Despite recent progress, the regulated, legal gambling sector has been slow to accept cryptocurrency. Although the industry’s hesitation was mocked as representing outdated thinking, it now appears wise and warranted.
The price of bitcoin has fallen to record lows. Since its peak in November 2021, the most well-known cryptocurrency has lost 77% of its value; according to Bank of America, this is the fifth-largest wipeout in history. The FTX cryptocurrency exchange’s bankruptcy filing and potential scandal also shed light on the regulated gambling industry’s now-validated concerns about widespread adoption.
The ups and downs
After a six-month bull run, Bitcoin reached $60,000 in April 2021. The cost quickly dropped to $30,000, but by November, BTC had risen back to $60,000.
For investors, the Bitcoin rollercoaster is nothing new, but the ride from $60,000 to $30,000 and back to $60,000 had many wishing that Bitcoin had found a new bottom and was once again secure to invest in.
Since then, the price of bitcoin has fallen drastically, with a recent high of $17,000 being reached by the collapse of FTX. Additionally, not all investors think this is the bottom.
Is the interest in cryptocurrencies in gambling over now?
Given its current struggles, Bitcoin’s adoption in the online gambling industry is likely to stall further and undo any gains it has made in the world of gambling.
The most well-known cryptocurrency, Bitcoin, has long been accepted at unregulated gambling websites, while cryptocurrencies as a whole have been avoided by regulated sites. Even so, it seemed to be changing very slowly.
Cryptocurrency’s biggest online victory came when some major banks and businesses decided to accept transactions in bitcoin, opening the door for casinos to accept cryptocurrency. Some land-based casinos now have cryptocurrency ATMs.
Online merchants seem to be warming up to cryptocurrencies and aren’t opposed to accepting them as a form of payment. That probably requires regulating the cryptocurrency sector.
The Problem with Cryptocurrency
The cryptocurrency industry has its critics. There are many well-known critics, whether they are criticizing the price volatility or the lack of utility. Like Warren Buffet, who has publicly expressed his displeasure with the cryptocurrency industry, particularly bitcoin,
“Cryptocurrencies basically have no value and they don’t produce anything”.Buffet said.
The regulated gambling industry sees cryptocurrency as having an even more serious problem. As was already mentioned, one of the key distinctions between regulated and unregulated websites is the acceptance of cryptocurrencies. The reason being;
Casinos are subject to stringent anti-money laundering regulations, as are online gambling casinos. It is quite impossible for gambling websites to accept cryptocurrency payments due to the decentralized nature of cryptocurrencies and the lack of regulation. Decentralization is the key selling point of cryptocurrencies. In contrast, unregulated sites tout decentralization and anonymity as advantages, which are unacceptable in the regulated gambling industry. The conclusion is that cryptocurrencies need to put in a lot of effort if they want to gain traction in the legal gambling sector..