The Gambling Industry Is Assisting Bitcoin’s Growth, and Vice Versa Bitcoin Reserve disclaims responsibility for the accuracy of any investment advice derived from the opinions expressed in this article.
Gambling remains one of the most popular applications of bitcoin in all industries where it is currently accepted. This pervasiveness is now causing a transformation in the casino industry, which is hoping to drive bitcoin acceptance.
SatoshiDice was founded in 2012, and it would go on to become one of the first websites to provide bitcoin-based gaming services. SatoshiDice was once responsible for anywhere from 25 to 50 percent of all bitcoin transactions. Erik Voorhees, the founder of ShapeShift, is credited with creating the game, which remains one of the most successful bitcoin betting games ever created.
Furthermore, it was one of the very first significant bitcoin purchases. Voorhees sold SatoshiDice in 2013 for 126,315 BTC, which is equivalent to $11.47 million in today’s dollars and approximately $1.1 billion at the time this article was written. Later, between 2014 and 2017, online gambling establishments accepted a total of 4.5 billion dollars in bitcoin bets.
Since then, bitcoin-based on-chain and off-chain betting has grown in popularity throughout the gambling industry
However, fair gaming is most likely the most ground-breaking innovation that was made possible by the introduction of bitcoin. Trust is the single most important consideration when it comes to the more conventional forms of gambling that can be done online. Participants are required to keep their fingers crossed and have faith that the results provided by the service providers are accurate and equitable. Through the utilization of a publishable algorithm that is open to scrutiny from any interested party, the provably fair method does away with the requirement that participants have faith in the system for everything to be in proper working order.
Even though many blockchain-powered casinos owe their marketability to the innovative technology that underpins them, punters have kept coming back because of the characteristics of bitcoin. Transactions carried out using bitcoin are, first and foremost, a great deal more secure than transactions carried out using traditional gaming websites. Users are only required to have faith in the Bitcoin network itself, rather than trusting the operator with their payment information. This is because the operator does not have access to the users’ information.
In addition, the typical methods of withdrawal used by online gambling sites, such as cashier checks or debit cards, can take anywhere from several days to several weeks to complete. The processing time for Bitcoin withdrawals, on the other hand, is virtually never longer than an instant. In a twist of irony, the utility and convenience of bitcoin, which are credited with reshaping the online gambling industry, are also likely to play a role in the increasing use of bitcoin.
Putting money on bitcoin
Following SatoshiDice’s initial success, a whole new subcategory of blockchain-powered casinos emerged, and bitcoin betting eventually developed into its own industry. However, the use of bitcoin in gaming is not limited to the industry that is currently booming. The traditional off-chain gaming industry has begun to incorporate the asset into its operations as well.
These include both physical casinos and those found on more traditional forms of the internet. In most cases, these traditional businesses will use the services of a third-party payment processor to convert bitcoin to the respective country’s fiat currency. But the cryptocurrency bitcoin is doing more than just gaining popularity; it is completely upending the online gaming market.
With the introduction of bitcoin, a revolutionary shift occurred that reshaped the entire online betting experience. The trustless design of the bitcoin blockchain introduced transparency, security, and, most importantly, decentralization, a world away from the shady centralized model in which players flitted from game to game in anguish over which one might be rigged. This eliminated the single point of failure in traditional gambling hubs, which was a major issue for the industry.
How gambling on chance could benefit Bitcoin
Recent research indicates that the value of the online gambling industry is somewhere in the neighborhood of 59 billion dollars.
To put this into perspective, the industry’s compound annual growth rate (CAGR) is currently estimated to be somewhere around 12%. This puts it on track to grow by more than $100 billion over the next four years, and it’s not hard to understand why this is the case. Traditional casinos in Las Vegas are finding it difficult to compete with their online equivalents as a result of the proliferation of online gaming. In addition, because virtual currencies offer numerous advantages, the majority of newly emerging platforms are being designed with bitcoin in mind. This is happening because of the numerous benefits offered by virtual currencies. There is the potential for Bitcoin to amass an enormous amount of forward momentum if it is successful in penetrating the market for online gambling.
The article that we published the previous week took a look at the potential value that bitcoin possesses based on the many different markets that it can penetrate. The value of the cryptocurrency gambling industry is estimated to be $2.5 billion at the present time by industry analysts. It is one of the most penetrated industries for cryptocurrencies due to the fact that it generates approximately 4.2 percent of the total revenue that is anticipated to be generated by the gaming industry as a whole, which is $59 billion.
If the number of online gambling sites that are willing to accept bitcoin keeps growing at the same rate as the industry, then more people may start using bitcoin.
Some people may believe that the gambling industry is not the best driver of bitcoin growth because gambling can be seen as a somewhat murky industry. Having said that, it is extremely important to keep things in proper perspective.
After all, the discovery of gold in California and the subsequent gold rush in 1849 brought tens of thousands of gamblers to San Francisco’s infamous gambling dens. It is possible that the discovery of new gold deposits in the United States fueled the development of early markets for gambling. The lively gambling dens, on the other hand, played a significant role in determining the price of gold. There are those who believe that history does not repeat itself, but they acknowledge that it often does rhyme.