Today, it's safe to say that the cryptocurrency age has begun. Which of them, except bitcoin, can be effectively used as a means of payment in online casino? What do they contribute to the modern gambling industry? Why has the subject of earning cryptocurrency in online casino become a topical issue? The Slotegrator experts are going to answer these questions as well as describe the advantages and peculiarities of digital currencies.

Article summary

  1. Cryptocurrency and digital currency are not the same things.
  2. How bitcoin and other cryptocurrencies influence on gambling industry on the Internet
  3. Bitcoin-risks for online casinos
  4. Cryptocurrencies for online casinos
  5. Primary cryptocurrencies used in gambling and online games
  6. Types of online cryptocurrency casinos
  7. Why to create the online crypto casino
  8. How to choose cryptocurrency for own online casino
  9. How to open own Bitcoin casino and run a flourishing business
  10. Conclusion

Cryptocurrency and digital currency are not the same things.

Cryptocurrency is an internal payment unit (coin) of any public blockchain.  Blockchain is a technology that represents a continuous chain of encrypted information blocks, each of which stores information about all the links.

Put it otherwise, cryptocurrency is a virtual decentralized payment tool, which is protected by complex cryptographic algorithms.

The issue of cryptocurrencies is a result of mining; it is a complex procedure of the mathematical processes' implementation by means of computer facilities.

Nowadays, you can use the cryptocurrency for payments on the Internet, sell it or exchange for fiat money. The cryptocurrency is stored in special crypto wallets that are protected by complex encryption, so their owners can access them only with the help of a complex electronic key.

All payments are handled through the process of transferring the crypto money between the wallets. The transaction is conducted in several stages, which are fixed in the blockchain forever.

It is often said that the cryptocurrency is same as electronic/digital money, but it's not. Such statement is not entirely true.

A digital currency is the electronic money, which is used as an alternative or additional currency. Typically, they are tied to national currencies or precious metals. For example, the governments of many countries, such as Japan, the Netherlands or China claim about the release of their national digital currencies.

Digital currencies are sometimes also called virtual currencies, meaning any funds or their equivalents in digital form. For example, bank accounts, money in e-wallets of payment systems, etc.

The cryptocurrency, in turn, is not tied to anything; it is completely decentralized and cannot be managed or regulated in a classical way. 

How bitcoin and other cryptocurrencies influence on gambling industry on the Internet

 

With the advent of cryptocurrency, a new age in the online gambling industry has begun.

Many online casinos started using cryptocurrency to bypass the prohibition on gambling in some countries.

Bitcoin was the first most popular cryptocurrency in the gambling sphere as well as all over the world. Bitcoin earned a good reputation in the gambling world as well thanks to its decentralization, anonymity and transparency. To date, the leading online casinos accept bitcoins as a means of payment.

There are many advantages of using bitcoins for online gamblers as well. There are minimal/no commissions for deposit replenishments and winning withdrawal; moreover, the incidence of fraud on the part of the gaming house is essentially eliminated.

Bitcoin-risks for online casinos

Besides the undeniable advantages, bitcoin as a means of payment has some significant weak points. The fundamental defect is its high volatility. The bitcoin course surge that can be observed in the last year, has no economic basis and can be regarded as speculative activity of the investors, also called economic bubble.

This situation poses the risk of bursting. In that case, the bitcoin value will go down, causing severe financial losses.

Sure, the risks can be minimized if the gaming house constantly exchanges bitcoins into fiat money. However, there is a high probability to lose because of the rapid course increase.

Consequently, high volatility and increased attention to bitcoin causes a lot of inconveniences and potential risks, bringing a serious headache to owners of gaming houses.

In this regard, many operators started paying attention to other cryptocurrencies that are more stable and predictable.

Let's consider, which of them can be used as a bitcoin alternative in gambling and what shall be taken into account if using them.

Cryptocurrencies for online casinos

For the moment, there are more than 1000 various cryptocurrencies. The first and the main one, as noted above, is bitcoin. Therefore, all other cryptocurrencies on the cryptocurrency exchange are listed to it.

