Will Bitcoin's Price Drop Affect the iGaming Industry's Pivot Towards Blockchain?

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On 22 June 2021, Bitcoin’s price dropped below USD30,000 for the first time since January 2021. Bitcoin has seen a steady drop since its high of more than USD60,000 in April. The drop follows an ongoing pushback on cryptocurrency from China, an increase in short-term investors, the increasing success of meme coins like Dogecoin, and even a tweet from Elon Musk on 12 May 2021 in which he announced that Tesla has suspended purchases using Bitcoin amid concerns about the use of fossil fuels in mining the cryptocurrency.

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Whilst Bitcoin is a volatile investment, the cryptocurrency is already mainstream, with many online casinos now accepting a range of different cryptocurrencies. The main reason the iGaming industry is using blockchain and why this technology is making headlines in gambling news is that it provides transparency in database transactions. Blockchain technology also allows for anonymity and confidence in the iGaming operator.

Using Bitcoin for gaming

The number of people who wish to gamble using cryptocurrencies is quite small since it is a relatively new concept that generally attracts a younger demographic or those who are tech-savvy.  Most people who like iGaming do so for entertainment and have less concern about winning or losing money. For these people, cryptocurrencies are simply another form of transaction and if they are looking to invest in Bitcoin or other popular currencies, these will be held for years to hopefully see a good return.

Building trust

Whilst the value of Bitcoin can fluctuate widely, the blockchain technology that creates it is a huge benefit to the iGaming industry. Blockchain allows players to see precisely how their transactions are processed which means they can check the return to player percentage (RTP), even if it is not published. Rather than assuming a site is a scam if the RTP is not known, players can check for themselves how trustworthy the site is.

Complete Anonymity

To register a Bitcoin or other crypto iGaming account means that players do not need to provide any personal information at all, in contrast to opening a fiat account. This level of anonymity is the most significant advantage for many in the iGaming world, Great anonymity is the main advantage that bitcoin online casinos offer their customers since players currently only need to provide an email address to open an account.

Safer finances

Players are advised to use well-known gambling sites or those that are audited by a regulatory authority to reduce the risk of being scammed whether they use crypto or fiat currencies.  Unscrupulous sites have stood accused of attempting to steal funds or refusing to pay out any winnings, but with crypto-based gambling sites, the transparency of currencies like Bitcoin and the use of blockchain means that players can track and trace their funds. However, if the site is unlicensed, players can still be scammed since they can deposit crypto and then be unable to play.

Continuing investment

Investment is ongoing in the iGaming industry to increase the use of blockchain in the sector so that it becomes even more mainstream. Already, some iGaming sites have an infrastructure that is based solely on blockchain payments since the security and anonymity it offers to players has made it very popular.

In conclusion

Bitcoin offers the most transparent way to make payments in the iGaming industry. There are flexible limits offered at online cryptocurrency gaming and casino sites plus extremely low fees which have drawn in a growing number of new players. Access to winnings is more reliable using Bitcoin than any other fiat system, mostly because Bitcoin can never be forged which means an account cannot be blocked. Bitcoin also allows players to enjoy iGaming even if they are resident in regions where gambling is strictly illegal. For these reasons, the price drop affecting Bitcoin will not affect the iGaming industry.

 

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