Gambling has been around for a long time, but cryptocurrencies like Bitcoin are quite a recent invention. So how could they possibly be related, you might ask. Well, the gaming industry likes to keep abreast of any emerging trends and incorporate them into its products as a way to stay on the up and up.
Since (especially) the younger generations have been increasingly using it as a payment method, blockchain technology has inspired game developers to implement it in online casinos and games in general. So, in this context, how has blockchain gambling been developing recently, and what challenges have arisen along the way? Let’s roll the dice and find out!
How is Blockchain Tech Adoption Growing?
1. What is blockchain gaming?
(ONE37PM) (Investopedia) (Forbes)
Blockchain is a type of database that stores all transactions that have been made with cryptocurrencies such as Bitcoin. It’s safe and useful since the transactions can’t be manipulated—they’re stored sequentially, exactly as they occur.
Blockchain is decentralized, meaning there’s usually no central entity that controls or owns the game as a whole. For example, in a video game context, this means that gamers can own parts of it, such as digital assets or items. Instead of using real money, players use cryptocurrencies when they want to make some in-game transactions.
Additionally, when they win rounds, clear stages or win contests, they get coins, gems, etc., which are also transferable in blockchain gaming platforms and can be received and sent to digital wallets, which the technology helps manage.
2. The global crypto user base more than doubled in the first six months of 2021 alone.
Based on data from the 24 largest platforms in the world, the cryptocurrency user population exploded in the first half of 2021, going from 106 million in January to as many as 221 million in June. This was likely due to crypto’s recent mass institutional adoption and trading facilitation, with major players like PayPal, Visa and MasterCard unveiling plans to acquire and support it.
3. The global blockchain tech market was valued at $3.67 billion in 2020.
(Grand View Research)
The blockchain technology market is booming. Namely, its value is projected to nearly double year on year, reaching $5.88 billion in 2021.
By 2028, it’s expected to balloon at a compound annual growth rate of 82.4% and generate a dizzying revenue of $394.60 billion, which undoubtedly bodes well for the blockchain gaming market size as well.
4. 17% of UK adult online gamblers will consider using crypto in 2021-2022.
Brits don’t use cryptocurrency for gambling much. Namely, only about one in six of those who place bets online at least once a month intended to use it in the 12 months after being surveyed.
The low uptake might be due to the fact that 52% of punters believe the use of blockchain in the gaming industry has no staying power, while 54% don’t trust cryptocurrencies.
5. What are the top crypto casinos in the UK?
The best eCOGRA certified casinos that accept cryptocurrencies as means of payment in the UK, according to Scams, are:
- EnergyCasino—offers a bonus of £150, and its Bitcoin deposit limit is between £20 and £1,000.
- NetBet—this blockchain casino gives you a bonus of 500 spins and has a £5-£35,000 BTC deposit limit.
- Yako Casino—provides a £222 bonus and a £10-£5,000 deposit limit.
- AHTI Games—offers a 100 spins bonus, and its Bitcoin deposit limit is from £10 to 0.
6. In 2018, 44% of gamers globally traded or purchased blockchain items.
In 2018, 54% of the respondents in a Statista survey said that they hadn’t purchased or traded game items on blockchain gaming platforms in the previous year, whereas all but 2% of the rest had. That 2% had their answer classified as “other”.
How is the Gambling World Adopting Blockchain?
7. Gambling-specific cryptocurrencies have a combined value of over $150 million.
Gambling and blockchain-supported currencies go well together. This is why between October 2020 and January 2021, the crypto gambling market overtook the overall betting industry by 6%. In addition, the latest stats indicate that five of the gambling-specific cryptocurrencies account for about $10 million of the market capitalization.
Furthermore, over $3 million in such tokens are traded every day, with the blockchain casino industry attracting upwards of 30,000 players each week, which is one of the most interesting facts about casinos.
8. The global online gambling market was worth an estimated $57.11 billion in 2020.
The latest projections suggest that the worldwide online gambling market is set to grow by $40.58 billion between 2020 and 2025 at a CAGR of 11.31%, reaching $97.69 billion over the five-year period.
9. The value of the crypto gambling market is currently believed to exceed $250 million.
The overall crypto market reached a value of $2 trillion in 2021, and to keep pace, casino cryptocurrency integration has been intensifying. However, of the 6,000 such currencies available at the moment, the top 20 make up about 90% of the market since the overwhelming majority of casinos only accept Bitcoin. Nevertheless, as gamblers start to use cryptocurrencies more and more, this will likely change in the future.
10. Nearly one-quarter of gaming executives say blockchain makes a game more secure.
According to blockchain gaming statistics from a 2019 Statista survey in which the respondents were gaming executives from around the world, 23% said that this technology made a game more secure, whereas 19% thought it established customer trust. Another 17% claimed using blockchain in the gaming industry cut costs, whereas 15% said it was good for handling microtransactions. Further, 12% felt it protected IP.
Blockchain Gambling Challenges
11. The growth of the crypto gambling market is three times that of the global GDP.
Blockchain betting statistics tell us that the users of more than 60 crypto-based gambling platforms around the world place a bet 337 times per second, spending three Bitcoins per minute. The blockchain and online gambling industry is recording an annual expansion rate of 9%, triple that of the global gross domestic product.
12. Why is blockchain the future of gambling?
(Analytics Insight) (European Gaming)
Gambling with cryptocurrency is considered safer by many punters for several reasons:
- Explicit transactions—unlike with fiat currency, cryptocurrency gambling allows people to trace exactly where the money goes if they lose a bet. Also, in contrast to regular casinos, where all the cash goes to the owner, in blockchain ones, there isn’t a single centre of money transfer, which helps protect users and their stakes.
- Fraud is highly unlikely—but even so, betting with cryptocurrency should be done only in a reputable blockchain casino. Although it’s hard to scam someone using this technology since they can track all transactions, check the online reviews first and make sure you aren’t depositing your tokens into a fake website.
- Quick transfers—the fact that there isn’t a third party involved in making transactions speeds up the whole process and lowers fees and waiting times.
- Privacy—online gambling with blockchain will help you to keep everything anonymous since your digital currency wallet is encrypted.
However, you have to know your crypto—blockchain and gambling are a fairly recent pairing, so before you start using such currencies for it, you should learn all there is to know about them. Namely, given their volatility, sometimes even holding onto a particular one is a gamble in itself.
13. The value of crypto gambling currencies increased by 170% in a year.
The total pool of cryptocurrency used for gambling (no matter the type) is estimated to be worth about $939 million. These currencies’ value nearly doubled year over year in 2021, and this growth slowing down any time soon is simply not in the cards.
In addition to the cryptocurrencies designed specifically for gambling that create decentralized casino networks to ensure fair play, online casinos have been getting in on the action and releasing their own as loyalty tokens. These allow users to buy them and thus invest in the casino, and if it makes a profit, so do they. What a way to sweeten the pot, huh?
Laying All Our Cards on the Table
Blockchain gambling is undoubtedly the hot new trend! While people are unlikely to entirely abandon brick-and-mortar casinos where they bet cash, online and crypto casinos have been stepping their game up, trying to keep step with the soaring demand during the pandemic.
If you’re looking to get in on the action yourself, we hope that we were able to give you a few pointers on how to make the best of this emerging technology. Still, as with all gambling, you have to know when to cash in your chips, even if they’re digital. Good luck!