Bitcoin

Bitcoin and Casinos – Why the Dynamic Duo Are Successful and Here to Stay

Published

4 years ago

October 5, 2020

Reading Time: 5 minutes

When Bitcoin first made its foray into the financial scene, it seemed like little more than an experiment. The idea behind this new form of money was introduced during the peak of the 2008 financial crisis.

Bitcoin was a new form of money with no central governing entity. Rather, it made use of a transparent, distributed ledger system for recording transactions. A network of peers was responsible for keeping things moving.

Bitcoin has come a long way since then and is currently valued at over $10,900. But the journey there has been anything but smooth.

Bitcoin ‘Bubbles’ and Obituaries Rock Cryptosphere

Due to its massive volatility, the reigning king of crypto has been dismissed numerous times along the way. The very first spike in Bitcoin’s price took place on July 12, 2010. At the time, price shot up tenfold from $0.008 all the way to $0.08. In 2011, it sung more wildly, reaching a new peak of $31.

A more remarkable price spike took place in 2013. After skyrocketing to an all-time high of over $1,000 in November that year, price fell to about $177 over a span of 12 months.

But one of the most memorable bubbles of all time was the 2017/2018 one. Back then, BTC made its most astronomical ascent to an all-time high of nearly $20,000 in December 2017. Come January, it first dropped to $10,000, hovering there for a while before falling below $5,000.

As a result of these roller coaster rides, there have been at least 382 obituaries to its name. These typically take the form of essays explaining why Bitcoin is doomed to fail. The oldest of these was announced on December 15, 2010, while the most recent was on September 4, 2020.

Bitcoin Adoption Hits New Highs

However, during this time, Bitcoin has seen enormous adoption as can be seen from its usage milestones. As of September 30, 2020, the total number of transactions that have taken place on the Bitcoin blockchain was 573,063,000 according to Blockchain.com. This has not been seen more clearly than in the gambling industry, which now boasts over 200 different Bitcoin casinos with thousands of different games.

On average, about 350,000 transactions are confirmed on the network every day. That translates to approximately 15,000 transactions per hour or 4 transactions every second. Moreover, unique BTC accounts have grown at a rate of almost 60% per year over the past five years.

BitInfoCharts shows that there are over 23 million Bitcoin addresses and more than 800,000 active users on the network every day.

Decentralization Meets Smart Contracts

A noteworthy development that resulted from the launch of Bitcoin was that it spawned an entire ecosystem of digital assets. Bitcoin’s launch had introduced not just a digital asset but also a technology known as blockchain.

A blockchain refers to a public, decentralized ledger that makes it possible to securely record transactions, thus eliminating the role of an intermediary. The concept was so revolutionary that it inspired the creation of new blockchains beyond Bitcoin.

The first of this new family of digital assets was Ethereum, offering new functions below the value transfer that Bitcoin offered. Specifically, Ethereum was created for the execution of smart contracts and decentralized applications (DApps).

However, the idea of smart contracts actually preceded the launch of the Ethereum blockchain. Its roots are traced back to 1994 when Nick Szabo suggested the use of protocols to facilitate contracts. His idea of a digital contract would offer more features than what conventional contracts offered and reduce transaction costs.

Vitalik Buterin, Ethereum co-founder, built on this concept, implementing smart contracts into a blockchain system in 2013. As used in blockchain, smart contracts are scripts that implement a traditional contract using code. They are self-executing in the sense that the moment specified conditions are met, they go into effect.

The application of the concept makes it possible for parties that are completely unknown to each other to get into agreements without requiring a middleman. All the terms and conditions of a smart contract are accessible to relevant parties. Consequently, there is no possibility of a dispute arising after it comes into force. Moreover, they make it possible to execute transactions much faster than in the traditional process. And since they make use of a high level of encryption, they are secure.

Courtesy of the marriage between decentralized transactions and smart contracts, a whole new world of possibilities came to birth. One of these was the emergence of stablecoins.

Stabilizing Crypto Volatility – The Birth of Stablecoins and Bitcoin Casinos

Like most useful innovations, the emergence of stablecoins was driven by a real market need. Going back to the very beginning, cryptocurrencies were launched to address pain points in the existing financial system.

But while they excelled at being a medium of exchange, they failed terribly at being a store of value. Their values have been known to fluctuate by double digits on a normal day, and this makes them highly ineffective at the latter role.

