The Best Cryptocurrencies for Online Gambling
Posted by Harry Kane on Friday, May 28, 2021
There’s no doubt that the cryptocurrency market is becoming increasingly lucrative and influential across the globe, particularly with third-generation blockchains now introducing increased scalability and functionality for users.
To this end, the total global crypto market cap is now estimated to be $1.88 trillion, with Bitcoin alone boasting a cumulative market value in excess of $1.1 trillion.
In this post, we’ll review the five best cryptocurrencies for online gambling, while appraising their pros, cons and why they’re so compatible with the iGaming marketplace.
1. Bitcoin
Bitcoin remains the trail-blazing poster boy for the crypto space, having been the first to market when the domain ‘Bitcoin.org’ was registered on August 18th, 2008.
This was followed by the ground-breaking whitepaper entitled ‘Bitcoin: A Peer-to-Peer Electronic Cash System’ just a couple of months later, while the blockchain’s software was released as an open-source code in January 2009.
The prototype first-generation blockchain, Bitcoin has provided the building blocks for many of its contemporary rivals, with Litecoin in particular widely described as being “the silver to BTC’s digital gold”.
To this end, more than 50% of all cryptocurrency transactions now involved Bitcoin in one form or another, while BTC accounts for around 66% of the total crypto market capitalisation value that we listed earlier.
Sure, this percentage has declined from a staggering 86% in 2015, but this has more to do with the increased competitiveness of alt coins rather than any significant decline in the influence of BTC.
Most existing crypto casinos deal primarily in Bitcoin, due to the prevalence of the asset and its status as the most widely accepted digital currency in the world. In fact, we’re also seeing a growing number of Bitcoin-specific gambling sites in the UK and European marketplaces, so BTC is clearly the most convenient crypto asset from the perspective of iGaming in these regions.
Bitcoin has recently embarked on its latest bull run, with the price of a single BTC token increasing from $6445.67 on March 31st, 2020 to $58,786.40 just 12 months later.
Unlike previous bull runs, however, this looks likely to be sustained in the near-term, with Bitcoin having proved itself as an increasingly secure store of wealth and a relative safe-haven asset that’s similar to physical gold.
Of course, BTC has continued to experience fluctuations and volatility during this bull run, but a price increase of nearly 10-fold in just 12 months highlights its immense growth potential in the market.
These factors only serve to reinforce the asset’s popularity and secure status in the marketplace, making it a reliable choice for gamblers who want to wager with genuine peace of mind and see their bankroll appreciate noticeably over time.
While BTC is undoubtedly the best cryptocurrency for gambling (especially from the perspective of accessibility and reliability), there are some drawbacks to keep in mind.
The fundamental lack of scalability of Bitcoin offers a relevant case in point, with this underpinning large transaction fees and much slower processing times (particularly in the case of smaller transactions).
As BTC continues to push towards the $60,000 mark once again, Bitcoin is also an increasingly expensive asset to buy. So, if you don’t already have tokens in your possession, you may need to consider alternative crypto assets as an online gambler.
2. Ethereum
The most prominent second-generation blockchain, Ethereum was officially launched on July 30th, 2015 and has borrowed much from its infrastructure from the original Bitcoin protocol.
However, while BTC was created primarily as an alternative to national currencies and serves largely as a medium of exchange of secure store of value, Ethereum is a platform that seeks to facilitate immutable ‘smart contracts’ and the development of decentralised applications (Dapps).
This is the primary distinction between Ethereum and Bitcoin, while the two are also distinguished by a number of smaller technical elements that involve governance, coding and mining.
Ethereum definitely delivers on its promise as a second-generation blockchain, as it has successfully added functionality to the Bitcoin blockchain and begun to tackle issues such as scalability.
Interestingly, the crypto casino platform ‘Edgeless’ was also built on the Ethereum blockchain, with this revolutionary token utilising intuitive smart contracts to minimise the house take on individual wager.
This subsequently reduces the house edge applicable to alternative gambling disciplines, so there’s little doubt that Ethereum will play a significant role in shaping the iGaming landscape of the future.
The fundamental structure and functionality of Ethereum also underpins the type of long-term growth potential that simply isn’t available elsewhere in the marketplace. As Ethers are also required to execute code on the blockchain, the network is also incredibly sustainable and capable of supporting iGaming transactions over an extended period.
However, the unique link between Ether and Ethereum guarantees an endless supply of the former, with this lack of scarcity and constant fulfilment of demand limiting the value of the asset.
Despite this, a single Ether token is still prohibitively priced at $1,793.67 in the current market, creating the worst of both worlds for gamblers and making the asset far less attractive to those who don’t already hold coins.
3. Ripple
Ripple was released three years after Bitcoin in 2012, while this platform has also been built on a distributed open-source Internet protocol. However, it was actually developed from an idea first discussed in 2004, when RipplePay.com provided a decentralised currency for use within local communities.
It’s also centred on its native cryptocurrency ‘XRP’, which continues to showcase consistent growth in the market and is currently considered the seventh largest crypto asset in terms of market capitalisation as of March 31st, 2021 ($24,837,183,827).
