Blockchains and cryptocurrencies are revolutionizing the world of online gambling by providing players with a secure and anonymous way to bet using cryptocurrency on their favorite sports team or other events of interest. In fact, last year the gambling industry experienced approximately $70 billion in revenue, with a large portion of that coming from sports betting, making it one of the most lucrative industries in the world today, reports Betonmobile.
The reason blockchain technology has become so widely utilized in the online gaming industry is due to its ability to prevent fraud and provide enhanced security, which reduces risk and ensures that all bets are handled fairly and efficiently.
History Lesson
The first known transaction involving Bitcoin was in 2010 when one user paid another 10,000 bitcoins for two pizzas. Today, that would be worth about $10 million. The price of bitcoin reached an all-time high in late 2017 before dropping more than 50 percent to start 2018. Despite this major drop-off, bitcoin is still up about 1,600 percent for the year. And with such a quick rise in value, it’s no wonder people are so intrigued by it. More people have been investing in cryptocurrencies like bitcoin over the last couple of years – according to research from Cambridge University.
A Big Market with Room to Grow
Global sports betting revenues have exploded in recent years. In 2022 alone, $141 billion was wagered worldwide. This figure is expected to rise to $240 billion by 2023. The global casino market is even more staggering – a whopping $374 billion was wagered in 2017. You would think that such a large industry would be dominated by mainstream brands like Ladbrokes or William Hill, but no. 92% of sports bets are placed with illegal bookmakers who operate completely off-grid with no regulatory oversight whatsoever.
This trend is not unique to the world of sports betting – in fact, it’s common throughout all sectors of gambling which have been transformed by cryptocurrencies and blockchain technology over the last decade or so. For example, Melbet app downloads skyrocketed as soon as they added bitcoin as a method of payment.
In addition to lower fees and faster transactions, blockchains bring much-needed transparency to what is often an opaque industry. With no central authority overseeing transactions, users can be sure that their bets will be honored exactly as they were placed. Due to security breaches in recent years at some of the largest betting firms in Las Vegas and London, such an element of trust is crucial for consumers if they are ever going to begin trusting traditional bookmakers again.
Unfortunately for many who wish to gamble online without all of these drawbacks (and there’s an increasingly vocal one), sportsbooks that accept cryptocurrency almost always force gamblers into a harsh customer acquisition funnel to access their product.
Predictions for 2022 and Beyond
Blockchain-based currencies like Bitcoin have been around for less than a decade but are already disrupting many industries. The sports betting industry is no exception. Online gaming platforms like Unikrn have built their business model on top of blockchain technology, using it as a secure backend to process transactions. In 2022, we predict that blockchain-based currencies will be used as a viable payment option on every major online sportsbook in existence.
There will be fierce competition between these providers as they vie to attract players who want an easy way to gamble while maintaining complete anonymity and security with each transaction. As more people become aware of this new trend, cryptocurrency payments will start becoming more common in other industries, such as food delivery or taxi services.
A Complex Approach
For a long time now, sports betting has been a highly lucrative industry. However, recent technological advancements have challenged this status quo by bringing with them new ways to gamble on your favorite team. For example, technologies like Bitcoin and Blockchain have helped to make it possible for people from all over the world to bet on sports without having to go through intermediaries such as bookmakers or casinos.
Due to these advancements and other factors that we’ll explore in more detail below, there is no longer any single authoritative entity that controls the online gaming industry. Instead of there being one monopoly on this sector of society (as was once the case), there are now many different companies vying for market share. Some of these entities include blockchain-based platforms like Augur and Bitdegree, which give users the ability to create their markets. These decentralized platforms allow individuals to wager on anything they want, making life easier for sports gamblers who don’t have access to traditional channels. Moreover, blockchain-based platforms offer some intriguing possibilities that could change how people view the concept of gambling altogether.
The Challenge of Security
In a recent interview with Coin Telegraph, John Shipley of Unikrn detailed how the industry is embracing this new technology. The introduction of Bitcoin to our platform has been a game changer for us, he said. Using Bitcoin as an in-platform currency has given players an easy way to convert their bitcoins into fiat through our partnership with BitPay.
Since its inception in 2009, Bitcoin has grown into one of the most popular cryptocurrencies on the planet. It’s hard not to see why–Bitcoin is far cheaper than other payment options like Visa or MasterCard and transactions take only minutes, instead of days or even weeks. With all these benefits it’s no wonder that so many gambling sites have begun implementing Bitcoin as a form of payment over traditional methods. A recent report by Global Betting and Gaming Consultants estimates that Bitcoin will be used by at least 20% of global sports bettors by 2023.
Inclusion
Sports betting is nothing new in this day and age. It has been around for centuries. The practice dates back to ancient Greece with records of bets being placed on Olympian competitions. There was even a Roman emperor who allegedly used the force of law to require sports fans to bet on his horse races. Despite its long history, however, it wasn’t until recently that an entire industry was born from it when online gaming became commonplace.
And now that cryptocurrency is becoming more popular by the day, we can expect this industry to only keep growing as time goes on.
Blockchain technology seems like something out of a sci-fi novel sometimes because of how revolutionary it is and what potential it holds for many industries outside of just cryptocurrency or sports betting. It is truly a wonder of our generation, which makes it all the more exciting to see how this type of technology will continue evolving over the coming years.
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