Exploring the Benefits of Ethereum Gambling

Posted by Harry Kane on Tuesday, March 15, 2022

While the cumulative market capitalisation value of the crypto space may have fallen significantly from its peak of over $3 trillion in November 2021, it’s still worth an estimated $1.22 trillion in total. Ethereum (ETH) is the second largest crypto asset by value and market cap, with a single token costing $1,781.44 at the time of writing and the latter value estimated at in excess of $217 billion.

Ethereum is a second-generation blockchain that is genuinely unique in the market, with its attributes making it popular among gamblers. But why is Ethereum so special, and what are the advantages of wagering at an ETH casino? Let’s find out!

Getting Started – What is Ethereum?

Ethereum is distinguished by a number of unique criteria and objectives, including the desire to optimise anonymity and provide universal access to borrowing and saving through the blockchain and peer-to-peer agreements. Another key element of Ethereum’s blockchain is its compatibility with a diverse range of projects and code, creating a scenario where innovators and app developers can utilise the ETH platform to build decentralised and universally accessible products.

‘Decentralised Apps’ (or DApps) describe autonomous tools which underpin smart contracts and similar functionality on behalf of users, and Ethereum provides an environment in which this type of app can be built in an efficient and cost-effective manner. When you consider the qualities of Ethereum, it should come as no surprise that the blockchain is tailormade for online gambling.

After all, casinos built on this platform are completely decentralised and can theoretically help to negate the classic house edge, while they’ll drive far greater levels of transparency with regards to bonuses and withdrawals. Even on a fundamental level, casinos that accept ETH tokens may be seen as more advantageous than traditional or even Bitcoin establishments, thanks to the unique benefits that they offer to players.

What Are the Advantages of Ethereum Gambling?

At this stage, it’s important to delve a little deeper into the benefits of Ethereum gambling and why this particular cryptocurrency is so appealing to players. Here are a few of the primary advantages of Ethereum gambling:

#1. Free and Fast Withdrawals

While many traditional payment methods provide free withdrawals at online casinos, some operators continue to apply a nominal transaction fee across credit card or e-wallet transactions. Conversely, the decentralised nature of Ethereum completely eliminates any middle man, allowing for completely free withdrawals that won’t eat into any profits or returns gained in relation to your individual stakes.

Of course, ETH charges a fee to complete individuals transactions (this is commonly referred to as ‘gas’), but these are applied directly on the blockchain and are required to process payments in a quick and efficient manner.

You can also get your money quicker with Ethereum, which is faster than most traditional payment methods and considerably faster than Bitcoin at present. In fact, while e-wallet and BTC withdrawals can take an hour or 15 minutes to process respectively, transactions completed through Ethereum can occur almost instantly.

When compared directly to BTC, we see that Ethereum processes between 10 and 15 transactions per second on average, thanks largely to its improved scalability and functionality. Conversely, Bitcoin processes between three and five transactions during the same period, creating a significant wait time for your funds.

BTC faces many issues in this respect, with block size limits and the blockchain’s proof-of-work (PoW) model combining to create significant bottlenecks in transaction processing capacity. ETH steps in to solve this issue, which is one of the reasons it was launched in the first place.

#2. Benefit from the Immutable Blockchain

Across all blockchains and cryptocurrency assets, one of the key benefits is the immutable nature of the technology and record keeping. So, in addition to being completely decentralised and removed from any central point of control, it also creates financial and transaction records that cannot be changed or manipulated in the future.

As a result, you don’t need to worry about rogue operators manipulating your transaction or withdrawal information, as block records will highlight every occasion on which you’ve requested funds to be withdrawn and whether or not they’ve been processed.

This can provide you with genuine peace of mind as a gambler, especially given the competitive nature of the contemporary iGaming market and distinct rise in the number of fraudulent operators that are active.

#3. Withdraw at the Right Time to Optimise Your Ethereum Payouts

Ethereum and all cryptocurrencies are inherently volatile, and this has been borne out during the market’s significant crash through Q4 of 2021 and beyond. For example, the value of a single ETH token peaked at $3,532.97 on 11th November last year, but a dramatic decline has since seen it plunge to just $1,429.27 as of 5th June.

However, if we analyse the asset’s price performance over the course of the last five years, we see that Ethereum has increased from a low of $128.05 to the aforementioned total of $1,429.27. This highlights the ability of crypto assets like Ethereum to increase exponentially over time, so the value of your bankroll may also soar in instances where it’s comprised of ETH tokens.

In practical terms, this means that Ethereum gamblers can simply hold onto their winnings and keep them locked in their online casino account, waiting for the market to rise and their holdings to appreciate in value before completing a withdrawal.

Of course, an ability to monitor and pre-empt market trends helps here, by enabling you to time both deposits and withdrawals in order to optimise the value of each withdrawal. This may prove challenging, but it’s something that deliver increased yields over an extended period of time.

The Bottom Line

Of course, the latter point may also be considered as a negative by some, as it theoretically has the potential to reduce the value of your holdings and eat significant into your returns over time. The value and impact of ETH gas fees may also be of concern on occasion, as this can increase markedly in instances where there’s peak demand in the marketplace and miners can pick and apply a premium to verify transactions.

Overall, however, Ethereum casinos are incredibly transparent and offer huge advantages to players, when compared to both regular operators and those powered by Bitcoin technology.