Cryptocurrencies are versatile digital payment methods ideal for gambling and virtually all online transactions. Digital tokens offer cheap and fast transactions across networks, creating several options for funding your casino wallets or withdrawing winnings.
However, many sites discuss the allures of crypto gambling in length but not enough talk about how it came to be and where the industry might be headed. If you would like to get more insights about gaming with crypto, keep reading to see how far crypto gambling has come and what the future holds for iGamers.
History of Crypto Gambling
Crypto gambling seems like a recent addition to iGaming, so you might be surprised to know it has been around since the early 2010s. It took only two years since the creation of the first crypto for online casinos to start accepting it as a payment method.
Bitcoin Used in Poker Gaming Site 2011
Though Litecoin (LTC) and a few cryptocurrencies were launched between 2011 and 2012, Bitcoin was the only digital currency accepted by businesses at that point in time. Bitcoin was first introduced as a payment method in an online poker game called Seals with Clubs in 2011.
Rise of Bitcoin Gaming Through Dice Games
Dice games kicked off Bitcoin’s rise in online gaming, and dice games remain popular today with sites offering a huge variety of dice games at crypto casinos online. The introduction of these games was an essential stage in the blockchain’s evolution because BTC holders could now wager their tokens on the blockchain.
The most famous Bitcoin dice game to date remains the first one, created in 2012: Satoshi Dice. The game’s owner, Erik Voorhees, sold it for $11.5 million, or 126,315 Bitcoins, in July 2013. He also had to pay a $50,000 fine to the SEC in 2014 to settle an investigation into his past operations, but we digress.
Influence of Pioneers on the Market
The initial success of pioneering Bitcoin casinos created a bedrock for the industry’s growth. Crypto gambling attracted both gamblers and crypto enthusiasts because they were interested and wanted to be part of the experience.
Crypto casino games began diversifying and expanding, moving past the era of Bitcoin dice games. These casinos became crypto casinos and not just Bitcoin casinos when they began accepting alternate coins like Ethereum and Litecoin. Between 2015 and 2020, the use of Bitcoin became commonplace, so traditional (fiat) online casinos started accepting Bitcoins, and the number of blockchain-based casinos increased.
Innovations in Crypto Gambling
Over the years, various techs have been introduced to crypto gaming to improve user experience. The most iconic innovation in crypto casinos is smart contracts, which automate casinos by executing processes on the blockchain. Technical writer Chiradeep talks about the versatility of smart contracts in the crypto industry.
Although it is a recent addition to crypto gaming, virtual reality is also essential. It is a major driving force in the mainstream adoption of Web3 gaming and is about to become a massive part of iGaming.
Also, the tokenization of game assets and NFTs are Web3 techs introduced to online gaming. Crypto gambling started as online casinos that accept Bitcoin payments, but now casinos embody much more, embracing other blockchain and related concepts.
Why Has Crypto Gambling Become Mainstream?
Crypto gambling has become popular because people generally prefer gaming online, and since it is one of the options, it has led to increased adoption. Other than piggybacking on the coattails of the online gaming revolution, people have since realized that there are advantages to using cryptocurrency over traditional online gaming.
The primary reason why crypto gambling remains alluring is the decentralization offered by blockchain and its many advantages, which continue to offer users unique gaming experiences and pave the way for innovations in iGaming. Here are some of the benefits of gambling on the blockchain:
Seamless Transactions for Gamblers
Cryptocurrencies should not be an alternative but a first choice for every internet user. Why use a heavily controlled and limited payment method like local currencies when you have a versatile and secure method like cryptocurrencies?
As if it could not get better, it not only offers users freedom but allows players to gamble with lower fees and ensures faster transactions. It is also more convenient than traditional financial services because it requires fewer verifications.
Transparency and Fairness in Gaming
Transactions carried out on the blockchain are transparent due to its open and unalterable nature. Although it is a secure ledger, activities on the blockchain can be verified by any party.
Crypto casinos execute game logic, randomness, and other operations on the blockchain so all users can rest assured that their interests are protected. The game rules and odds of events can be openly verified for every crypto casino game, so you can always check for yourself. Since the casino is not in control, just like players, many gamblers have come to see and appreciate the fairness that crypto gambling embodies.
Enhanced Safety in Gaming
One reason crypto gambling has a long history is the security it offers compared to fiat currencies. Since each network registers transactions in an immutable record, they cannot be manipulated by third parties. Gamblers seek refuge in crypto casinos today because of the increasing security threats in our digital age.
Anonymity on Online Casinos
Yes, the blockchain is open to all, but its users are relatively anonymous. Unlike transactions with fiat currencies, using cryptocurrencies means you do not have to provide KYC information or financial data when depositing or withdrawing funds. For this reason, they are known as anonymous casinos, allowing uninterrupted play without risk of data and identity theft or judgment, as is rampant with traditional online gaming platforms.
Improved Accessibility for Everyone
Accessibility is one of the areas where online casinos trump land-based businesses, but it still presents a challenge in regular iGaming. Traditional payment methods, especially across borders, all have limitations, so they confine players to a few options around them. Fortunately, this is not the case for crypto gambling.
