How the crypto market affects the iGaming industry
Have you ever thought about how the cryptocurrency market influences your preferred online gambling games? This virtual form of currency, introduced in 2009, has taken over the gaming industry with its potential to make deposits and withdrawals faster and more securely without any associated cost.
As cryptos continue advancing on their path, they are also transforming all aspects of iGaming. Below are all the details regarding this meteoric phenomenon that is revolutionizing digital casino entertainment as we know it.
The Emergence of Crypto-Based Online Casinos
As the crypto revolution doesn’t seem to be stopping anytime soon, more online operators like Joe Fortune Bitcoin Casino are seeing its potential and various benefits. This is why a lot of iGaming sites choose specifically Bitcoin as their only acceptable form of payment or introduce other digital coins such as Ethereum, Litecoin, Tron, Ripple, etc.
There are several reasons why these casinos are gaining in popularity:
- Anonymity. Bitcoin payments don’t require players to divulge any private or personal details, making it a great way for gamers who value their privacy. As crypto gambling sites don’t save the sensitive financial information of their players this also adds an extra layer of security.
- Speed & lower fees. This is one advantage that attracted many casino customers in the first place since cryptocurrencies allow instant transfers with relatively low fees compared to traditional online payment methods such as Visa and Mastercard credit/debit cards or e-wallets like PayPal.
- Global accessibility. Bitcoin transactions lack geographical limitations because cryptocurrency sends across jurisdictional boundaries. It makes it a really attractive choice for those who live far away or are residing in countries whose legal system restricts regular iGaming activities.
- Provably fair games. Online casinos using cryptos tend to offer provable fairness games meaning that gamers can verify whether results were generated randomly after each bet by comparing server seed hashes (which must be accessible). That being said, playing on these platforms allows members peace of mind knowing they will get fair outcomes based on the implemented algorithms.
While these features make crypto-based gaming sites attractive, their novelty means that the selection of games is limited and, in many cases, still doesn’t offer top titles such as live dealer roulette or slots jackpot.
However, there are more and more sites focused on crypto gambling that come with a wider range of choices.
Blockchain-Based Gaming Platforms
We have discussed digital coins influencing the industry, but blockchain technology is also entering iGaming. Several platforms use this innovation to focus on games based on the distributed ledger for an enhanced gaming experience with numerous features such as immutable transactions, increased transparency for users, and more secure data records.
The most significant advantages are:
- Transparency. As blockchain processing is transparent with regard to asset verification and authentication of all the entities involved in a transaction (from both sides), gamers can rest assured that everything takes place in a secure and transparent manner.
- Ownership & tradeability. Blockchain-based platforms such as popular Ethereum casinos offer their players ownership of in-game assets (avatars, weapons, etc) which can be further exchanged and traded privately or sold on the open market.
- Reduced fraud. As all of the members’ interaction data and proof are stored on publicly distributed ledgers, it makes it impossible to edit them after a bet has been placed or money deposited in an account, reducing cases of fraudulent activities almost completely.
Many things that seemed impossible in the past can now be achieved thanks to iGaming blockchain developments. We can expect to see huge technological advances in the coming years using computer processing power, AI, and machine learning, so users can have access to never-seen experiences.
The Adoption of Tokenization and Initial Coin Offerings (ICOs) in iGaming
Tokenization and the issuance of ICOs have gained immense traction in various industries. As part of this new ecosystem, iGaming companies have started recognizing its potential by issuing their own tokens.
Nowadays, it’s not uncommon to come across a new online casino created with an Initial Coin Offering (ICO). These sites issue their coins and insist on exclusive transactions made in those cryptos. Such casinos have the benefit for operators since they can easily monetize their platform through coin sales as well as increased customer loyalty via buybacks and other buyer rewards.
The main advantage, from a player’s point of view, is that these tokens are liquid and aren’t tied to any third-party service or payment processor. This basically means one could easily convert their coins into different cryptos like Bitcoin, Ethereum, etc., or even cash them out to their bank account.
For gaming platforms, it means access to a global pool of investors – an advantage that could potentially lead to more funds and yields for projects instead of relying on venture capitalists or angel investors. For instance, the most successful ICOs can raise millions in minutes.
Conclusion
The crypto market has significantly impacted the iGaming industry, from the emergence of crypto-based online casinos to integrating cryptocurrencies into traditional iGaming platforms. Developing blockchain-based gaming platforms and adopting tokenization and ICOs for fundraising have also shaped the industry’s landscape.
While regulatory challenges remain, the potential for further innovation and growth in the iGaming sector through the continued influence of the crypto market is undeniable.