However, Ripple has evolved far beyond being a basic cryptocurrency, now delivering on its initial promise as a global payment settling and remittance system for banks and financial networks. This is an addition to providing a medium of exchange for XRP and alternative crypto assets, with this innate diversity underpinning Ripple’s sustainable growth.
This definitely makes XRP a sound investment, and a reliable choice as your choice of gambling currency. This is also borne out by its close relationship with banks and leading financial institutions, which adds further credibility to Ripple and builds trust amongst users.
On a similar note, Ripple’s unique structure makes it the closest thing to a banking institution in the crypto market, creating a secure settlement system that afford real peace of mind to gamblers. It also boasts high levels of anonymity, allowing you to wager freely and without individual transactions being linked back to your identity.
The biggest drawback with Ripple is that it isn’t decentralised, creating a level of third-party control that marginally increases the risk of fraud and financial manipulation. This threat could be exacerbated in the iGaming space, especially if you end up wagering at a rogue, unlicensed or unsecured site.
It has also been argued that the Ripple Network has a shelf life, which means that in theory it could disappear at any time in the future. While estimates suggest that it could be hundreds of years before this happens, it may not be a risk that you’re willing to take with your hard-earned bankroll!
4. Litecoin
Litecoin was one of the first ever altcoins to hit the marketplace, with this peer-to-peer cryptocurrency having been launched on October 7th, 2011.
Unsurprisingly, this open-source platform was designed, built and launched on the Bitcoin protocol, while being successfully marketed as the “silver to Bitcoin’s digital gold”.
In this respect, it deviates slightly by seeking to compliment BTC rather than attempting to supersede it, incorporating scalability technologies to minimise transaction speeds, reduce fees and facilitate smaller transactions within the minimum of fuss.
Within two years of its launch, Litecoin has achieved a total market cap of $1 billion, and in May 2017, it became the very first cryptocurrency to adopt Segregated Witness (SEGWIT) to tackle the core issue of malleability on blockchain networks.
Given its close and inextricable relationship with BTC, Litecoin is an excellent choice for gamblers who want to wager online. This is particularly true for casual gamblers who wager relatively small amounts of cash, with LTC capable of processing a high volume of transactions quickly and for less over an extended period of time.
Mining tokens is also easier and less processor-intensive on the Litecoin network, creating the ideal scenario for gamblers who look to transfer funds between accounts on a regular basis.
Gamblers may also be interested to note that the brains behind Litecoin (Charlie Lee) is a former Google employee, with this helping to underpin a secure blockchain project that boasts technical expertise and immense longevity. So, your bankroll will be secure when it’s committed to LTC, no matter how much you want to wager on a daily, weekly or monthly basis.
However, some of LTC’s core advantages have been undermined by the evolution of Blockchain during the last decade.
Make no mistake; Bitcoin has definitely learned from its successor, with the introduction of SEGWIT technology bridging the scalability gap between these two entities. This is diminished the popular of LTC to some degree, although its average price of between $100 and $200 per token will appeal to newcomers who want to invest in an affordable asset.
5. Dash
If you’re someone who regularly dips in and out of events in the cryptocurrency market, you may know Dash by its previous moniker ‘Xcoin’.
Dash was officially launched on January 18th, 2014, with a staggering 1.9 million coins mined on the blockchain within 24 hours of this date.
Although it doesn’t command the same levels of attention as Bitcoin or its rival altcoins on our list, Dash is an inherently accessible crypto asset that boasts only nominal transactions fees. It reputedly boasts the most active altcoin community in the world, although other platforms may well dispute this.
At the heart of Dash is its incredibly simplistic and transparent model. More specifically, transactions tend to be completed within a matter of minutes, making it ideal for gamblers who wager regularly and require quick deposit and withdrawal options.
As you can probably tell at this stage, Dash is also one of the most user-friendly cryptocurrencies in the marketplace. This is a deliberate consequence of the blockchain’s design, as it was initially aimed that ordinary members of the public who have little or no knowledge of cryptocurrencies.
So, if you’re a gambler who is new to cryptocurrency and wants to exchange their bankroll into an accessible asset, Dash remains a viable choice. A single token can also be procured for as little as $214.23 in the current market, while you would have to pay a few cents in individual transaction fees.
However, the growth and scale of Dash has been hindered by a number of different factors, including block size limitations.
Unfortunately, the block size of Dash is limited to just 1 MB, with this creating a de facto and restrictive cap on its availability and potential in the marketplace. This may impact on your choice as a gambler, especially if you want to maintain a bankroll over time.
While Dash may not be your first choice as an online gambler, it retains strong levels of trust and satisfaction amongst users. It also offers an excellent opportunity to get involved in crypto gambling, especially if you have limited knowledge or understanding of blockchain technology.
The Last Word
The crypto market is an increasingly diverse entity, and one that’s home to several assets that are compatible with the practice of online gambling.
As we can see, each of these assets also boast distinct benefits and disadvantages, depending on your knowledge of cryptocurrency, wagering frequency and the overall size of your bankroll.
So, the key is to appraise the full range of options at your disposal as an aspiring crypto gambler, before making an informed decision that helps you to get the most out of your experience!