The talk around cryptocurrencies seems to be especially loud at the moment, whether it’s about Donald Trump releasing his own coin ($TRUMP) or the currency’s characteristic volatility. While many industries are just now waking up to the crypto party, iGaming was quick to incorporate it as a payment method years ago.
Virtual currencies solve a lot of problems for the industry, whether it’s high fees, slow transaction speeds, or fluctuating exchange rates. Today, there are plenty of online casinos that accept cryptocurrency, and even a few that specialise fully in it. So, how did the strong relationship between these two tech-forward industries develop, and where is it likely to take them in the future?
When was Crypto Created?
Before we get to understand why crypto has become so popular, let’s go all the way back to the start and talk about how. Crypto was first proposed in a white paper by its mysterious creator, Satoshi Nakamoto, back in 2008. He called for a currency that was decentralised, meaning it wasn’t attached to a central institution like the Bank of England, and could be traded online.
Nakamoto’s words became reality at the start of 2009 when he took part in the very first crypto transaction alongside software developer and friend Hal Finney. The exchange resulted in the birth of the original cryptocurrency, Bitcoin. From there, countless coins have capitalised on this success, including the likes of Ethereum, Ripple XRP, and Litecoin. We’ve even seen new forms being created, with Dogecoin, the first meme coin, launched in 2013.
When did Crypto Begin to Take Off?
It wasn’t until around 2013 to 2021 that crypto went from a fringe concept into a term widely known by the general public. In 2013 alone, Bitcoin grew from an initial value of £13 to surpass £1,000 for the first time. By the end of 2017, it was valued at £4,000, but the growth didn’t stop there, and it was worth an extraordinary £19,000 at the end of 2021.
From there, we’ve seen the price of Bitcoin absolutely skyrocket. Although it retains its characteristic volatility, Bitcoin is currently worth around £89,000, which is quite the distance to climb in just over ten years. This is the reason we’ve seen more and more industries adopt it as a payment method.
In a pretty astonishing move, the US Government has even declared their intention to keep a reserve of five cryptocurrencies (Bitcoin, Ethereum, Solana, Ripple XRP, and Cardano). The reserve will be made up of any coins seized during legal proceedings and will help keep the economy stabilised in the same way gold bullion does. Any new reserves will be on top of the already sizable reserve of Bitcoin the Government has, valued at around £13.6 billion. It shows just how far the currency has come to be completely ingrained in daily, and even political, life.
When did the iGaming Industry Adopt It?
The iGaming industry was certainly quick to welcome crypto; the first casino that accepted it was named after Bitcoin’s creator and opened in 2012. Soon after, casinos that specialised in crypto payments began to open their virtual doors. One of the early movers was Bitstarz, a casino founded in 2014 that only accepted crypto or fiat payments. It’s evolved from there to the point where I see crypto offered as a payment method on a site pretty much daily, and I often encounter specialist crypto casinos as well.
What’s Behind Crypto’s Growing Popularity?
iGaming sites accept a wide range of payment methods, including the likes of debit cards, bank transfers, and e-wallets like PayPal or Apple Pay. However, these options present a number of problems for players and providers, including slow transfer speeds and high fees. Simply put, the industry was in need of a solution to these problems, and crypto was able to offer just that.
Faster Transaction Speeds
Using other payment methods, I can wait a good deal of time for my transaction to go through, ranging from hours to days or even weeks. Nobody wants this when playing at a casino; waiting for your winnings definitely takes some of the fun out of things. Providers don’t want it either, of course, slow payments are never good for business.
When players use crypto to pay, though, it helps avoid this issue. Payments can arrive in accounts in a matter of minutes, sometimes even instantly. This is a serious advantage for iGaming players and providers alike, removing those frustrating waiting times.
Lower Fees
It’s not unusual to get stung by high fees when I’m making a withdrawal or payment at an iGaming site. The highest are usually associated with bank transfers and card payments, and they can be pretty hefty. I’ve seen anywhere from a few pounds up to £50! However, cryptocurrency doesn’t face the same levels of fees, instead, I usually only have to pay the minimum blockchain fee.
Improved International Payments
There’s nothing worse than finding an iGaming provider you’re really excited to try, only to discover they don’t accept your currency. It’s equally frustrating when you fancy playing at an overseas provider, only to face a ridiculous exchange rate.
Well, did you know that cryptocurrency doesn’t have an exchange rate at all? As a decentralised currency, crypto can be used for payments all over the world without the need for any conversions or steep exchange rates. That makes international playing considerably easier, opening up a new world of iGaming sites for players.
How is Cryptocurrency More Secure?
You might have heard cryptocurrency referred to as a more secure way to pay, which is all down to something called Blockchain technology. Blockchain is the lifeblood of crypto; it’s the technology behind every transaction. In the simplest terms, Blockchain is a virtual ledger that records every transaction associated with a cryptocurrency. There are a number of reasons it’s been labelled as one of the most important technology developments around.
Increased Transparency
The Blockchain ledger is public, so anyone who wants to know about a transaction is able to see the information they need. Arguably, the most revolutionary thing is that all transactions are permanent. Once they’re recorded, transactions can’t be edited or deleted, which massively improves transparency and helps prevent data manipulation.
Kept Safe With Keys
Crypto wallets are the virtual version of an uncrackable safe. Users are given a complicated, random string of characters that they use to access their crypto wallets. These are truly unguessable, keeping traders’ crypto safe. It does, however, mean that if they misplace or forget their key, they’ll also lose access themselves!
Maintained Anonymity
Some people, understandably, have concerns about uploading their personal and financial information onto an iGaming site. I myself make sure to thoroughly vet a site before giving it so much as my email. For those who have concerns over sharing their personal information, crypto offers a great solution, as they can make transfers directly using their crypto wallet. That means there’s no need for uploading lots of information or submitting personal documents, guaranteeing a greater level of security and anonymity.
The Future of Cryptocurrencies in the iGaming Industry
I’m finding it’s becoming more and more common to see an iGaming site offering cryptocurrency as a payment method, and that’s only likely to continue in the future. The two have a strong relationship, built on benefits like improved security, lower fees, and faster transaction speeds. For players, crypto payments continue to make things smoother and easier, heightening the experience.
At the moment, we’re seeing more and more people give cryptocurrency a try, and I believe once they see the benefits of it, they’ll be putting pressure on more industries to adopt it. The iGaming industry was ahead of the game when it came to adopting crypto, and it wouldn’t surprise me if they kept their early mover status by rolling it out more widely in the future.
About the author
Eugene Abungana is one of the most prolific voices in the cryptocurrency industry, with over ten years of experience under his belt. After graduating from the Kenyatta University with a degree in Economics, Finance and Journalism, Abungana began investing in cryptocurrency alongside working in a private trading firm. As a font of knowledge for all things crypto, he’s written for big names in the industry, including Economy Watch and Milkroad.