What is driving the rise in the popularity of bitcoin casinos?
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Gambling sites that accept Bitcoin allow players to deposit and withdraw winnings using Bitcoin. Bitcoin, denoted as BTC, is a decentralized digital currency used to buy goods and services. In addition, it can be used as an investment. Gambling sites that take Bitcoin offer advantages like anonymity, security, low transaction fees, and fast deposits/withdrawals. However, they can also present risks such as volatility, less regulation, and irreversible transactions. Over the years, the popularity of Bitcoin has increased, with studies estimating that an average of 2.74% of people own the digital currency globally. More people continue to embrace it as a viable alternative to traditional currencies as it offers many advantages. In this article, we will look into the factors that have led to the rise of gambling sites that accept Bitcoin, the currency's popularity, and factors that might affect its price. Let’s dive in.
What is Driving The Rise in the Popularity of Bitcoin Casinos?
The increasing value and acceptance of Bitcoin in mainstream markets have made it more appealing as a form of currency in casinos. Other factors that have led to the popularity of gambling sites that accept Bitcoin are:
Global Accessibility
Bitcoin's decentralized nature makes it accessible to people anywhere. For example, the number of cryptocurrency exchanges has risen, making buying, selling, and trading Bitcoin easier. Bitcoin ATMs have become widespread globally. According to a 2022 survey by Statista, there were an estimated 42,850 Bitcoin ATMs worldwide. This number is expected to grow to 150,000 by 2024.
Additionally, apps such as Binance and Coinbase enable easy transactions and storage of the decentralized currency, increasing accessibility for users who may not have traditional banking access. This global accessibility has increased Bitcoin popularity as well as gambling sites that accept Bitcoin casinos. i.e, It is estimated that over 3,000 Bitcoin casinos are operating worldwide.
The Increasing Media Attention of Bitcoin
The media frequently covers Bitcoin, given its significance as the first and most well-known cryptocurrency. The currency could disrupt the traditional financial system as it provides a new way to store and transfer value. This makes it a threat to the institutions and is a topic of interest for journalists who cover the financial industry.
Therefore, broadcasting varies from financial analysis and market trends to discussions on regulation and broader economic systems. Because of its volatility, dramatic increases or drops in price often garner extensive media attention. Some news are positive, touting it as the future of money. While others are negative, warning of its risks, such as its volatility and potential for use in illegal activities.
In addition, Tesla CEO Elon Musk has talked about cryptocurrencies from time to time. His influence has increased the coverage of digital currencies, partially influencing the popularity of Bitcoin. This attention has led to more people becoming interested in Bitcoin, including those keen on gambling. In any case, anyone interested in popular bitcoin casinos among Americans can find information about them on gambling sites like BCT.
Educational Resources
The availability of educational resources such as blogs, podcasts, and videos has also helped increase Bitcoin popularity and its potential uses. These resources have taught people how to use this virtual currency, including buying, selling, and storing it. Thus, this has made it easier for people to start gambling with it.
Similarly, educational resources have debunked myths, such as it is too volatile to be trusted. I.e., resources on security teach users about the security aspects of Bitcoin, making them more confident about using it in a casino setting. Hence, this has helped to create a more positive perception of the currency, which has made it more attractive to gamblers.
Fast and Secure Transactions
Bitcoin transactions are typically processed in minutes. This is much faster than traditional bank transfers, which take 3-5 business days. They also take a shorter time because the crypto does not rely on third-party processors like banks. A network of computers verifies the transactions. As a result, this enhances the user experience by reducing waiting times.
Consequently, BTC is more secure than traditional bank transfers as it uses cryptographic algorithms, which make transactions secure. This aspect makes BTC transactions more resistant to fraud and hacking, appealing to users concerned about fraud or data theft.
The combination of fast and secure transactions has increased the popularity of Bitcoin, making it a popular choice for gambling. This is because gamblers want to be able to deposit and withdraw funds quickly and securely. Gambling sites that accept Bitcoin offer this convenience, thus increasing their popularity.
Anonymity
Gambling sites that take Bitcoin offer more anonymity than traditional casinos. This is because transactions can be conducted without revealing personal information, as Bitcoin addresses do not necessarily have to be linked to identities. This anonymity allows players to gamble without leaving a trace of their financial activities, which suits players who gamble in secrecy.
However, picking reputable and licensed casinos is important for maximum security. Similarly, always read the privacy policy and terms of service before engaging with any platform to understand how much anonymity is actually provided.
Lower Fees
With inflation in many parts of the world, everyone is doing their best to be cost-effective. Cryptocurrency transactions come in handy since they have lower fees than traditional payment methods such as credit/ debit cards and bank transfers. The decentralized currency operates on a decentralized network, eliminating the need for intermediaries like banks, which typically charge fees. As a result, the lower fees have increased the popularity of Bitcoin as a payment method.
While many players prefer gambling sites that take Bitcoin, it's important to note that network congestion or the casino's fee structure could impact the overall cost; therefore, it is important for gamblers to always check the fee policies of the specific casino you are using.
