It is undeniable that it was the potential for easy financial gain that drove mainstream interest in Bitcoin. While many developers, technologists, and futurists fell in love with the potential of the blockchain, an unknown virtual coin known as Bitcoin skyrocketing in value, made news headlines worldwide.
The more the general population learned of its value proposition, the more investment firms dealing in blockchain developments, such as NFTs and cryptocurrency, received the funding needed to advance the sector.
Crypto Price Surges Boost Market Adoption
When the first Bitcoin became available in 2009, it was only worth $0.00099! A year later, in May 2010, a person in Florida would unwittingly write themselves into history by paying 10,000 BTC for two pizzas from a local Papa John’s pizzeria. This is an astounding amount of money when you consider that at its peak, a single Bitcoin was valued at $63,000, valuing the takeout meal at around $630 million!
While it seemed an insane purchasing decision at the time, the pizzeria owner was deemed the real risk-taker for trading his product for a “useless” digital asset. It wouldn’t be until 2016 when BTC prices would show a sustained increase, that the world would begin to pay attention to this upstart virtual currency. Once the token crossed the $1000 BTC price point, its growth was astronomical, hitting its $63,000 ceiling in 2021.
While that bubble did burst, the attention it garnered worldwide has driven the adoption, advancement, and integration of the blockchain and web3 development while setting the stage for the creation of hundreds of altcoins.
Even governments, which initially downplayed the value of the technology, are now looking for ways to monitor it, tax it, and many are in the process of launching official Central Bank Digital Currencies (CBDC).
The Impact on the Crypto Casino Sector
The same is true for the impact that positive price movements in the crypto space have had on the number of players willing to move from traditional online gambling to crypto-first gambling sites.
While the entertainment value of games of chance should always be your foremost reason for playing them, when a Bitcoin slot holds the potential to payout up to 10,000 times your stake (or more), it creates an exciting opportunity to boost one’s holdings with the click of a button.
Combining the potential for acquiring such a valuable asset without paying the full ticket price for it with the low transaction costs, instant withdrawal processing, global access, and the chance to be a part of the most significant technological advancement since the internet, it comes as no surprise that the crypto casino space is booming.
The growth and interest in the sector are so profound that even Alex Costello, the vice president of government relations at the American Gaming Association, told NBC News in a 2022 interview that “This segment has exploded in a very short amount of time,” high praise from someone who is involved in the expansion of regulated gambling across the United States.
In the same interview, a Chainalysis report is quoted where it reveals the sector to be worth more than $10 billion, a 64% increase from its market valuation in 2020, only two years prior!
Cryptocurrency Bankroll Size Does Influence Behavior
What has been interesting to see is how people react to price fluctuations that are nonsynonymous with being a cryptocurrency investor. Rather than responses being limited strictly to the value of the tokens, there is a measurable behavior change based on the size of one’s portfolio. These insights are gleaned from reports looking at average spending, average wagers, number of games played per session, and time in the casino.
Players with more significant Bitcoin holdings, as measured by their average deposits and wagering patterns, tend to stake more per play session when prices increase.
Players with smaller crypto bankrolls tend to increase their wagering moderately when prices soften. Industry pundits attribute this to high price losses being more impactful for smaller investors. In contrast, lower price periods are seen as the ideal opportunity to increase their holdings ahead of expected price increases.
Since most casinos rely more on average players than higher rollers for their revenue, this means that crypto casinos could end up being more profitable when prices soften than when they peak – depending on how much they have to pay out in winnings, the increased cost of gas fees, and where their liquidity is held.
Crypto Casinos Have a Bright Future
While Bitcoin opened the door for the crypto casino sector, it has proven profitable and sustainable, with new sites launching regularly and several jurisdictions actively developing licensing and regulatory frameworks to support it.
The market is further bolstered by the ongoing advancements in blockchain technology, such as smart contracts and NFTs, and new ways to combine it with virtual reality, artificial intelligence, and other cutting-edge developments.
While the initial value proposition for crypto casinos was limited to whether coin prices were increasing, the sector is proving to be a breeding ground for innovation.
When crypto prices are high, do casinos still offer bonuses?
Crypto casinos understand price increases are a part of doing business. This means that your bonus will stay the same whether prices are high or low.
How can I gamble with crypto when prices are high?
While you fund your account with cryptocurrency, you only invest the amount you can afford to spend in fiat. We recommend keeping your fiat budget the same but reducing your bet size.
Is gambling a good way to “earn” crypto?
No. While you can win, there is no guarantee that you will win. If you are looking for an investment, speak to a financial advisor. Gamble for entertainment, and take any wins as a stroke of good luck.