Blockchain-based crypto gambling has been growing by leaps and bounds for some time now. The trend was set rolling with the use of cryptocurrency in online gambling for the first time in August 2011. An online poker gambling platform named Switchpoker.com pioneered this trend by accepting all payments in Bitcoin. This led to consequent mass adoption of cryptocurrencies in the gambling world.
These digital assets have enabled players to place bets and trade virtual assets anywhere across the world. With the COVID-19 pandemic resulting in people being confined to their homes and the world economy hanging by the tenterhooks, the steadily surging popularity of crypto gambling has seen an explosive rise.
Let’s decode the workings of crypto gambling is all about and how the COVID-19 outbreak has contributed to its appeal:
Crypto Gambling – How It Works?
Crypto gambling can be organized in two ways – off-chain and on-chain. In off-chain crypto gambling, online and physical casinos accept cryptocurrency such as Bitcoin as a mode of payment. These gambling platforms and establishments use third-party sites to convert this cryptocurrency into a fiat currency.
On-chain gambling, on the other hand, takes place on a blockchain using smart contracts. These contracts comprise a backend code that runs on a blockchain network. Since this form of gambling does not involve traditional centralized servers, these are a lot more obscure and harder to track. These Bitcoin casinos, however, prevent access to users from certain countries, including the US.
How COVID-19 Contribute to a Rise in Crypto Gambling
The most immediate and serious impact of the coronavirus outbreak was felt by brick-and-mortar establishments around the world. The gambling sector was no exception to the crippling effects of the lockdowns announced in different parts of the world. In stark contrast, the online casinos, particularly those dealing in crypto gambling, saw a steady and exponential rise in the number of active and returning users.
Some of the factors behind this rise are:
Hassle-free Payment Process
Elimination of riders such as time-consuming bank transfers and steep processing fee make crypto gambling a preferred choice in these times when a lot of people are grappling with financial stress and uncertain future.
Just like Bitcoin mining, trade of cryptocurrencies and their storage in crypto wallets, crypto gambling also takes place on blockchain networks and is cryptographically encrypted. As a result, all bets are completely anonymous.
The combination of internet, blockchain and cryptocurrencies has reduced the operations costs of gambling, which translates into high returns for the end-user.
In this crisis where a lot of people are struggling with the loss of jobs and pay cuts, the credibility and transparency offered by crypto gambling makes it the perfect platform to make a quick buck. Not to mention, all that free time at hand and easy access to the internet makes it hard to resist proposition.
The world of gambling has undergone a massive transformation in the recent past. This pandemic might as well prove to be the defining point for the emergence of crypto gambling into the mainstream.