The cryptocurrency market is the newest digital asset class you can invest your money into. It has recently received a great deal of publicity and notoriety following a series of high-profile volatile price swings and poorly managed cryptocurrency exchanges. Cryptocurrency gambling appeared to be increasing as there are plenty of positives to using digital currency to gamble as opposed to a centralised currency such as the US dollar.
You can connect your wallet directly to the provider and remove any need to disclose personal bank information such as credit or debit card details. In addition, there is an added benefit for the gambler who uses the digital currency and the provider who offers the service, as they are not storing any centralised currency on their servers.
Digital casino operators are incredibly safe. Many companies apply the same level of firewalls and encryption that many banks and financial services implement. Therefore, if you are using an online casino, your money is extremely secure. However, by using cryptocurrency, you are adding an additional level of security.
“Online gamblers, much as with other online options such as e-commerce and equivalent entertainment, still seem to prefer traditional fiat options over the cryptocurrency alternative.” – Giuseppe Faraone, Author at casinotopsonline.com.
Today we will examine the findings of a recent study that has revealed a fairly large drop in the number of gamblers using cryptocurrency to gamble online. We will highlight some of the reasons why this may be and see if we can break down the statistics and analyse them effectively to determine if this is a short-term trend or if it could spell the end for cryptocurrency casinos.
What the statistics and data show
The findings have shown that cryptocurrency gambling fell by almost a quarter in the third quarter of this year. While cryptocurrency gambling is still a multibillion-dollar market, such a huge drop is highly noticeable and will be a cause for concern for many operators.
Initially, this was suspected to be due to global market conditions. Throughout western economies, there has been a combination of rising inflation rates, a cost-of-living crisis and people having less disposable income to spend on non-essential goods.
However, diving further into the data shows that gambling using centralised currency increased during this period. This begs the question, why are people moving back towards these currencies instead of their digital counterparts?
One primary reason analysts have pointed out is that cryptocurrency has dropped considerably since last year. Throughout 2021, many cryptocurrencies exploded in value. This includes Bitcoin, the main digital asset used in cryptocurrency casinos. However, throughout this year, the majority of the top cryptocurrencies on the market have suffered huge depreciation.
Bitcoin, for example, has dropped over 70% since its all-time high in November 2021. This could be the pivotal reason why the use of cryptocurrency at casinos has dropped so rapidly.
It might not necessarily be due to the fact that people use fewer cryptocurrency casinos to gamble at because they are less popular. It could be due to people having sold their cryptocurrency due to its rapidly depreciating value over the last 12 months.
Despite this, market analysts and commentators have noted that the rise of cryptocurrency casinos continues. If people begin to invest in cryptocurrency again and there is positive market sentiment, there could be a rush of people looking to gamble using digital currencies.
Another factor to consider is that cryptocurrency gambling has only recently emerged as a new market. In fact, online gaming and cryptocurrency are new markets as standalone entities. The combination of the two is still in its early stages. While some analysts and experts have been excited by the combination of these two industries. The fact is that people need to learn how much potential it has.
Even in light of this sharp retraction, it is too early to tell whether or not this is just a small blip or a market trend.
There will likely be a further drop in the number of people using cryptocurrency casinos for the reasons we have discussed in this article today. It is likely to either drop or see a period of stagnation due to several elements, such as the value depreciating sharply, the cost-of-living crisis and uncertainty among global economies.
Once these factors have quietened and the market is beginning to look healthier, it will be easier to ascertain whether cryptocurrency casinos are here to stay. If we see a resurgence in the number of people using them when the market and economy recover, this could signal a challenge to digital casinos.