The Rise of Crypto Casinos in 2021 and Why It Matters
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The global online gambling industry recorded a value of $53.7 billion in 2019. According to data from Grand View Research, the industry is expected to see a compound annual growth rate (CAGR) of 11.5% from 2020 through 2027.
This figure has slightly increased due to the global pandemic. In 2020, the online gambling space recorded a trading value of $72.02 billion with an adjusted CAGR market forecast of 12%. This data puts the booming industry at $112.09 billion by the year 2025.
These figures are staggering, and the contributing factor has been the use of cryptocurrencies by casinos. The crypto space has seen exponential growth after bellwether Bitcoin skyrocketed to a total market cap of $1 trillion and pushed the crypto market to a whopping $2.72 trillion in locked value.
The increased interest in cryptocurrencies has led to several online gambling platforms or casinos accepting these digital currencies as a form of payment method. This development has led to the term ‘crypto casinos’ emerging in the gambling industry.
This article highlights how the crypto casino has surged by leveraging blockchain technology and the best betting sites that you can take advantage of.
Online Casinos Leveraging Crypto’s Intrinsic Capabilities
The decentralised nature of cryptocurrencies has increased the use of digital assets for gambling, especially in areas where the activity is not legal.
The anonymous values of crypto enable players in prohibited regions to fund their accounts and play in these crypto casinos without fear of restriction.
Crypto casinos do not have the real-world identity of their players as wallet addresses identify all transactions. Unless players give their details, no one will have any idea who they are. A few privacy-centric coins like Monero and Zcash makes it virtually impossible to identify a player as it randomly mixes crypto transactions making them untraceable. These measures are a boon for many players seeking anonymity.
Another strength that has increased the popularity of crypto casinos is that they do not depend on third-party payment solutions like Visa, Mastercard, PayPal, thereby removing any chance of failure in payments and other transactions.
Crypto transactions are also less costly than other means of payment. Added to these, the speed of transactions in crypto casinos is almost instantaneous; they are reputably faster than the traditional payment rails we currently have.
For instance, protocols like Solana process transactions at 50,000 more than 100x that of Visa or Mastercard. The lightning speed of financial settlements makes crypto casinos a hotspot for many who want quick and seamless transactions.
The use of blockchain technology in casinos ensures that no single authority has a majority stake in how a game plays out, and this feature makes crypto casinos fairer than traditional online gambling platforms.
Players can easily verify if the gaming results are randomised, giving crypto casinos the transparent edge.
The ever-growing blockchain technology space indicates that crypto casinos could be the next generation of online gambling.
The Misses of Crypto Casinos
Despite the huge benefits of crypto casinos, there are a few grey areas you should be aware of. One is that cryptocurrencies are still facing an uphill task in terms of adoption. This year has been crucial for the virtual assets, but many people are still in the dark about their existence.
Another factor is that cryptocurrencies are highly volatile assets. Bitcoin has been known to shoot up 20% in 24 hours and shed more in the next, making it an unstable payment method.
One other caution is that cryptocurrencies require responsibilities from their owner; there are no custodial services available for users as they are decentralised by nature. So, if you intend to own crypto assets, you must be prepared to handle the inherent task of safeguarding your funds, as losing your private key could make it difficult to access your funds.
However, crypto casinos are exciting concepts, and many people are gradually opening up to the idea. The industry is likely to gain relevance as the crypto space grows.