Stablecoins provided the answer to this quagmire, as they have what it takes to minimize price movement. In order to achieve this, they are pegged to various assets such as commodities and currencies. Thanks to their fundamental framework, they provided a basis for enjoying all the benefits of crypto without the risk of value fluctuations.

Notably, Ethereum is the most popular blockchain protocol choice for the launch of stablecoins. In fact, at least 50% of all active stablecoins run on the Ethereum blockchain. Among the reasons for this popularity is the fact that it supports the integration of new digital assets without the arduous process of creating new infrastructure.

Ethereum makes use of the popular ERC-20 protocol that allows for interoperability between all assets launched on its blockchain. Some of the well-known ERC-20 stablecoins include Tether (USDT), Paxos Standard (PAX), True USD (TUSD) and USD Coin (USDC) among others.

Bitcoin casinos were at the forefront of the adoption of Bitcoin and other cryptocurrencies. The introduction of stablecoin support on gambling platforms took the whole concept to a new high. Previously, concerns about value fluctuations hampered widespread adoption of crypto at casinos.

But now, users can bet stable value at casinos with all the benefits of crypto. For instance, it is possible to enjoy matchless speed in making deposits and receiving payouts. Punters also get a level of privacy that is inaccessible when using fiat money. Some crypto casinos support completely anonymous gameplay, while others require minimal personal details for registration.

In the spirit of interoperability, Bitcoin gamblers even have the opportunity to migrate their Bitcoin to the Ethereum blockchain. Above all, the level of security availed by the use of crypto is remarkable. On one hand, users do not need to upload any sensitive personal information, and on the other, cryptographic security ensures unmatched safety.

What the Future Holds for the Dynamic Duo

Bitcoin has clearly come a long way since its inception and still holds plenty of potential for various industries. The casino industry was among the first to embrace crypto and has reaped significantly from the move.
With the evolution of the technology underpinning cryptocurrencies, from the introduction of smart contracts to stablecoins, the casino industry has continued to enjoy diverse benefits. The possibility of smart contract betting is equally promising and could take the bitcoin casino sector to a new high.

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Bitcoin

Navigating Bitcoin’s Impact: SOFTSWISS’ iGaming Industry Overview

Published

2 months ago

May 17, 2024

George Miller

Reading Time: 4 minutes

In March 2024, Bitcoin soared to a historical high, nearing 70,000 euro per coin. How does this impact the iGaming market? Being a tech company with over 15 years of experience and an innovator in crypto iGaming software development, SOFTSWISS shares anticipations in its quarterly crypto analysis.

Over 220 brands powered by the company engaged in crypto transactions during the first quarter of 2024, which is 12% higher than the previous quarter. SOFTSWISS experts analyse the data gathered from crypto-friendly brands by employing extrapolation, comparative, and correlative analysis.

iGaming Market Overview: Unveiling Anticipated Growth

The size of the global online gambling and sports betting industry is expected to rise significantly and exceed 170 billion euro by 2032, according to Statista. Based on SOFTSWISS data, the iGaming market has demonstrated a stable pattern of growth year after year.

In absolute terms in euro, the Total Bet Sum grew by 5.8% in the first quarter of the year compared to the last quarter of 2023. Analysing the year-on-year increase, comparing Q1’24 with Q1’23, the growth is more impressive, showcasing a 47.2% boost.

Simultaneously, the Total Bet Count, both fiat and crypto, displayed a slightly larger gain in the first quarter of 2024 compared to the previous quarter, surpassing 6.1%. The indicator’s year-on-year boost is much more notable, revealing a 57.2% increase.

The popularity of iGaming in recent years has been fuelled by its global reach and accessibility due to constant technological advancements. On one hand, the quality of internet connectivity continues to rise, while on the other, new payment methods are emerging, simplifying payment procedures.

The in-depth quarterly analysis, ongoing since the beginning of 2022, reveals that fiat bets are undergoing more substantial growth compared to crypto bets. In Q1’24, the Fiat Bet Sum increased by 6.9% compared to Q4’23, while the rise of Crypto Bet Sum was at 2.4%.

The more active growth of fiat bets led to a slight decrease in the share of crypto. In the first quarter of 2024, the crypto share in the Total Bets Sum settled at 24.4%, decreasing by 0.8 percentage points (p.p) compared to the last quarter of 2023.

What is the State of Crypto in iGaming?

Analysing crypto bets, it is crucial to highlight that almost 93% of them are facilitated through the in-game currency conversion tool, which is gaining traction. This mechanism allows operators to engage players with cryptocurrency assets in games initially tailored for fiat only. Operators that adopt such options are gaining more competitive advantages in the market.

