Introduction
Over the years, technological advancements have impacted the rapid growth of online gambling. Such innovations have highlighted the use of cryptocurrencies and adoption of blockchain technology which has actually brought several benefits to online casinos, most especially by Bitcoin and Ethereum. However, despite advantages such as anonymity, fast payouts, and lower fees, it is also associated with a major drawback which is its volatility - a key characteristic of cryptocurrencies. This has led some gamblers to explore alternative cryptocurrencies.
Stablecoins, on the other hand, is different. While this is also a type of cryptocurrency, it does not carry the downside of price swings. Stablecoins have been a game changer in the world of crypto gambling for both players and operators. In this guide, we will further explore what these coins are, how they are helpful in crypto gambling, and why they are becoming popular.
What Are Stablecoins?
Stablecoins, as previously stated, is a type of cryptocurrency. However, instead of depending its value on the market trend, it is designed to maintain a stable value. Meaning, unlike all other cryptocurrencies, stablecoins are not volatile. In contrast, its value is dependent on stable assets such as fiat currencies like USD and EUR or commodities like gold. Through this characteristic, stablecoins are less likely to drastically change in terms of value, allowing its users to predict and be prepared on what to anticipate, especially when used for everyday transactions.
There are many well-known stablecoins, including Tether (USDT) and USD Coin (USDC). These coins are both attached to the value of the U.S dollar. The only time the value of these coins move is when the value of USD changes as well. This stability has caused an increasing popularity of stablecoins in online gambling along with faster payments and improved privacy.
The Role of Stablecoins in Online Gambling
Now that most casinos are accepting cryptocurrency payments, stablecoins have been a preferred option for transactions like deposits, withdrawals, and even bonuses. And with all the features it's embedded with, it's among the most ideal for online betting environments. Let's take a closer look on how players and operators can benefit from the use of stablecoins:
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Price Stability - The key advantage of stablecoins in online gambling in online casinos is its stability in value. While other cryptocurrencies such as Bitcoin and Ethereum are vulnerable in huge value fluctuations, stable coins remain safe from such drastic change. This allows players to be more confident whenever they make transactions and are less worried about dramatic changes.
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Predictability - Since the value of these coins are stable, hence stablecoins, players can easily predict and anticipate the current value of their coins. This gives players peace of mind and makes it easier for them to manage their gambling funds.
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Enhanced Security - Using cryptocurrencies allows players to gamble in a more secure and private environment, and stablecoins are no exception. This is through the blockchain technology which makes all transactions made with stablecoins transparent and recorded in their digital ledger which can be viewed by players. Additionally, it reduces the risks of fraud since there's no way that anyone can alter transaction history.
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Transparency - As mentioned, using stablecoins offers transparency. This builds trust among players which enhances the overall experience as they can ensure that all transactions made are legitimate. To understand more about this, you can read our article on The Impact of Stablecoins on Decentralized Finance.
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Fast and Cheap Transactions - Unlike using traditional banking methods, using stablecoins is much cheaper and faster in terms of executing transactions like deposits and withdrawals. The process usually only takes a few minutes or even seconds without delays that are commonly experienced when using traditional payments, ranging from several hours to days.
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Global Access - Another key aspect of using stablecoins is its ability to enable borderless transactions, unlike traditional banking systems that implement strict rules, most especially for international transactions. Through this, players can now enjoy online crypto gambling without the need to convert currencies which are usually associated with high fees and long processing times. For operators, this is also an advantage since this is a benefit that can attract a wider and a more diverse global audience.
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Wider Market -- The integration of stablecoins, along with all its benefits, has expanded the customer base for online gambling, attracting crypto-savvy gamblers who are familiar with the use of cryptocurrencies. Knowing that they are not subject to price volatility, players will most likely spend and deposit more money, which is an advantage on the operator's end.
Conclusion
Stablecoins has really been a game changer in the world of online crypto casino's. The benefits it is attached with has significantly made a positive impact for both players and casino operators. In the upcoming years, the role of stablecoins is expected to grow even further, providing further innovations and enhancements in the overall gambling experience. As this adoption continues to rise, the use of stablecoins may soon become the preferred method through their ability of combining the best of both worlds -- digital convenience and traditional stability.
