The world of online gambling has been revolutionized by cryptocurrencies in recent years. While Bitcoin was the first, there are many other digital currencies known as altcoins, offering various advantages and challenges for online gamblers.
In this article, we will explore what altcoins are, how they’re different from Bitcoin and Ethereum, what benefits and challenges they pose, and how online casinos are adapting to them.
What Are Altcoins?
Altcoins are cryptocurrencies other than Bitcoin and Ethereum, since most of these currencies are forked from one of these two. Altcoin stands for ‘alternative coin’, suggesting that they are different from or alternative to traditional cryptocurrencies.
Tens of thousands of altcoins currently exist, each with its own focus, features, and functions. Some are forks (using the code base and developing a new currency from there) of the Bitcoin and Ethereum blockchains.
For example, Litecoin was forked from the Bitcoin blockchain in 2011. Replacing Bitcoin’s consensus mechanism—proof-of-work (PoW)—with a proof-of-script (PoS) mechanism, which is quicker and far more energy efficient.
There are also altcoin types other than payment tokens, such as stablecoins, Utility tokens, and security tokens. Some serve specific purposes or target specific markets; others intend to improve upon what their predecessors lacked, adding innovation, diversity, and choice to their offerings.
The Rise of Altcoins in Online Casinos
As their popularity and public acceptance kept growing and many altcoins showed great potential to be utilized in online gambling, more and more gambling service providers started leaning toward altcoin support.
Whereas once many casinos conformed the dogmas surrounding cryptocurrencies and stayed away from crypto support, it was becoming apparent that doing so would only stop the industry from growing. It was high time they acknowledged altcoins potential to provide some major benefits, which we’re going to cover in a while.
Nowadays, almost every online casino accepts some kind of crypto payment method. Major fiat currency-based casinos support other cryptocurrencies besides Bitcoin as payment methods.
More importantly, we can see a huge paradigm shift as more and more blockchain-based altcoin casinos are emerging all the time, redefining the phrase “good gambling experience” all over again with their convenience, tight security, privacy, and transparency.
Benefits of Altcoins for Online Casinos
Here are some of the major benefits altcoins bring to the online gambling world. These have become prerequisites to an all-around great gambling experience in any online casino, whether fiat, or crypto. They are the reasons why a good number of altcoin casinos sit proudly among the best online casinos out there, according to industry experts.
Trustworthy
Altcoin casinos boast high levels of transparency. Their games are provably fair thanks to the integrated blockchain, which means you can verify their fairness..
Enhanced Security
With groundbreaking data encryption technology in place, altcoin casinos are one step ahead in providing a safe environment for players.
Championing Online Privacy
Blockchain is a mesmerizing tech where every transaction is confidential. For transacting and playing at altcoin casinos, the most you have to share is your email address when registering. After that, you can do everything anonymously.
Altcoin transactions in online casinos leave no virtual footprint that can be traced back to you. And withdrawals involve no KYC verification, keeping them fast and anonymous.
Little to No Fees
In the case of bank transfers (accounts and debit/credit cards), the bank charges a certain amount as a service charge. Also, you get what you win after taxes have been deducted. But altcoins involve no such third party, keeping the fees minimum and maximizing the benefit of the player.
How Online Casinos Are Adapting
Gambling providers recognize the diverse utility and vast potential brought to the table by altcoins. Traditional online casinos are trying to keep up by supporting a wide range of altcoins as payment and withdrawal methods.
Besides Bitcoin and Ethereum, some casinos accept tens of popular and reliable crypto options, such as Litecoin, Ripple, Dogecoin, Tether, etc. And to put the cherry on top, altcoin users can get some generous crypto bonuses and perks.
There has also been a surge of new altcoin casinos in the industry, and some of them have already earned a name for themselves, sitting comfortably among the best crypto casinos as 2023 gets closer to its end.
Challenges and Concerns Surrounding Altcoin Gambling
- Crypto still has some regulatory issues in many states around the world.
- As has been reported, the global cryptocurrency market is still dominated by Bitcoin. This also means there aren’t as many investors and, consequently, less market activity. So liquifying your altcoin assets may take comparatively more effort and time.
- The vast majority of the existing altcoins don’t have much potential. And the fact that some altcoins have previously failed and sunk the investments of many is concerning.
- Altcoins are subject to market volatility, so it can cost a lot if someone owns a lot of coins and the market price of the coin drops dramatically.
The Future of Altcoins in Online Casino Gambling
2022 saw the world of crypto collapse as major crypto trading company FTX crashed, following drastic consequences. This was a big instance that showed how volatile and risky this market can be.
In online casinos, altcoins that have proper blockchain functionality will survive and receive wider attention, which will turn the few relevant cryptos into bigger marketplaces. And the services offered by these casinos will become more polished and optimized.
Moreover, the extra functionalities brought by altcoins, such as provably fair gaming and smart contracts, will turn the tide and most probably make crypto the bigger player in the game, ahead of their fiat counterparts.
Final Thoughts
As the crypto world goes through the cycle of collapse and rebirth again and again, the process will eliminate the irrelevant coins, and only the fittest of them will survive. This will bring a more polished experience for the users and more attention to themselves.
As crypto and/or online gambling enthusiasts, you should be hopeful because a brighter future for both of them awaits. So, pack your gear and do your research to make the right choice when thinking of gambling crypto.
