Crypto Vs. Fiat Money: What Is A Better Option For Online Gaming?

Nov 23, 2023

Photo by Traxer on Unsplash

Cryptocurrency adoption is increasing in the online gambling space. Although still not as popular as fiat options, many more online casinos are introducing crypto payment methods for customers. These options are usually in addition to fiat payment methods, so the casino can accommodate players from either side of the divide.

According to some estimates, gamblers wagered about $4.5 billion worth of Bitcoin between 2014 and 2021. In 2022 alone, the online crypto gambling market was worth $3 billion in the year’s first half and more than doubled to $6.3 billion in the second. For options, Bitcoin is the most used crypto asset for gambling, holding 26.6% of the market, with Ethereum following closely at 15%. Estimates already suggest that the value of crypto bets will have hit $93 billion when 2023 ends. As crypto gambling rises continuously, it is important to consider whether or not digital assets are a better option for online gambling – but all these players can’t be wrong, can they?

Security

Both types of payment offer players high security. Since fiat money gaming platforms must adhere to financial regulations to handle money, they must comply with methods considered safe by law. For crypto casinos, the security and immutability of the blockchain add a high level of security and transparency, since all transactions are publicly accessible and cannot be altered.

Popularity

There are several advantages to gambling on a crypto-supported platform. However, there are still more fiat options among USA casinos than there are crypto sites. Nearly every online gambling site accepts fiat currency via multiple different banking methods like direct transfers and credit cards, and third-party wallet options like Skrill or PayPal. Some crypto casinos will also accept fiat and ewallet payments, but not all fiat casinos will accept crypto.

Anonymity

Players who prefer to maintain some level of anonymity prefer crypto casinos to fiat options. Unfortunately, government regulations around fiat money transactions make it nearly impossible for players to enjoy any anonymity. On the other hand, cryptocurrency transactions are anonymous and allow players a level of privacy not possible with fiat money sites.

Transaction Fees

Transaction costs can sometimes take up a considerable chunk of a player’s bankroll. In addition to the initial deposit, fiat money withdrawals can be expensive because of the intermediaries required for these transactions. These costs could be significantly high if the deposit requires a cross-border transaction. Crypto solves this problem because the cost of a transaction is usually low, especially when the network is uncongested.

Supply

Since the government regulates the production and distribution of fiat, the Treasury Department’s Bureau of Engraving and Printing can print as much as the government decides is necessary. However, there is only a finite amount of cryptocurrency. For instance, the Bitcoin blockchain will only accommodate a maximum of 21 million Bitcoins. So far, 19.5 million Bitcoins are already in circulation, making crypto gambling less impacted by inflation.

Conclusion: Playing with Crypto or Fiat?

Outside of online gambling, crypto provides several advantages to online gaming. For instance, microtransactions required to buy new skins, weapons, and other accessories in video games are easier using crypto because of the blockchain’s speed and cost-effectiveness. In addition, transactions might be easier because if the online gaming platform supports Bitcoin, then gamers may be able to connect nearly any supported Bitcoin wallet to their accounts. As adoption increases, crypto’s use in gaming could see more acceptance and may improve such that players find it easier to choose depending on the benefits of each method.

SHARE THIS POST