentralized gambling is a totally different paradigm that has taken the industry by storm.
There have been some shortcomings with regards to fully decentralized gambling or blockchain-powered casinos, but these are being addressed by even more innovative solutions. For instance, the developments that are being pursued around Ethereum are super impressive. Technologies such as Optimistic Rollups have made decentralized gambling even more efficient while keeping all of the perks that gamblers expect from it.
As much as there are impressive developments in the sector, we have to pay attention to mainstream adoption just as much as we do to the technical aspects. Adoption has so many dimensions, and in this case, we can view it from the perspectives of the users themselves and the investors.
Needless to say, the sharp increase in cryptocurrency gambling is because of the customers willing to use digital currencies to place bets. Today, more people have access to digital currencies than ever before, and they are slowly beginning to use them just as much as they do fiat currency. This does not only apply to online gambling but even other purchases, both online and offline. In many ways, this is perhaps the most significant milestone that digital currencies as a whole have been able to achieve since they were unveiled to the world over a decade ago.
Investor interest is another core factor when it comes to mainstream adoption is investor interest. Their input has certainly been of huge benefit to the industry. It, however, took quite a bit of time for them to be convinced of how lucrative the sector is as well as all the benefits it could offer. The proponents of crypto gambling had to show that the sector was a worthy investment. Thankfully, this has paid off quite well, and now even some traditional financial institutions have begun to take crypto seriously. Moreover, there are tons of investments in the sector, as seen from the moves by several investors to get behind crypto-powered gaming sites.