Provably Fair Games
Many Bitcoin casinos offer provably fair games. These games use cryptographic algorithms to ensure the results are random and fair for games like slots or roulette. This means that players can verify the games' fairness without trusting the casino.
What happens is that before the bet is placed, the casino provides a hashed (encrypted) set of data relevant to the game's outcome. After the game ends, the player can use the provided hash and algorithm to verify that the outcome was indeed random and fair. This system adds a layer of transparency not usually available in traditional online casinos.
Bonuses and Promotions
Bitcoin casino bonuses are often perceived to be more generous than traditional casino bonuses. This is because Bitcoin's decentralized nature and lower transaction fees may allow operators to offer more lucrative rewards.
As Bitcoin sites that accept Bitcoin are relatively new, they often provide higher bonuses to attract players away from well-established traditional casinos. In addition, generous bonuses help them build a customer base quickly, given the cryptocurrency's novelty and the public's growing interest.
However, it's essential to note that bonuses usually come with terms and conditions like wagering requirements that players should carefully read before claiming. Similarly, players should consider factors affecting Bitcoin prices, like supply, demand, and media coverage.
Factors That Might Affect Bitcoin Price
The price of Bitcoin is determined by supply and demand. If the demand exceeds the supply, the price will increase. If the supply exceeds the demand, the price will decrease. Additionally, If there is a lot of positive media coverage, it could increase Bitcoin popularity and vice versa. However, we have discussed recent circumstances that might affect Bitcoin price.
Elon Musk Introducing Crypto Tokens into X Platform
Since Elon Musk rebranded Twitter to X, there have been speculations that he could introduce crypto tokens into the platform. With X’s transition into an everything app, it is believed that the crypto tokens will be used as a form of payment for reward users who create content and engage with the platform. There have also been growing concerns about questionable digital currencies associated with both X and Twitter.
However, in August 2023, the Tesla CEO made it clear that he has no plans of launching any crypto tokens, stating, “And we never will.” His comments came after a post by DogeDesigner, a prominent figure in the crypto community, cautioning people against potential scams linked to tokens like X (X) and TwitterDAO (TWITTER) that falsely claim affiliations with the social media giant.
Elon has a large influence in the crypto world, as his tweets about digital currencies cause significant price fluctuations. For example, In 2021, Musk tweeted that Tesla would accept Bitcoin as payment for its cars. His statement increased the popularity of Bitcoin and caused the price to surge by 17%. However, Musk later reversed course and said that Tesla would no longer accept the decentralized currency due to environmental concerns. This caused the price to drop by 15%.
Therefore, his influence could sway investor and trader behavior positively or negatively. Introducing a crypto token could lead to increased adoption of cryptocurrencies by other businesses and consumers. It could also increase the price of the involved cryptos. On the other hand, traders and investors who follow Musk's opinions may decide to sell or avoid buying certain tokens, affecting trading volumes and prices.
Nonetheless, the crypto community should remain attentive to any forthcoming developments that could shape the future of cryptocurrencies within the X platform.
The SEC’s Approval of BlackRock’s ETF
BlackRock, the world's largest asset manager, filed for a spot Bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). If approved, the ETF will provide investors with straightforward, easy-to-trade funds that directly track BTC's current price rather than futures contracts' prices.Similarly, the agreement would help control fraud and manipulation by establishing a mechanism to track trading, clearing activity, and customer identity.
The SEC is yet to approve a spot Bitcoin ETF. It has previously rejected several applications for spot Bitcoin ETFs, citing market manipulation and investor protection concerns. According to Forbes, the Securities and Exchange Commission reportedly does not think BlackRock’s “surveillance-sharing agreement” proposal is sufficiently detailed. An unidentified SEC representative allegedly said the proposal lacks specifics.
If BlackRock's ETF is approved, it would be a significant milestone for cryptocurrency. It would make it easier for investors to buy and sell Bitcoin and help legitimize the cryptocurrency as an investment asset.
The president and chief investment officer of Castle Fund, Peter Eberle, was quoted saying that it would breathe new life into Bitcoin and cryptocurrency markets and end the crypto winter (prolonged period of pricing weakness in the cryptocurrency market)
SEC’s approval would add a layer of regulatory legitimacy to BTC, which could encourage more institutional and retail investors to participate. It would also increase the popularity of Bitcoin, demand and provide liquidity to the Bitcoin market, making it easier for investors to buy and sell the crypto. Most importantly, it would increase liquidity, help reduce volatility, and stabilize its market in the long run.
Ripples Partial Victory against SEC
Founded in 2012, Ripple Labs is a company that develops the XRP cryptocurrency. In December 2020, the SEC sued Ripple Labs, alleging the company raised approximately $600 million by selling XRP tokens in unregistered security offerings to investors in the United States and worldwide.
In addition, the suit alleged that the company had failed to register its XRP offers and sales or meet any exemption from registration in violation of the federal securities laws’ registration restrictions.
On the other hand, Ripple Labs denied the SEC's allegations and argued that XRP tokens were not securities. It insisted that XRP tokens were a currency, not an investment, and were not subject to securities laws.
