Do we really need so many coins for gambling?
In 2015, there was only a handful of cryptocurrencies. People didn’t know anything about the blockchain technology or decentralized currencies. At that time, the Bitcoin was what many people had heard of as far as cryptocurrency goes. But there were Bitcoin fans who were monitoring the growth and performance of the crypto. In early 2017, the word cryptocurrency started picking momentum and mainstream media started paying attention. By then, the gambling world had already set the pace in the adoption of cryptocurrency as a payment method.
The cryptocurrencies circulating in the market as of 19th April 2018 were more than 1,730. There are those who say the number is much higher. Gambling has more than its fair share of cryptocurrencies, and still more are coming up. There are casinos which specifically offer cryptocurrency deposits and withdrawals. Bitcoin happens to be the favourite crypto for casinos. The traditional gambling sites are also adopting Bitcoin and other altcoins as an additional payment method.
Countries have even stepped forward to say that cryptocurrencies can be used officially and legally in casinos. The Isle of Man sanctioned Bitcoin as a legitimate payment method in online casinos in 2017. In March 2018, Malta announced plans to adopt blockchain technology in line with making gambling easier for gamblers.
There are hundreds of cryptocurrencies which are designed and launched and which are targeting the gambling market. As stated earlier there are over 1,700 cryptocurrencies. But the question that needs to be answered is; do we really need so many cryptocurrencies?
The Bitcoin was good but certainly not enough and in some instances not good enough. It lacks scalability, the transaction fees are just way too high, and to some people, it is not exciting enough. There are cryptos such as Litecoin where hashing is much better and others like Ethereum whose versatility is universal. Some of the cryptos in the market today, especially in the gambling industry, are to help eliminate the issues gamblers encounter using Bitcoin. But as much as one cryptocurrency is not enough, 1,700 or even 500 seem to be too high a number. The main risk of having these many altcoins is that many of them will only last for a few weeks before their value plummets leaving investors with huge losses. And others will never rise above the ICO token price – as has been the case with several altcoins launched in 2017.
Why using cryptocurrencies is popular in gambling
Gambling industry demands privacy and security. In some countries, gambling is illegal while in others regulations are such that it is practically impossible to gamble. For a very long time, financial institutions have made it tough for gamblers to enjoy their game. With the introduction and the rise of cryptocurrency, many of the bank’s tedious, and unnecessary conditions are being done away with. Gamblers are able to bypass the regulations of banks as well as restrictive laws of governments when they opt to use cryptocurrencies instead of fiat currency.