Stablecoins May Overtake Bitcoin in the iGambling Industry
Bitcoin has always been the primary choice for cryptocurrency casino players, but more recently stable coins are gaining momentum!
The marriage between Bitcoin and the online gambling scene began when Primedice opened its virtual doors in 2013 making millions in its first year. Any questions as to whether BTC would be popular with online gamblers were quickly answered.
Shortly after Primedice, unlicensed Bitcoin casinos began to pop up across the internet and by 2016 Bitcasino.io became the first ‘licensed’ BTC online casino establishment.
Numerous cryptocurrency casinos jumped on the bandwagon while many existing online casino brands rushed to add BTC to their list of accepted deposit methods. Adding BTC as a way to play casino games was easy thanks to the likes of Evolution Gaming, Play’n Go, iSoftbet, Pragmatic Play, and other well-known pioneering casino game developers pre-empted cryptocurrency gambling by already enabled their platforms to accept Bitcoin.
As BTC gambling became popular, casino games developers added XRP, ETH, TRON, BCH, LTC, DOGE, and other cryptos to their betting interfaces creating today’s hugely popular cryptocurrency casino gambling scene.
Although members of online casinos can fund their accounts using multiple cryptos, Bitcoin has always been the most popular virtual currency. Some cryptocurrency casinos will only accept Bitcoin while those that offer other cryptos still label themselves as BTC casinos. This is evident by reading about many of the BTC Casinos on Playcasino.com where many of these cryptocurrency casinos also accept other cryptos.
Shifting Trends Suggest Crypto Gamblers May Prefer Stablecoins
One of the issues with betting online using BTC or ETH is the instability of these cryptocurrencies. Players are winning session playing blackjack yet the value of their BTC could drop 5% reducing the value of their win versus their domestic fiat currency.
For some of these players, the reduction in value is minimal, while for others it defeats the object of gambling and casinos lose crypto players as a direct result of these fluctuations.
Surprisingly, the solution for BTC casinos losing players not happy with the instability of their cryptos was already available long before the first cryptocurrency casinos came onto the iGaming scene. That solution was to introduce stablecoins.
Stablecoins came to light to satisfy the needs of those who like the idea of decentralised cryptocurrencies but are put off by the highly volatile nature of cryptocurrencies. They are by nature decentralized crypto-collateralized cryptos with no single entity controlling them.
By pegging a stablecoin to a fiat currency or tradeable commodity like gold with low volatility, the cryptocurrency would see exceptionally low fluctuations in price. As a bonus, the concept adds increased trustworthiness, security, and transparency.
Tether (USDT) was the first stablecoin to hit the cryptocurrency market and it was an instant success, and cryptocurrency casinos are hot on its trail. The crypto was not an overnight success and only over time have cryptocurrency players begun to shift to stablecoins as an alternative while still playing cryptocurrency casino games.
Today cryptocurrency casinos offer a mixture of stablecoins:
Players Are Not Switching Back to Fiats
One of the easiest solutions for cryptocurrency casino players is to switch from crypto to fiat casinos. However, cryptocurrency casinos have a certain allure because of their transparency.
They an advanced ‘provably fair’ gaming algorithm to produce random game results. The game records those results on a public ledger which is also immutable proof of the player’s session. Players can then use software to go back and check the results of their session playing video slots, blackjack, baccarat, or any other casino game they placed cryptocurrency bets on.
This is as opposed to using fiat casinos whereby results are produced by a random number generator (RNG) regulated by a third-party. The disadvantage of RNGs is that there is no way for players to check the results of their sessions are random. As such, the best they can do is rely on the world of the casino licensing authority and algorithm testing company verifying the RNGs.
USDT, USDC, PAX, and Dai all use blockchain ecosystems and therefore cryptocurrency casino players still get to use the provably fair algorithm. As a result, rather than switching to fiat casinos, the stablecoin option is now the new trendy way to play cryptocurrency casino games!
It is now quite clear why stablecoins are the newly popular alternative to fiats and volatile cryptocurrencies. They offer less price volatility, higher security, and more transparent transactions. Their blockchain ecosystems record every session played using their respective cryptocurrency and they use the preferred provably fair algorithms which allow players to verify the results of the bets.
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