Cryptocurrency has been in the news plenty since the turn of the year, which has ensured a raft of fresh investors being awoken to the possibilities that lay within.
This rise in popularity is due to new developments in the blockchain industry, such as Ethereum’s move to a proof-of-stake approach. This will help lessen the negative environmental impact cryptocurrencies are known for, creating more sustainable practices. These conscious moves have helped make the public more aware of these digital coins, if not a complete understanding. However, with so many crypto investment sites springing up across the world, investing in this industry only a few properly understand has become dangerously easy.
Whilst the big news stories steal people’s attention, crypto’s steady influence in another emerging sector is where investors should be focusing. The gaming industry, which includes online poker, slot machines, and casinos, is seeing a significant rise in popularity around the world, and could even be described as a booming industry. Thanks to the pandemic, those who enjoy roulette, poker, and slot machines have not been able to attend a physical casino, and have been forced to turn to online providers for their enjoyment. Market research website PRNewswire.com reports that the market was worth $72.02bn in 2021 and is expected to jump to $112.09bn by 2025. That is a 12.3% increase in four years, marking a big leap for any industry of its size.
So, why should this interest cryptocurrency investors? Because one of the more popular trends within the sector is towards crypto payment, rather than the usual method of deposits and withdrawals from bank accounts or payment facilitators. Poker.org explains how crypto is becoming a common way to fund an online poker account, and in the wider iGaming industry, the same is being seen with the arrival of so-called ‘crypto casinos’, which only deal in cryptocurrency. Part of the benefit for providers and gamers alike is that without a bank or middleman handling the transaction, which is a key benefit of crypto, they have lower costs and can even circumnavigate the Interstate Wire Act of 1961. That might be academic anyway, as many states are now putting legislation in place to allow these sites to operate.
The other factor to consider within the iGaming industry is NFTs, like Beeple’s artwork. Atari has launched an Ethereum-backed casino that includes old games created by the brand and, crucially, their own NFTs which can be leveraged to earn more digital currency. The project expects to see $400m of turnover by the end of 2023, and whilst the exact implications of that will be unknown on the wider crypto market, it is certainly worth investors keeping an eye on how it performs. Could other companies introduce a similar project and help give Ethereum a boost for investors?
As the iGaming market grows and evolves with crypto, it should bring some stability for investors in what can be an unpredictable market. Our past article on ‘The Pros and Cons of Crypto Forex Investment’ highlights that these digital coins have delivered huge returns to traders but doing so is no easy feat. Outside of the highly speculative market, there are also many measures to go through before you can even own a crypto wallet. However, if reputable casino providers continue to use it as a method of currency, it adds legitimacy to cryptocurrencies which in turn, helps draw investors back in.
Of course, with so many other forms of crypto out there, and some providers using different methods, such as Ethereum, it pays to have a grasp of what is going on in the online casino world. A trend may emerge there towards a new cryptocurrency that could result in a large gain if it is caught early enough. Therefore, it pays not only to understand your crypto, but also the main online casino providers and their changing trends.
