According to a report by Statista, there are over 47 million crypto wallets in operation as of May 2020. Out of those, Bitcoin is the most popular and valuable digital currency on the internet.
Considering this, if online gambling operators do not incorporate cryptocurrencies in their payment options, they might be leaving a lot of money untapped. Even though trading and speculation were the main uses for cryptocurrency at the beginning of the year, its uses have diversified.
Many industries are constantly adapting and adding cryptocurrencies on popular demand.
The popularity of crypto gambling can be mirrored with the spread of online casinos. The very first online casino, Intercasino, was launched in 1996, and since then, the online casino industry has not looked back.
While it is still used primarily for trading and people wish to earn profit by selling bitcoin to someone else, cryptocurrencies have found a favourite spot in the heart of gambling enthusiasts. Cryptocurrency payments happen within minutes as opposed to overseas payments by financial institutions that take time and have high processing fees.
Cryptocurrency can be described as a decentralised digital or virtual currency that uses cryptography for security, making it extremely difficult to counterfeit. Over the past couple of years, the technology has been gaining popularity, and new use cases are coming up for these currencies. While Indian authorities have warned users to be wary of investing in these digital currencies, unorthodox Indians have taken a leap of faith to do so. It has led to a lot of startups mushrooming in the economy of the type – aggregators, coin miners or exchanges. The past has seen the government actively supporting innovative tech ventures in the past. Extending the same treatment to cryptocurrencies will lead to the diminishing of bureaucratic and administrative hurdles, and propel India further towards becoming a tech-fuelled economy.
Here is why they are being used far and wide in the digital world –
- Benefiting smaller merchants
The cost of digital payments and transactions, though lower than in the past, is still high for smaller merchants. Once cryptocurrency-led transactions are accepted in the economy, it will bring down the cost of digital transactions. This will make even small-scale merchants use them for low or small-scale transactions, without being burdened about the costs.
- Less threat to financial transactions
The digital revolution in India is catalysed by the Adhaar technology brought in by the government. However, that has led to major security concerns in the economy. With cryptocurrencies, the threat of fraud, hacks or leaks is less. With digital currencies, the transaction is solely in the hands of the person initiating the transaction, instead of banks and third-party financial institutions otherwise. Therefore, important personal and bank information involved is not shared and kept secure.
- Quick cross border payments
Right now, international payments take upto five days to be processed. So if your payment is not processed at a mobile casino, you are not able to play for the next five days. With cryptocurrencies, these payments can be made in seconds.
What gambling looks like in 2020
According to experts, in the first quarter of 2020, the Ethereum network handled $4.6 million worth of transactions. The number of casino apps on it has surged by a margin of 40% as compared to last year. TRON, a network called Las Vegas on the blockchain, has 92% of its total volume being used by casino apps. Its dollar volume came at $379 million.
From studies and statistics, the players are estimated to be spending $10 million a day on coin flips, dice rolls, slot hands and sports games. Most apps and mobile casinos online have realised the demand for crypto transactions and incorporated the payment features. They either completely support transactions through cryptocurrencies or take the help of third-party custodians like BitPay to convert user cryptocurrency into local fiat.
The gambling industry is fiercely competitive, and players can look around and test facilities before associating and spending money. Therefore, about 80% of the cryptocurrency transactions happen on a few select, popular apps and websites. The combination of cryptocurrencies and bonuses offered with them can be a winning deal for every gambling enthusiast. Be it slots, poker or blackjack, there are bonuses and safe crypto transactions that enhance the experience of gambling online. With so many mobile casinos and plenty of competition, the industry will embrace cryptocurrencies better.