While the Q1’2024 Crypto Bet Sum shows a moderate 2.4% growth compared to the previous quarter, the year-on-year analysis demonstrates a 20.8% increase. The Crypto Bet Count remained unchanged in Q1’24 compared to the previous quarter’s indicator. Simultaneously, the metric increased by 21.3% year-on-year. The figures speak volumes, showcasing a consistent interest among players in crypto gaming.

“The lack of a substantial increase in the number of crypto bets during Q1’24 can be partly attributed to the significant rise of the Bitcoin exchange rate during this period, leading players to be more cautious with their crypto bets. This trend mirrors the situation in the first quarter of the previous year when the Bitcoin exchange rate surged following a decline at the end of 2022,” comments Vitali Matsukevich, Chief Operating Officer at SOFTSWISS.

What Distinguishes the Average Crypto Bet?

The average crypto bet increased to 1.71 euro in the first quarter of the year from 1.66 euro in the last quarter of 2023. This growth correlates with a significant strengthening of the Bitcoin rate during the first quarter of 2024.

The average fiat bet remained steady at around 0.81 euro in Q1’24 and Q4’23. The average total bet stayed constant since the second half of the previous year and is equal to 0.93 euro.

Notably, the average crypto bet is double that of fiat. This indicates that digital currencies are preferred by higher-income players.

Why Did Bitcoin’s Share Drop?

The Top Five most operated digital coins in iGaming have remained stable during the last two years with minor changes in ranking order. The top still includes Bitcoin, Ethereum, Litecoin, Dogecoin, and Tether.

In Q1 2024, Bitcoin experienced a significant decline of 9.4 p.p. compared to Q4 2023. This could be attributed to the bolstering Bitcoin exchange rate and players exercising a more cautious approach towards it.

In contrast, the shares of other digital coins have increased. Ethereum and Litecoin showed growth of 4.0 p.p. and 3.8 p.p., respectively, during the same period. Simultaneously, Dogecoin rose to fourth place in the ranking, leaving Tether behind.

Vitali Matsukevich, Chief Operating Officer at SOFTSWISS, summarises: “The benefits of employing digital currencies, such as fast transactions and anonymity, still attract many players. Embracing cryptocurrencies in iGaming can boost operator profits despite their volatile nature.

As the Bitcoin rate is expected to strengthen after the Bitcoin Halving, the average crypto bet and projected gains may see a notable impact. During such promising times, it is crucial to have reliable and experienced partners to navigate the path to success.”

About SOFTSWISS

SOFTSWISS is an international tech company supplying software solutions for managing iGaming projects. The expert team, which counts over 2,000 employees, is based in Malta, Poland, and Georgia. SOFTSWISS holds a number of gaming licences and provides one-stop-shop iGaming software solutions. The company has a vast product portfolio, including the Online Casino Platform, the Game Aggregator with thousands of casino games, the Affilka affiliate platform, the Sportsbook Platform, and the Jackpot Aggregator. In 2013, SOFTSWISS was the first in the world to introduce a Bitcoin-optimised online casino solution.

Bitcoin

Should iGaming Be Worried About 2024 Bitcoin Halving?

Published

3 months ago

April 25, 2024

George Miller

Should iGaming Be Worried About 2024 Bitcoin Halving?

Reading Time: 2 minutes

In its LinkedIn newsletter, ‘The SOFTSWISS Special’, SOFTSWISS, a global tech expert with over 15 years of experience in iGaming, delves into the impact of Bitcoin Halving on the iGaming realm.

The recent historical moment of Bitcoin Halving took place on 19th April 2024. SOFTSWISS, a pioneer in crypto-friendly iGaming software, shares its insights and forecasts for how this event may shape the future of iGaming, shedding light on potential opportunities and challenges for industry stakeholders.

What is Bitcoin Halving?

The Bitcoin halving is a scheduled event that occurs approximately every four years or every 210,000 blocks. During this event, the reward for mining and verifying new blocks is reduced by 50%, resulting in miners earning only half the number of BTC per mined block.

Since its launch in 2009, Bitcoin’s mining reward has halved four times, occurring in 2012, 2016, 2020, and 2024. The recent April halving reduced the reward to 3.125 BTC per block. Such events are crucial for Bitcoin’s scarcity and inflation control, ensuring that the total supply never exceeds 21 million coins and aligning with its deflationary principles.

