The way that consumers use the internet nowadays is a major factor in the decision to design crypto gambling platforms and for existing brands to support coins and tokens as betting assets. As players are now beginning to prioritize speed and security in their transactions, which blockchain offers at an unrivaled level, it can be imperative for platforms to upgrade.
Financial stats for the crypto gambling industry
The first crypto-based gambling websites were introduced in 2011 and now reach hundreds of thousands daily. The wider industry has seen 4% of all gambling endeavors being dedicated to cryptocurrencies, and the U.S. market has seen a rise in the niche of 536.96% in the last couple of years.
The good news is that growth doesn’t seem to be slowing. In fact, estimates show that the online gambling market could reach $97.69 billion by 2025. This means that the Compound Annual Growth Rate (CAGR) since inception is 11.31%.
Why gamble with Bitcoin online?
Of course, the coin of choice is industry giant Bitcoin, which is currently dominating 78.5% of all transactions in the market. Ethereum is next in line, but as it makes up just 9%, the gap is rather wide (and it’s not likely to catch up in the next few years).
These numbers are positive for anyone hoping to get into crypto gambling, as any platform that supports digital currencies is more likely to support Bitcoin coin than any other. Many existing platforms are allowing exchanges from other currencies into Bitcoin too, to make their services even more accessible.
The advantages of crypto gambling at a glance
The gambling industry is one of the biggest sectors adopting technological advancements to keep providing a high level of service to their audiences. With the American Gaming Association (AGA) stating that it’s worth an astounding $261 billion, it’s no wonder that more and more websites are turning to the latest digital trends to improve their chances of securing the favor of players. As a result, the Bitcoin casino is becoming the next logical choice to do just that.
There are a host of advantages when it comes to gambling with crypto, so here’s a quick run-down:
- Fast deposits and withdrawals (some websites perform these in around 10 minutes)
- Multiple payment methods
- Unrivaled levels of security on the blockchain and with SSL encryption
- Support for all major cryptocurrencies
- A host of games and player incentives
- An open-source, decentralized platform
- Mobile compatibility
- Secure verification on transactions
Studies suggest that around 50% of all Bitcoin transactions are now undertaken via online gambling portals, so this is also something worth thinking about.
The risks associated with crypto gambling
One thing that concerns insiders is that as the majority of crypto bets are made using Bitcoin, the online industry will see fluctuations in value in accordance with how Bitcoin is faring on the financial market. Cryptocurrency is volatile in nature and it can be hard to predict when prices will both rise and fall, and this could have a knock-on effect in the online gambling niche. Other risks are:
- As success grows, so too does the level of scams and cyber crimes associated with online gambling
- There can be restrictions posed, and these will vary by state in the US, so gamblers must be aware of local laws before gambling online
- Volatility could potentially lower trust and therefore demand, so longevity isn’t guaranteed
- Winnings and losses will be subject to the value of the coin of choice, so withdrawing at the wrong time could impact gains
- Right now, reputable platforms are still rather limited, so choices aren’t as varied as they are with traditional online gambling sites
With all of the above in mind, you may be wondering why anyone would choose to gamble using cryptocurrency. Well, the reality is that there are risks when betting of any kind is involved. The growth seen in recent years offers some worthwhile insight into trends and the niche’s overall potential, and so far, the statistics are showing that the pros outweigh the cons.
As the niche is still in its infancy, players only have the current information to hand to go on when making the decision to enter the crypto gambling game. The risks may seem quite high, but as experts are predicting the price of Bitcoin to reach $100K in the next couple of years, there is potential to move forward. As popularity grows, so too does trust – and this will continue to propel the market.