On July 13, 2023, a federal judge granted Ripple a partial victory, ruling that the XRP tokens Ripple sold to investors were not securities. However, the SEC also managed to notch a victory of its own, as the federal judge ruled that XRP is a security when sold to institutional investors, as it met the conditions set in the Howey Test. That day, the price of XRP rose from $0.45 to $0.61.
This partial win for Ripple could make it more difficult for the SEC to regulate cryptocurrencies in the future. Alternatively, it could provide much-needed clarity on how digital assets like XRP are categorized, potentially leading to a more precise regulatory framework for the crypto industry.
On the other hand, the favorable ruling restored or boosted investor confidence in XRP and similar cryptocurrencies, which could lead to price stability or growth. The results could also set a legal precedent that benefits other cryptocurrencies facing similar regulatory scrutiny.
The Upcoming Bitcoin Halving
Bitcoin halving is an event that occurs approximately every four years, or specifically every 210,000 blocks, in the Bitcoin network. When a halving occurs, miners' reward for verifying transactions is cut in half. This means the total number of Bitcoins mined is also cut in half.
The halving mechanism controls the supply of bitcoins, mimicking the scarcity and deflationary features of precious metals like gold. It ensures that only 21 million bitcoins will ever exist. The next Bitcoin halving is expected to occur in April 2024, when the reward for mining a block will be cut from 6.25 BTC to 3.125 BTC. The system is expected to continue until roughly 2140 when all Bitcoin is mined.
The first Bitcoin halving occurred in November 2012, when the block mining reward was cut from 50 to 25 BTC. The second halving occurred in July 2016, when the reward was cut from 25 to 12.5 BTC. The third halving occurred on May 11, 2020, when the reward was cut from 12.5 to 6.25 BTC.
A price increase has historically followed the Bitcoin halving. This is because the halving reduces the supply of Bitcoin, which can lead to increased demand and higher prices. For example, the price on the halving day in 2020 was $8821.42, and the price 150 days later was $10,943.00. However, the only way to be sure of the effect of the halving is to wait until April 2024, but currently, it has also increased the popularity of Bitcoin.
How Popular is Bitcoin?
There are an estimated 420 million crypto users worldwide as of 2023. However, Bitcoin is the number one ranked crypto in the world. It is estimated that the number of Bitcoin owners went from 183 million in January to 219 million in December, according to a study by crypto.com.
Similarly, according to Zippia, 65% of cryptocurrency users own BTC. Its market cap was over $457 billion as of February 2023, and its price has increased by over 46,449,400% since 2010.
It is estimated that more than 460 million Bitcoin wallet addresses have been created so far. The majority are inactive, with only an average of 42.3 million active addresses. This means they have been used to send or receive Bitcoin within 24 hours. Additionally, these addresses have different amounts of money, from $1 to $10,000 worth of BTC.
The popularity of Bitcoin has been increasing over the years and is expected to grow more. This might be because it is not subject to government control. It is also seen as a more secure way to store and transfer money. Most importantly, it is a convenient way to pay for goods and services since payments can be made quickly and easily without needing a third party.
What Percentage of People Own Bitcoin?
As mentioned above, 219 million people own Bitcoin globally. With the global population at 8 billion, this makes the percentage of Bitcoin owners in the world 2.74%.
What Does the Future of Bitcoin Look Like, and How Does It Affect Gambling Sites?
The future of Bitcoin is unpredictable; however, several factors could affect its price and adoption. For example, If governments ban or restrict the use of this digital currency, this could decrease its demand and price. However, if it regulates it in a way that supports its growth, this could lead to increased adoption.
Improvements like the Lightning Network could make transactions faster and cheaper, broadening the currency’s use in gambling platforms and other businesses. Increasing participation by institutional investors could lead to price stability and growth. Additionally, if people believe this decentralized currency is a legitimate and safe investment, this could increase the popularity of Bitcoin and its adoption.
Overall, the future of Bitcoin is uncertain, but it has the potential to have a significant impact on the gambling industry. If it becomes more widely adopted, it could make Bitcoin gambling more convenient and accessible. It could also lead to the development of a clear regulatory framework in the industry.
Conclusion
Some of the factors that have contributed to the popularity of Bitcoin gambling sites are global accessibility of the virtual currency and the availability of educational resources, teaching people how it works, as well as debunking its myths. Media attention on Bitcoin or the influence of prominent people like Elon Musk has also made people adopt it and other cryptos. In addition, gambling sites that accept Bitcoin offer anonymity, security, lower fees, and fast transactions, unlike traditional casinos. As a result, people tend to prefer these gambling platforms. According to trends, more people are likely to own Bitcoin in the future. For example, Bitcoin popularity has increased tremendously, with the number of Bitcoin owners moving from 183 million in January to 219 million in 2022. This makes the percentage of people who own Bitcoin 2.74%. The future of the currency is uncertain, but the number of crypto owners and gambling sites is expected to grow.
This article was written in cooperation with MMT
