The demand for crypto casinos has quadrupled in the past couple of years. And with Bitcoin prices soaring, could there be a correlation between the two? Let us explore a bit in detail. Bitcoin casinos are the hottest properties in town and a vast array of factors fuel this trend.
The online gambling industry went through a vast revamp during the pandemic and crypto casinos are cashing in on the trend. While the industry currently operates from a grey area due to the lack of formal recognition, crypto casinos have been thriving quite well.
The Rising Demand for Bitcoin
While Bitcoin was introduced almost a decade back, it only gained influence in the last half-a-decade. Starting 2021, Bitcoin prices are nearing the $35,000 mark, while the rally began from $20,000 just a while back. On the downside, cryptocurrencies are highly volatile, and a prime example is the faltering prices back in 2018 when investors almost wrote off Bitcoin as a viable asset.
Fortunately, that phase has passed and the entry of institutional investors has changed the game for good. Investors like MicroStrategy aren’t in the game for the short term, simply looking to pump and dump BTCs. Instead, they’re here to stabilize the market for future investors.
This strategy clearly seems to be working as Bitcoin prices are shooting through the roof even as global fiat currencies stutter. Bitcoin also serves as a valuable asset, which is surprising considering its history of being volatile. Investing in Bitcoins has time and again proven to be an interesting choice as the pricing can be quite dynamic.
Are Crypto Casinos Responsible for the Rising Bitcoin Prices?
As we all know, Bitcoin does not work like a fiat currency and the lack of bureaucracy makes crypto transactions transparent. And despite the bumps along the way, BTC’s stature has grown over the years. Experts believe the demand is set to grow even more in the upcoming days as mining gets tougher.
Crypto gambling increases massively every time Bitcoin prices soar and the historical rally of 2017 lays testament to the fact. In fact, today, crypto sports betting has the highest demand ever. Although the sudden drop soon after caused investors heavy losses, punters that chose to hold on to their existing tokens and ride out the storm remained largely unaffected.
Fortunately, the Bitcoin market has stabilized since the last major bear rally and the prices continue to soar. An alternate theory claims that punters lower the pace every time BTC prices fly through the roof. People prefer to hold on to the tokens as an asset instead of wagering potentially large sums.
Going by this theory, a bull rally in the crypto market isn’t great for BTC gambling. However, it is difficult to ascertain the legitimacy of the claim as most punters are small-scale holders and it wouldn’t make much sense to store the limited volume of tokens for a long time.