Home » Effects of the Crypto Downturn on the Crypto Casino and Gambling Market
One of the most common questions crypto fans have been asking lately is, when will Bitcoin recover? The entire cryptocurrency industry has been on a downturn since late 2021.
Back then, Bitcoin was enjoying great moments. It had skyrocketed to $69,500, pulling many altcoins to all-time highs along the way. In the next year, crypto turned upside down.
The digital currency once projected to hit $100,000 in 2022 now costs $16,000 at press time. Some financial experts believe the future of crypto is bright. But in the meantime, the bear market has impacted the gambling market tremendously. Learn more below.
History shows crypto casinos grow during bull markets. When bitcoin is doing well, it attracts plenty of attention from investors, celebrities, banks and businesses. 2021 was a good example.
With the prices of nearly every crypto coin going up, lots of casinos started to accept Bitcoin. This year, fewer casinos are showing an interest in the digital currency.
Truth be told, every gambling website does what’s best for its bottom line. Bitcoin’s lowering prices comes with a lot of risks. A casino could support BTC deposits today, only to cash out much smaller amounts the next day.
Another reason there’s reduced interest in crypto casinos is that most enthusiasts are “holding bags.” They bought bitcoin and Ethereum at higher prices. Right now, the best thing they can do is to hold their coins and wait for better market prices in the future.
To be clear, there are still many people betting on slots and poker using crypto. Bitcoin diehards won’t stop using the digital currency any time soon. It’s just that more people will get back to crypto once it recovers its historically high prices.
Bigger Bonuses and Promotions
The demand for crypto casinos may be low during this downturn. But that isn’t to say casinos are not marketing their services. If anything, they’re luring new and existing customers with much bigger bonuses than in the past.
How do bonuses help casinos acquire customers? Bonuses are like any shopping discounts you’ve used in the past. Think of ‘Buy One Get One Free’ promotions. They help give you double value for your money.
Casino bonuses work in the same way. When you grab a 100% match bonus worth 1 BTC, you receive one extra bitcoin to play your favorite slots and poker games.
Word to the wise: Choose bonuses from top crypto casinos. You’ll get more than a bonus. You’ll have a wonderful gaming experience playing top-tier slots and table games.
As mentioned, crypto casinos are pretty generous these days. How generous are we talking about? The best bitcoin casinos cap their bonuses at 5BC. Keep in mind you get a bonus equal to your deposit amount. If you deposit $100 worth of crypto, you get $100 worth of BTC.
Sluggish Crypto Casino Developments
The crypto downturn lowered the demand for crypto casinos and games. In turn, it discouraged some developers from creating new products for the industry. In 2021, the industry was experiencing a surge of play to earn games and provably fair games.
You can still find play to crypto games. But developers are creating fewer of these games. This is all tied to the uncertainty of the crypto industry this year. No one wants to create products that people may eventually refuse to buy.
Don’t get it wrong. The crypto industry will eventually recover from the ongoing market downturn. But before then, expect fewer headlines about projects targeting the casino industry.
Less Positive Press
No one seems to be talking about all the great things happening in crypto right now. The media is focused on the market crash and the failure of exchanges like FTX.
Although Bitcoin is taking a price hammering, there are many gambling businesses now accepting crypto deposits. What’s more, we have studios developing blockchain-based slots and roulette games.
On the other hand, casino-specific streaming channels are popping up left, right and center. This means more people talking about how to have fun at casinos through bitcoin and altcoins.
Still, news networks would rather focus on why Bitcoin may not recover for months. That’s alright. There are still a lot of crypto-centered blogs and YouTube channels provide press to the crypto gambling industry.
Crypto Casinos Accepting Fiat Payments
Some crypto casinos have no plans to accept fiat payments any time soon. But the more bitcoin’s price reduces; the more casinos are diversifying by supporting traditional means of payments.
From a business perspective, supporting both crypto and fiat payments is the right decision to make. For starters, a casino can attract the attention of people who want to play slots but are afraid to use Bitcoin.
Secondly, gambling sites worried that fluctuating crypto prices may impact their profits can spread their risks. They do not have to accept all payments through Bitcoin. They can also support dollars, euros and pounds.
When you think about it, there are fewer crypto-only casinos these days. Most gambling sites prefer to support both fiat and digital currencies. This could end up being the trend for years to come.
Stable Coins and Casino Tokens
No one wants to lose money during this crypto winter. Still, there are lots of people who like to gamble through bitcoin and altcoins. As a result, there’s more demand for stable coins in the iGaming sector.
A lot of people who gamble at crypto casinos want to deposit money through USDT or BUSD and not Bitcoin or Shiba Inu. It makes a lot of sense. Stable coins are pegged to the US dollars, which ensures they do not plummet when other coins go down.
Stable coins help with deposits and withdrawals. But once you send money to a casino, you need a way to play slots and roulette—games which may not have been designed to support crypto.
To provide a solution, some casinos have a special token you can use to play different casino games. Think of casino chips. They only hold value within the casino. You can use them to win money. Then you can convert them back to crypto and cashout your profits.