According to the data on December 13, 2017, the rating of 10 leading cryptocurrencies in terms of market cap, which represents the total value of the cryptocurrency turnover in $, looks as follows:

According to coinmarketcap.com

However, not all cryptocurrencies included in the capitalization top ten are used in online casinos. Certainly, bitcoin has a strong potential for the gambling business so all crypto casinos use it. This is due to its popularity in the first place. Nonetheless, a number of gaming houses as well use Ethereum, Litecoin, Dash, Dogecoin, Zcash, Peercoin, Stratis, Monero and fiat.

Let us take a closer look at the growth dynamics and financial characteristics of the most popular cryptocurrencies used in the gambling today.

Primary cryptocurrencies used in gambling and online games

Bitcoin (BTC)

  • 13 December 2017, one bitcoin cost $16678, 76.
  • Currently, its turnover is 16.7 million coins.
  • Market capitalization: $278 966 361 040.
  • Growth dynamics since the cryptocurrency advent on specialized exchanges:

According to coingecko.com


Ethereum (ETH)

  • 13 December 2017, Ethereum cost $16678, 76 per coin.
  • Currently, the turnover is 96.3 million coins.
  • Market capitalization: $59 841 269 705.
  • Growth dynamics since the cryptocurrency advent on specialized exchanges:

According to coingecko.com

Litecoin (LTC)

  • 13 December 2017, Litecoin cost $299,68 per coin.
  • Currently, the turnover is 54,3 million coins.
  • Market capitalization: $16 179 552 504.
  • Growth dynamics since the cryptocurrency advent on specialized exchanges:

 

According to coingecko.com

Dash (DASH)

  • 13 December 2017, Dash cost $847,42 per coin.
  • Currently, the turnover is 7,75 million coins.
  • Market capitalization: $6 551 689 667.
  • Growth dynamics since the cryptocurrency advent on specialized exchanges:

According to coingecko.com

Dogecoin (DOGE)

  • 13 December 2017, Dogecoin cost $0,0034 per coin.
  • Currently, the turnover is 112 billion coins.
  • Market capitalization: $383 325 239.
  • Growth dynamics since the cryptocurrency advent on specialized exchanges:

According to coingecko.com

Zcash (ZEC)

  • 13 December 2017, Zcash cost $366,57 per coin.
  • Currently, the turnover is 2,82 million coins.
  • Market capitalization: $1024 888 711.
  • Growth dynamics since the cryptocurrency advent on specialized exchanges:

 

According to coingecko.com

Cryptocurrency

Current course in relation to USD*

Capitalization*

Used in such gambling projects:

Bitcoin

16 678,76

$278 966 361 040

Nowadays, many gaming houses use it. Check out the list of the best bitcoin casinos on our site:  https://slotegrator.com/blog/spisok-luchshikh-bitkoin-kazino-2017-goda.html

Ethereum

615.38

$59 841 269 705

  • 1xbit Casino
  • Betcoin Casino
  • Fortune Jack
  • Crypto Games
  • Smart Roulette.io
  • 999 Dice
  • Duckdice.io
  • Luckygames.io
  • Bitsler
  • BitDice
  • and other online casinos

Litecoin

299.68

$16 179 552 504

  • 1xbit Casino
  • Fortune Jack
  • Bitsler
  • Dicecoin
  • Crypto Games
  • Favorite Casino
  • Duckdice.io
  • Betcoin
  • Bitcoin Penguin
  • Anonymous Casino
  • and other online casinos

Dash

847.42

$6 551 689 667

  • Fortune Jack
  • 1xbit Casino
  • Betcoin
  • Crypto Games
  • Luckygames.io
  • Dash Video Casino
  • Crypto Games
  • and other online casinos

Dogecoin

0.0034

$383 325 239

  • FunCasino
  • SatoshiBet
  • CryptoGames
  • Fortune Jack
  • Bitcoin Penguin
  • and other online casinos

Zcash

366.57

$1 024 888 711

  • Zcash Video Casino (Zecvideocasino.com)
  • Betcoin
  • 1xbit Casino
  • Zcrash.io
  • Luckygames.io
  • Cryptosdice.com
  • and other online casinos


Financial cryptocurrency forecasts

As it is seen from the charts, all cryptocurrencies have shown the stable growth in recent years. Financial market experts agree on their further development and look at it enthusiastically.