Historically, each halving event has resulted in a rise in Bitcoin’s price. This is attributed to the reduced supply and increased scarcity, although other market factors have also influenced these outcomes.

Exploring the Impact of Bitcoin Halving on the iGaming Industry

To provide an in-depth analysis of the Bitcoin Halving impact on iGaming, SOFTSWISS invited Bradley Peak, blockchain expert and tokenomics adviser, to share its anticipations.

Bets rise: The halving is expected to lead to an increase in Bitcoin’s value. If the trend of impressive price surges persists, Bitcoin-friendly iGaming brands could see a positive impact.
Crypto adoption increase: Implementing crypto-friendly models has the potential to boost player trust and transparency in iGaming. Additionally, it could rejuvenate unique gaming experiences like provably fair games and decentralised casinos.
Regulatory frameworks improvement: The recent Bitcoin halving could prompt regulatory bodies to reassess their stance on cryptocurrency gambling. This could lead to new regulations ensuring fairness, responsible gambling, and anti-money laundering measures in the crypto-driven iGaming sector.

Bradley Peak, blockchain expert, comments on the recent changes: “Any transformation will not be without its challenges. It is important to adapt – invest in employee learning and development, onboard crypto processing, and make sure your platform remains secure in the process.”

Explore the influence of the 2024 Bitcoin Halving on the iGaming industry in the fourth edition of The SOFTSWISS Special newsletter on LinkedIn.

About SOFTSWISS

SOFTSWISS is an international tech company supplying software solutions for managing iGaming projects. The expert team, which counts over 2,000 employees, is based in Malta, Poland, and Georgia. SOFTSWISS holds a number of gaming licences and provides one-stop-shop iGaming software solutions. The company has a vast product portfolio, including the Online Casino Platform, the Game Aggregator with thousands of casino games, the Affilka affiliate platform, the Sportsbook Platform and the Jackpot Aggregator. In 2013, SOFTSWISS was the first in the world to introduce a Bitcoin-optimised online casino solution.

Bitcoin

Bitcoin Miner celebrates two years of hugely successful collaboration with ZBD

Published

4 months ago

March 28, 2024

Adrienn Sarkany

Reading Time: 2 minutes

Bitcoin Miner, the world’s number one Bitcoin game, is celebrating two years of its collaboration with ZBD, a leading fintech company powering digital economies for gamers and developers. Since the partnership began, Bitcoin Miner has gone from a forgotten title with no players to becoming one of the largest play-and-earn games ever, with over 2 million lifetime users.

ZBD’s Lightning-powered payments technology enables developers to inject instant rewards into their games to boost retention and community engagement. Fumb Games, the studio behind Bitcoin Miner, partnered with ZBD in March 2022 to help revive its flagship title, enabling it to reward players with fragments of Bitcoin for playing the game as normal. From the outset, the integration of ZBD’s tech had a marked impact, leading to a 12x boost in 30-day retention. Two years on, Bitcoin Miner is achieving 40,000 daily active users, making it the biggest Bitcoin game by user count.

Besides the retention benefit of rewards, which leads to player retention that exceeds 6 months, the success of Bitcoin Miner has also been fueled by community-based features such as regular live events. The majority of Bitcoin Miner players are US-based millennial males who enjoy engaging with gaming communities, with weekly events leading to a 20% increase in revenue. As well as its own community of engaged players, Bitcoin Miner benefits from the ZBD app user base of more than a million gamers.

Paul West, Founder of Fumb Games, said “Bitcoin Miner has proven that US players love games that are fun, snackable and rewarding. The game is not only sustainable, but has soared to new heights since the partnership with ZBD. It’s no surprise that I’m very excited for the future of bitcoin and player-friendly rewarded games.”

Ben Cousens, Chief Strategy Officer at ZBD, said “The two-year collaboration with Paul and Fumb Games on Bitcoin Miner has been a quintessential success story for what we’re building at ZBD. It proves the value in offering rewards for gamers and the success of ZBD’s rewards and payments tech at making it possible at speed and scale. We will no doubt see further impressive numbers for Bitcoin Miner that cement its status as world’s number one Bitcoin game, and we also look forward to extending the potential benefits of Bitcoin rewards to more developers.”

In November 2023, Fumb Games also integrated ZBD’s technology in its idle tycoon RPG SpaceY. ZBD works with more than 100 game developers worldwide, including major brands such as Square Enix, and is also used by innovative adtech companies like Slice and AdInMo.