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How the Bitcoin Price Surge is Affecting the Crypto-casino Sector

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Cryptocurrency investors are most likely happy with how Bitcoin has been doing recently. Bitcoin increased about 20 percent to its price. It is great for crypto users as its price crashed back in March alongside the global market mainly because of the pandemic. This August, a Bitcoin now costs around 12,000 US dollars and Bitcoin hasn’t reached this mark since July of last year.

When it comes to online gambling, the use of cryptocurrencies is now the go-to of many because of its benefits and advantages. Transacting with cryptocurrencies like Bitcoin, Ethereum, Litecoin, and many others is generally quicker and more private than other forms of online transactions. This also helps people get rid of offshore limitations. People in the US or other countries can easily transact with a Bitcoin casino website in India without much hassle. 

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Since March, when the health crisis started to be called a pandemic, online gambling activities, particularly online casino gaming, rose worldwide. People were mainly staying at home, finding ways to entertain themselves. There were also not enough sports events for people to wager on and this is why sports punters sought online casino gaming in the last few months.

One may think that since more people are now gambling online due to quarantines and the temporary closure of land casinos would greatly help the crypto casino sector. This has been the case in March and before it started to recover in June. However, now that Bitcoin’s price is now over 10,000 US dollars, this could be a problem for casino operators.

There are already several Bitcoin casino operators that have reported fewer gambling activities. This is because Bitcoin’s rising price encourages people to hold onto their cryptos instead of using them to gamble or play with.

However, despite the surge in the price of Bitcoin, Ethereum blockchain seems to have a different story. It has suffered an unfortunate consequence of the increase in cryptocurrencies in the last few weeks. What you should know is that transactions on the Ethereum blockchain have a cost and this is called GAS. The increase in transactions in the Ethereum network means that GAS prices also increased.

Now, how is this a problem? Well, casinos that are processing many crypto transactions, especially Ethereum transactions, are susceptible to having problems with this. No player will want to spend two dollars to be able to place a bet that only costs five dollars. 

Because of this, Ethereum-based casinos are having problems. One of these casinos, Funfair, already pledged to the death of GAS. They want to remove GAS or the need for customers to pay for extra fees whenever they transact with them.

There is still no update on whether GAS will completely be gone in the coming days, but Vitalik Buterin, the co-founder of Ethereum, has already suggested a few workarounds. However, a long-term solution is more necessary and the Ethereum users and casino operators that the launch of Ethereum 2.0 will be the answer to this.

From a general point of view, the rise of Bitcoin value isn’t all wicked for the casino operators that accept cryptocurrency transactions. This makes crypto companies ready to take on more transactions as cashless transactions are now more in demand during this time. 

In the US, a gambling group is already calling for more cashless casinos to operate. Fortunately, Bitcoin and other blockchain gambling app and software developers have always wanted to focus more on the online gaming sector. 

One of the companies that stand out when it comes to this is BitBoss. The company’s CEO, Matt Dickinson, has already announced that they have already built a blockchain-based gambling system called Bridge and that it is already ready.

According to Dickinson, this is what Bridge is:

According to Dickinson

Dickinson said he and his company had been a massive believer in cashless transactions even before the pandemic. They believe that cashless transactions would help casinos make their mobile apps more useful. It would also help bring the younger generation into the casino circle. 

Overall, the rise of the value of cryptocurrencies has been significant for all its users. 

Crypto-casinos suffering because of this, in the long run, doesn’t seem likely. Right now, crypto users are still excited about the price surge and if the value mark of Bitcoin remains the same and won’t fall under 10,000 US dollars, then more people will be inclined to use their coins instead of holding onto them.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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