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Cryptocurrencies and Online Gambling

The integration of cryptocurrencies into the online gambling industry has been a game-changer, offering a new level of convenience, security, and anonymity for players.

As of 2023, the use of cryptocurrencies in online gambling has been on a steady rise, with Bitcoin being the most popular choice, accounting for 53% of cryptocurrency usage in online gambling. This trend is not surprising given the advantages that Bitcoin betting sites and cryptocurrency gambling sites offer, such as fast transactions, low fees, and enhanced privacy.

The global online gambling market was worth an estimated $66.7 billion in 2020 and is expected to grow at a Compound Annual Growth Rate (CAGR) of 11.5% from 2020 to 2027. The increasing adoption of cryptocurrencies in online gambling plays a significant role in this growth. In fact, the use of cryptocurrencies has become so prevalent that some online casinos now operate exclusively with cryptocurrencies, offering games that are provably fair and transactions that are secure and transparent.

Ethereum (ETH)

Ethereum, the second-largest digital currency by market capitalization, is a significant player in the online gambling industry. Unlike Bitcoin, Ethereum offers smart contracts, enabling the creation of decentralized applications (dApps) and autonomous organizations. This feature has led to the rise of Ethereum casinos, which offer a decentralized gambling experience, with games built directly on the blockchain. As of April 2023, Ethereum trades at around $1,870 per ETH, with a market cap of $225 billion.

Tether (USDT)

Tether is a stablecoin, meaning its value is pegged to a stable asset, in this case, the U.S. dollar. This stability makes it an attractive option for online gamblers, as it eliminates the volatility associated with most other cryptocurrencies. Tether’s market cap as of April 2023 is $81.4 billion, with a per-token value of $1.00.

Binance Coin (BNB)

Binance Coin is the native cryptocurrency of the Binance exchange, one of the largest and most popular crypto exchanges globally. BNB is used to pay for transaction fees on the platform, and it also powers the Binance Decentralized Exchange (DEX), contributing to the rise of cryptocurrencies in online gambling. As of April 2023, Binance Coin has a market cap of $51.5 billion, with one BNB valued at around $330.

USD Coin (USDC)

Another stablecoin, USD Coin, is pegged to the U.S. dollar and is backed by fiat-collateralized reserves. Launched in 2018 by the Centre Consortium, which consists of Circle and Coinbase, USDC offers a regulated stablecoin option for online gamblers. As of April 2023, USD Coin has a market cap of $30.8 billion and a price per coin of $1.00.

XRP

XRP is the native token for the XRP Ledger, created as a payment system by Ripple in 2012. The XRP Ledger uses a consensus mechanism that doesn’t use proof-of-work or proof-of-stake for consensus and validation, making it a unique option for online gamblers. On April 23, 2023, XRP had a market cap of about $24 billion and traded around $0.47.

Cardano (ADA)

Cardano is a proof-of-stake cryptocurrency created by engineers, mathematicians, and cryptography experts. It stands out among its peers due to its research-based approach. Cardano aims to be the world’s financial operating system by establishing decentralized finance (DeFi) products similar to Ethereum’s. As of April 2023, Cardano had the sixth-largest market capitalization at $13.5 billion, and one ADA traded for around $0.39.

Dogecoin (DOGE)

Dogecoin, often seen as the original “memecoin,” has gained popularity in the online gambling industry due to its widespread recognition and acceptance as a form of payment by some major companies. As of April 23, 2023, Dogecoin had a market capitalization of $11.1 billion, and one DOGE traded for around $0.08.

Polygon (MATIC)

Initially developed as a layer-2 solution, Polygon addressed issues with Ethereum network congestion and traffic. Over time, it evolved into a multi-chain system that enables blockchains to work together using Ethereum’s virtual machine. The platform also hosts smart contracts, dApps, NFTs, and offers various solutions for developers. As of April 23, 2023, MATIC, the native token of Polygon, traded at $1.01 and had a market cap of $9.3 billion.

Solana (SOL)

Founded in 2017, Solana is a blockchain platform that supports decentralized applications (dApps). People often refer to it as an ‘Ethereum killer’ because it processes many more transactions per second than Ethereum and charges lower fees. Solana (SOL) is the cryptocurrency that runs on the platform. Since its launch, the price has risen dramatically. As of April 2023, Solana reached a market capitalization of $8.4 billion and had a value of around $21, making it the ninth-largest cryptocurrency by market cap.

Polkadot (DOT)

Polkadot is a proof-of-stake cryptocurrency focused on interoperability among blockchains. Its protocol connects permissioned and permissionless blockchains and oracles. This allows different systems to work together. The core component of Polkadot is its relay chain, enabling the interoperability of various networks. As of April 23, 2023, Polkadot had a market capitalization of around $7 billion. One DOT was trading at about $5.90.

The Future of Non-Bitcoin Cryptocurrencies

Bitcoin remains a significant player in the online gambling industry. However, several non-Bitcoin cryptocurrencies are making their mark. These digital currencies offer unique features that reshape the online gambling landscape. They provide players with more options and flexibility. As cryptocurrency continues to evolve, it will be interesting to see how these and other digital currencies impact the future of online gambling.