Meanwhile, bitcoin and ethereum occupy the leading positions. Many financial market specialists predict these cryptocurrencies to be the strongest. Despite some concerns about the bitcoin "bubble", the experts note that bitcoin and Ethereum may soon compete more aggressively.

However, new and developing cryptocurrencies are already snapping at its heels. For example, the capitalization of Litecoin and Ripple is gaining pace.

Types of online cryptocurrency casinos

All gaming houses that use cryptocurrencies on the Internet can be divided into two types:

  1. Those online casinos, which use cryptocurrency as additional payment means. They accept bankcards and e-wallets, as well as crypto wallets. These include almost all known gambling platforms. Such casinos mostly use bitcoins, less often – ethereum or litecoins. Such online casinos have all the necessary licenses, some of them, as well support Provably Fair, which gives the users an opportunity to check their chances of winning and make sure that any concerned third companies do not get involved in the process.
  2. The so-called online crypto casinos. Such gaming platforms are initially created for cryptocurrencies. They usually provide their players with full anonymity. However, many countries due to the legislative peculiarities do not consider cryptocurrency as a means of payment, so such online casinos can work without a license at all.

Why to create the online crypto casino

Cryptocurrencies occupy a large segment of the Internet gambling market. Here are the most important questions the online casino owners and managers ask: advantages and peculiarities of cryptocurrency in the gambling business; which cryptocurrencies are worth attention and which not; what is the bitcoin potential for online casinos.

The advantages and peculiarities of cryptocurrencies usage in gambling were discussed a lot. Hardly anybody doubts as to whether use it or not. Nowadays, it has become a necessity to stay on track, compete and develop the business.

There have been countless discussions on the bitcoin's potential, so it's more or less clear. Despite all its pros and cons, bitcoin is by far the most popular and required cryptocurrency.

A large number of potential players are increasingly searching for an answer to the question "What can you do with your cryptocurrency?" As a result, many people consider gambling as a way to increase their crypto capital. Accordingly, the whole gaming process is regarded by them as the cryptocurrency raising in the online casino.

Nevertheless, it is irrational to be limited to bitcoin, as there are many other developing and gaining popularity cryptocurrencies, plus huge financial risks. Yet, in the available variety, what cryptocurrency is it better to choose?

How to choose cryptocurrency for own online casino

The Slotegrator's experts, in the first place, recommend paying attention to the availability and popularity of the cryptocurrency. The last can be inferred by the capitalization data as well as the number of exchange transactions. The higher these indicators, the more popular is the cryptocurrency; the more users own it, the more players will be able to use it for gambling.

However, it is necessary to understand that the modern online gambling market is a highly competitive industry. Your business rivals have already implemented the opportunity to play for the same very popular Ethereum and Litecoins on their online-platforms.

In this situation, such cryptocurrencies as Dash, Dogecoin, Zcash, Peercoin, Stratis, Monero and fiat, which proved to be sustainable and effective, can enhance competitive advantages. However, it is necessary to understand the fact that they are not as popular as the three leaders, which means the potential target audience will be far less.

How to open own Bitcoin casino and run a flourishing business

These days, there are two variants:

  1. You can create a gambling project from scratch. However, online casino’s creation is a pretty laborious and costly process. Except that you need to obtain the license and pay for standard procedures, you will also have to invest massively in special software to work with cryptocurrencies. It differs from what is used for fiat money. Therefore, you either have to order the software or buy it from the developers.
  2. You can also buy a turnkey crypto casino. This is a less costly option in every respect. For example, the Slotegrator company offers a complete package, which includes both the platform and the game content, designed for cryptocurrencies, as well as already integrated payment services.

Conclusion

Taking all the previously mentioned into consideration, the Slotegrator's experts agree that it is a sound decision to use cryptocurrency in the modern gambling projects.

What cryptocurrency to choose is up to your marketing strategy and target audience.