Those who have a big interest in crypto and are frequent visitors to online casinos might have come to the same conclusion as me. This being that the merge between crypto and iGaming platforms was inevitable. Predicting its growth and what the future landscape could look like though is a far more difficult task and is a subject that is often part of my thoughts as a keen observer of both industries.
In theory, crypto could fail tremendously and bookmakers who accept such currency could one day be sat on absolutely nothing. This of course would be a disaster. The sheer amount of online casinos accepting this new form of currency should suggest that they think the possibility of this happening is close to zero. I believe this too. However, anyone would be lying if they said that crypto was a safe investment for anyone to make and that success was guaranteed.
Therefore what will a crypto-influenced gambling world look like and how could it be beneficial?
As a person who has invested in cryptocurrencies myself, my first thoughts a few years ago regarding betting and crypto were naive. I thought why would someone want to spend their crypto, why don't they just leave it as an investment? At this time I didn't see the benefits of crypto beyond making a profit. Below I am going to explain why some players now only bet using cryptocurrencies.
An increasing amount of people are now becoming concerned by how much information about their personal habits is available to organizations and powers that we are not privy to. With this in mind, some crypto gambling sites allow players to gamble with crypto without having to register or provide any level of detail about themselves. This is very appealing to people who don't want data points collected on them. In most cases, all players need to do is sync their crypto wallet with the online casino and they are free to play.
In the U.S.A any winnings made from gambling need to be registered and will be subject to tax. In the UK all gambling winnings are free from tax so this is not such an issue. Regulations surrounding crypto are constantly evolving so this benefit might change at any time in the near future, but since all users are anonymous it is highly unlikely that you will ever be required to pay tax on gambling winnings made through crypto. If you were to win a huge amount of money and withdraw your crypto into fiat, you will be subject to capital gains tax, which does vary a lot depending on the country in which you are residing.
This one might be a bit controversial but imagine a scenario where you have deposited a small amount of money and through your betting decisions you have turned this amount into a nice sum. For the sake of the example, let's imagine you have increased the amount of Bitcoin you own by 5 times. If you were to purchase crypto during one of its perceived bear markets a 5 times increase could potentially mean having 100 times more funds in value if Bitcoin increased by 2000% as it did during 2020.
On the flip side of this, you could have been one of those people who decided to jump on the crypto bandwagon when the price of Bitcoin was nearly trading at $70,000. Since then the price has plummeted and you would have had to have made a 300% profit while betting for your funds to be of the same value as when you made the deposit.
Therefore an understanding of how crypto markets operate and an understanding of how the concept of bull and bear market cycles is crucial when betting with crypto. Some would argue, and with good reason, that you shouldn't have any investment ideology when betting with crypto as the price is unpredictable. Therefore, if you were to bet using Bitcoin, for example, you should be prepared not to make any withdrawals for a significant period of time.
This is a huge reason for players who live in countries where gambling is not just against social norms, it is prohibited. I am a great believer in a free economy and social freedom and this includes the right for a person to spend money on anything they like as long as it does not harm another person. If you are from one of these countries, crypto gambling is the answer to all of your dreams.
Maybe after reading this short article you have gained some perspective on how quickly the gambling world evolves and how often it is at the forefront of innovation. Without a doubt, many of you will be sceptical, and in the current climate, I wouldn't blame you for not wanting to go down this road. But ultimately, this could be a game changer.
If you believe in a free economy and that it is wrong for players in the world to be prohibited from gambling just because of the country they are residing in, then crypto gambling does go some way to resolving this form of injustice, if that is not too strong of a word to use.
Additionally, you might be from a country where gambling is considered a standard hobby but want to be part of a global revolution where players no longer need to be part of a register, and where online gambling sites have the freedom to share and dissect your information for exploitation. Furthermore, if you believe in crypto as an asset, or one particular asset such as Bitcoin, the whole concept of investment ideology might be the most appealing concept to you. The iGaming community is more likely than most to be open to a brave new world. I for one predict widespread change in the near future that would have been considered unfathomable not that long ago.
This article delivers the thoughts and opinions of the author, and it doesn't represent the stance of GoodLuckMate.