Cryptocurrencies have steadily gained significance in the eGaming industry. Ethereum (ETH), which is the second most popular cryptocurrency after Bitcoin, is widely used in online casinos today. Currently trading approximately at $2,480, we can no longer underestimate the fast-rising value of ETH. Recent stats published by coinmarketcap.com estimate the market cap of Ethereum to be around $243 billion. It signals the continued use of Ethereum in digital transactions.
The year 2021 has particularly been an all-time high for Ethereum. From endless online debates about cryptocurrencies to fluctuating prices on exchanges, Ethereum has remained quite steady compared to other crypto coins. This post analyses the growing uses of ETH in online casinos. So, before you join any Ethereum casino, dive in with us as we explore this topic.
Does Ethereum Have a Great Potential in Online Casinos?
Since 2015 when Vitalik Buterin launched ETH, the crypto coin has steadily gained momentum to become the second most sought-after cryptocurrency globally. Ether relies on blockchain technology hence provides the much-needed security in digital transactions. And with its value projected to surpass $5000 by 2030, the stability of Ethereum largely informs its extensive use in web-based casinos. As an open-source platform for computing, the potential of ETH is further highlighted in its significance to emerging fintech trends in 2021.
A major turning point for Ethereum was in 2019 when Microsoft Azure, a developers’ platform, struck a partnership with ConsenSys to launch EBaaS. EBaaS is an abbreviation for Ethereum Blockchain as a Service, a platform that lets Microsoft Enterprise clients access a cloud-based blockchain development environment for the creation of digital assets. The partnership has since helped Ether gain more prominence and acceptance in a world where people have increasingly become critical about cryptocurrencies.
The growing market cap of ETH is also noteworthy. While about 72 million ETH coins were in supply at the time of its launch, that figure has significantly grown. A study shows that there are 115.6 million ETH coins in supply today. The amount of Ether in supply surpasses the maximum allowed for Bitcoins despite the latter being the world’s most popular cryptocurrency. Note that Bitcoin supply can never go beyond 21 million coins based on a formula created by the founder, Satoshi Nakamoto. However, a huge number of other cryptocurrencies in supply explain their slow value growth. For example, there are 45 billion XRP tokens in supply, yet the digital currency value has hardly gone beyond $3.84.
Using Ethereum in Online Casinos
Ethereum is widely accepted in popular online casinos, and it boils down to the many benefits of cryptocurrency. For starters, note that using Ethereum in online casinos has little to do with the fluctuating value of the digital currency but more to do with having an alternative and safe payment option. The first step to using EHT in online casinos is finding a gambling platform that accepts it.
Usually, there is a good chance that an online casino that accepts Bitcoin equally supports Ethereum transactions. Both crypto coins rely on blockchain technology for decentralized transactions. Note that you need to set up an Ethereum wallet with a trustworthy and reliable exchange for successful transactions on a gambling website. As ETH becomes even more widely accepted on gambling sites, more casino games tailored to suit the needs of Ethereum gamblers are being created. Most online casinos now feature hundreds of slot machines and table games that you can play using Ethereum.
Why Ethereum is Ideal for Online Casinos
While you can fund your online casino account using several other cryptocurrency wallets, ETH stands out in many ways. First, there is not much hype around Ethereum, which makes it a relatively stable cryptocurrency. With that, punters who use ETH to fund their gambling accounts or withdraw winnings get more value for their money. In a wider sense, Ethereum is preferred for long-term investment hence ideal for long-shot gamblers.
Note that the ETH cryptocurrency structure is designed to support long-term investment hence sustainable in the foreseeable future.
Moreover, compared to other cryptocurrencies, EHT transactions have a longer validity period. Minimal fees that come with the use of Ethereum in online casinos make the cryptocurrency even more preferred as an alternative payment option. A close association between Ether and Edgeless gambling tokens makes it the best cryptocurrency for online gambling because of low take-on bets by gambling platforms.
The use of smart contracts to verify Ethereum tractions is also worth highlighting. Smart contracts in ETH transactions are a major shift from the way other cryptocurrencies such as Litecoin and Bitcoin work. It is an automated program specific to Ethereum in blockchain technology that ensures seamless execution of ETH transactions.
Ethereum is poised for explosive growth if recent stats are to go by like any other digital currency. However, the drawbacks of using ETH in online casinos are equally worth noting. For example, ETH lacks the user-friendliness that Bitcoin has, which explains why it is less popular. Moreover, Ethereum is not as widely accepted in online casinos as Litecoin or Bitcoin. With that, it will take a few more years before ETH becomes wholly accepted as an alternative banking method in funding and withdrawing earnings in gambling platforms. In a nutshell, a lot more needs to be done to make ETH widely accepted, especially as storage of value for long-term investment in professional gambling.