Cryptocurrency Gambling – Which Crypto to Use for Different Types of Online Gambling
Cryptocurrencies and online gambling – an argument that perhaps has all of the similarities of a game of chess.
It is getting hard to imagine the days when in order to gamble, in the traditional sense of the word, was to insert coins into a slot machine to win a certain jackpot prize. Currency as we know it has, without a doubt, evolved.
What history has taught us is that it comes in all shapes and sizes, not all round, five-sided, even star-shaped. The latest ones, though, in some circles, are considered rock stars, even of Beatles quality, though there is yet to be a cryptocurrency labeled "Money, that's what I want."
In online gambling, however, it is entirely possible to find slot games with a derivation of gold, cash, or any kind of legal tender; it appears that now, something perhaps resembling the real-life equivalent of fairy dust can add the magic touch.
Cryptocurrency is perhaps one of the most 'in-vogue' words right now; certainly, those who have some form of social media account are keen to join the 'cool kids club' like getting picked first at school football, regardless of whether or not they understand it.
Online gambling, in comparison, meanwhile, has become like the castle on a chessboard; it moves into plenty of verticals with agility to boot.
It sparks a debate that could well last for the next however many years until the 'cooler kid on the block' dominate the conversation - the best cryptocurrencies for the different types of online gambling or even iGaming platforms.
Development and Evolution of Crypto
Cryptocurrencies - essentially digital currencies were developed as a serious alternative source of money, just like the euro, dollar, or sterling, with the intention that they could (eventually) be used everywhere due to a secure technological platform called the blockchain.
As has been usual with many potentially valuable technological developments, the online gambling industry has often adopted these as a bid to increase revenue, arguably smartphone development having started it all.
Cryptocurrency is merely the latest, though potentially game-changing development over the last couple of years, and only now does it appear to be coming to the forefront.
Having started with just one cryptocurrency - Bitcoin in 2011, it took a while for many to realize its full potential and begin investing - once they did, those few who were first were millionaires at least 10 times over. As it turns out, crypto was a safer bet than playing a progressive jackpot.
Since newer currencies have followed or at least attempted to follow the same trajectory, many are now available, and some are reaching the same popularity levels. It does perhaps help to explain why there are so many nuances related to the decision-making process for determining which ones best relate to online gambling.
Bitcoin in a Bull Market
The original cryptocurrency and the most popular, there are many reasons why Bitcoin would be a smart choice when it comes to online gambling. Indeed, most online casinos that offer this as a form of banking report their customer's experience to be one of the best.
Compared to most other cryptocurrencies, Bitcoin's value can fluctuate dramatically, meaning that when it comes to cashing out casino winnings, customers can find that the value is considerably higher than it was when they deposited.
Bitcoin gambling would suit those games that have a particularly high RTP (Return-to-Player) rate, such as poker or video poker. The latter can have a rate of over 99% for certain games. Typically, though, players find that this game can be quite lucrative, which means that it is perfectly set up to cater to Bitcoin gambling, especially when considering that the price can increase significantly.
One of the advantages of playing poker, especially in an online tournament, is that these games can usually take a long duration - often lasting for hours; plenty of time for the price of Bitcoin to change quite dramatically. Of course, this can also decrease in value, in the same way that the dollar might change against the euro. The speed at which Bitcoin changes, though, means that if the value is less than it was, then there is no harm in leaving your winnings in your casino account until you find that the price of Bitcoin has gone up again significantly.
Types of gambling with Bitcoin to avoid would likely be the majority (if not all) slot games - the returns are typically low unless you hit the jackpot, with the odds of this being slim, while you are also likely to gamble a lot upfront to risk earning only a small profit. Particularly if the slot has a high volatility rate.
For those who are in the know about the industry and who follow the movement intensively, it may also be worth gaining some understanding of online casino games in order to really maximize profits. Some people do this relatively successfully, while sites are recognizing the uplift in the number of participants preferring to make the most Bitcoin for their online gambling experience.
Enhancements in Ethereum
For many sophisticated cryptocurrency investors, Ethereum is considered to have many advantages when it comes to online gambling, though, like Bitcoin, a case can be made for using it in certain verticals.
The brainchild of Vitalik Buterin, Ethereum has emerged as a major rival to Bitcoin and really started to gain traction in 2018. Online casinos began to realize both the potency and popularity of this, and there is now a substantial number where players can enjoy their online gambling experience using Ethereum.
Based on the fact that one of the main reasons for the success of an online casino is to garner trust from its customers, offering more payment methods that are secure and reliable is one way to do this.
Ethereum is one of the reasons for the exponential increase in cryptocurrency gambling - for many, this is considered to be 'cooler' than Bitcoin, despite having, to the naked eye at least, all of the similar advantages. Running off a decentralized finance (DeFi) platform, like Bitcoin, though with a number of differences in the coding, Ethereum transactions are processed in block time, which means that they take seconds compared to minutes for its older brother.
For online gamblers, speed and efficiency are two of the most important elements, which means that slot games or jackpot slots could be the ideal form of gambling with Ethereum. This is especially the case because if players are chasing a large potential payout, spending too much time waiting for a deposit to be processed could jeopardize their chances of this, making Ethereum much more convenient.
With Ethereum moving to a new cryptocurrency consensus mechanism called Proof of Stake (POS), it will mean that its transactions become even faster because new entries onto the blockchain (which creates blocks) are validated with more efficiency.
Because of this improvement to infrastructure, it is likely that online casinos will recognize the benefits that this provides for players and, as a result, be able to adequately explain these players wishing to use cryptocurrency for their gambling experience.
A Case for Cardano?
Perhaps one of the more sophisticated alternative cryptocurrencies, Cardano (ADA), was created by Ethereum co-founder Charles Hoskinson in 2017 with the objective of principally offering cheaper transactions to its userbase.
Presenting a number of benefits for the online gambling industry, this could certainly be one for the future, especially with the developments that are in the pipeline that could only make it a pertinent choice for gamblers.
It is forecast that the Cardano network will scale significantly over the next few years, with a major focus on making sure that the infrastructure is particularly robust by implementing Hydra technology which will improve network performance. Over the last decade, we have seen an emphasis on technological diversity in the online gambling industry, so the fact that this is being applied to a cryptocurrency that is conducive to this activity is only a good thing. Scientists have predicted that the integration of the Hydra technology will lead to the framework being able to process one million Cardano transactions per second at lightning speeds.
For an industry such as online gambling, this may mean that Cardano becomes the most popular cryptocurrency for iGaming. It would almost mirror the speeds at which odds in live betting change, which requires customers to be able to deposit funds quickly before they alter according to events.
The Future Development of Cryptocurrencies for the Online Gambling Industry
One thing certainly appears to be for sure - cryptocurrency can have a significant effect on the online gambling industry, and already we are starting to see many operators implementing this as a payment method. As illustrated above, the three main cryptocurrencies can serve their purpose well for particular modes of gambling due to the various advantages and benefits that they have.
What is also going to provide greater clarity in terms of development - even over the next couple of years, is how quickly new technology will emerge and the possibilities that lie within it.
There is no doubt that AI (Artificial Intelligence), in addition to machine learning, VR (Virtual Reality), AR (Augmented Reality), gamification, and also even robotics may play a part in the development and growth of the online gambling industry, with it even possible that FinTech and cryptocurrency can be integrated into any new products that emerge from this.
However, what we may also see is that more and more new cryptocurrencies are developed especially for the online gambling industry, especially if this becomes even more popular. Just like chess, the market has become highly strategic. Rook to bishop four.