- Online gambling is booming, thanks to cryptocurrency use.
- A portion of Bitcoin transactions come from online gambling platforms.
- Other crypto casinos use altcoins and stablecoins aside from Bitcoin.
- Tron surged in transactions related to online gambling.
- Crypto casinos still face many issues including crypto volatility, stringent regulations, scalability, and more.
While cryptocurrencies have yet to knock off the dollar from its throne, the alternative asset class is becoming the new darling of another budding sector, namely online gambling.
In fact, various reports show that in certain cryptocurrencies and blockchain ecosystems, most of their transactions come from crypto betting, be it through slots or through decentralized applications (DApps).
Bitcoin Seeing New Heights
Crypto frontrunner Bitcoin is seeing new heights in terms of transactions confirmed every day, thanks to the growth of many online casinos. At the moment, there are over 200 different Bitcoin casinos. This is one of the reasons for its daily average of 350,000 transactions.
According to BitInfoCharts, there are also more than 23 million Bitcoin addresses, of which 800,000 of them are active daily.
Aside from Bitcoin, some crypto casinos have started to implement other popular altcoins such as ETH, XRP, LTC, TRX, BCH, and DOGE, to name a few. There are also other crypto gaming casinos that prefer stablecoins over Bitcoin to avoid volatility. Examples of popular stablecoin choices are USDT, USDC, TUSD, and PAX.
Many online bettors have been observed to be attracted to these platforms. This is mainly due to their open-source game codes claiming to be “provably fair”. Moreover, some of these platforms do not require Know-Your-Customer (KYC), allowing them to cater to users who do not wish to reveal their identities.
Online Gambling Keeping Tron Afloat
A recent report by DappRadar revealed that transaction volumes from DApps from top blockchain ecosystems like Ethereum, Tron, and EOS have surged to $125 billion in Q3 2020. While decentralized finance (DeFi) has largely contributed to the figure for Ethereum and EOS, online gambling is the top reason for Tron’s growth.
As the chart shows, Tron, dubbed the “Las Vegas on the Blockchain”, has surged in transaction volume in the last three months. Tron DApps are dedicated to the gambling and high-risk category. This is contrary to Ethereum, which even saw a decrease in the said time span.
Additionally, increased activity in the DeFi space has also added to Tron’s market outlook. A dozen of other DeFi platforms have also been launched on the Tron blockchain.
Crypto Casinos: Still a Fringe Market?
There are a couple of limitations to this industry. These include the volatility of cryptocurrencies used for the slots and the lesser amount of users per day. Not to mention the rigid regulations that prompt others to create many accounts and wallets.
On top of these, blockchain technology has yet to mature to be able to scale better. On average, Bitcoin can process less than 10 transactions every second. If the demand increases, the blockchain might not scale.
Others are also ambivalent about what crypto casinos offer, namely trustlessness and decentralization. Some do not prefer automated and decentralized platforms due to less support they may give to players who experience possible glitches or payment difficulties.
At best, some bettors are happy that some crypto casinos do not take heavy cuts on their winnings; since they are unlicensed or unregulated. At worst, many are afraid that these platforms may vanish without a trace. This may cause them to lose all of their lucky earnings.
Nevertheless, the figures alone show that cryptocurrencies are indeed revolutionizing the online gambling sector, be it for good or bad. And if the innovations that crypto bring to the industry come with inevitable repercussions, others would remain willing to take it.