Blockchains are open to everyone from anywhere, so you can always have fun at any preferred crypto casino. You don’t need a specific card or bank account to get gambling at any crypto casino. Some websites might restrict regions for particular reasons, but you can quickly get around that with a VPN — although it is important to ensure your choice of crypto-gambling platform allows for VPN use.
Challenges Facing Crypto Gambling Since its Inception
Crypto gambling has advanced significantly since 2012 but has not overcome some of its drawbacks. If crypto gambling is to take center stage in casino gaming, these challenges must be addressed in the future.
The Highly Volatile Nature of Digital Currencies
Volatility is a common trait in digital assets, and it plagues every sphere of Web3, not just crypto gambling. Volatility should be a plus since it returns considerable profits to investors quickly but can also incur losses just as fast. It is hard to define how much you won or lost while gambling if the crypto’s price is fluctuating.
Many factors affect the price of digital tokens, and sadly, these factors are not entirely manageable. Bitcoin’s recent liquidation is indicative of the volatile nature of cryptocurrency and why some gamblers are hesitant to rely on an ever-changing market like Bitcoin.
The Currently Fluid Regulations in iGaming
Crypto gambling does not have a concrete regulation in most parts of the world. Players and casino owners cannot safely say what actions will put them at loggerheads with the law. It scares businesses from venturing into crypto gambling and players from trying this experience. This divergence in regulation from region to region might have negative effects on crypto gambling’s long historic run in time to come.
The Challenge of Scalability For Online Casinos
This is a problem that affects the entire crypto industry, not just crypto gambling. Scalability is the ability of a business to expand its services and workload without losing quality and efficiency, i.e., if the company can replicate its service on a larger scale.
Increased transactions can lead to throughputs or latencies, making crypto gambling less feasible. You may also experience higher transaction fees during network congestions, which defeats the purpose of using cryptocurrencies. Crypto gambling outfits and other Blockchain businesses have to implement scalability solutions for a better chance of growing.
The Heavier Cost of Damages
It is an advantage that crypto casino games cannot be tampered with, but it can be a massive disadvantage if there are any errors. Since the blockchain cannot be interfered with, errors cannot be easily corrected, leading to heavier damages. Sometimes, the error comes from the blockchain rather than the casino, and the casino will need help figuring it out.
Future Predictions in Crypto Gambling
Here are some things that could happen in the future, considering the current trends in crypto gambling:
There Will Be A Higher Level of Control in the Industry
Regulatory bodies worldwide would have to find a consensus on crypto iGaming regulations. Gambling is generally a highly regulated activity, so it should not be surprising if crypto gambling gets more controlled soon. This would help create a structured identity for the industry and guarantee its continual innovation and development.
Virtual Reality Will be a Staple
From boards to video games, every creator aims to immerse players. Animations, designs, exciting story plots, and much more have proven helpful in improving flat-screen gaming, but VR still trumps for multiple reasons. Moving online casinos from 2D to 3D introduces something new to iGaming.
With virtual reality, players can move and interact with a virtual space, making gaming much more realistic. VR is only a new introduction to iGaming, yet it is gaining attention because of the experience it offers. You can expect more gamblers to invest in VR hardware for recreational use.
Casinos may Lower House Edges
A house edge is a percentage that shows how much a gambling company gets to keep after payouts. For example, a house advantage of 5% means a casino is expected to make a $2,500 profit on a casino game for every $50,000 total bet placed. Classic casino games have fixed edges, but slots can be set to whatever the developer wants.
The house edge is the amount the casino charges for its services. Some slots can have a house edge of up to 20% because casinos have to make that much to pay their staff and other operational costs. However, the blockchain reduces operational costs for crypto casinos, which might offer cheaper games to attract players to their business.
There Will be an Increased Use of NFTs in Gambling
NFTs cannot be placed as bets because they are only digital assets with value, not currencies. However, that doesn’t mean they have no role in blockchain gaming since they can be used as special rewards. Slots can be designed to transfer ownership of NFTs if a user lands a unique combination between the pay lines. It is a great way to increase user engagement while helping to diversify their portfolios.
More Casinos Will Transform into Multi-Chain Platforms
Crypto gambling is the ideal option for gamblers, but it is not perfect yet. Blockchains are split into networks, so tokens have the same values on all networks, but there might be different transaction fees. Communications between blockchains are also very limited in our current crypto industry.
The primary solution is for blockchains to communicate with each other, hence interoperability. However, online casinos cannot enact that as they have no control over the blockchain. They can only offer as many networks as possible, evolving into multi-chain platforms or incorporating technologies like Bitkeep that allow users to access multiple wallets from the same interface.
Security Measures will be Enhanced
Cybersecurity is necessary for every online business, not just blockchain and associated industries. The blockchain is entirely secure, but cybercriminals continually invest in tools in desperate bids to beat the system. If there are not enough security measures, both casinos and players can lose their money to cybercriminals. It starts with improving the security of user data and ensuring a secure connection between users and their servers.
Disclaimer: This is a paid post and should not be treated as news/advice.
