If you ask Filipino gamers about their opinion on cryptocurrency, they’ll probably give you different answers. Some may own it, while others may have sworn off it after a bad investment left them with less money than they started with.
Their views won’t likely change when you tell them that cryptocurrencies are making their way into the gambling industry. Its biggest fans are likely aware of this possibility. At the same time, a shrug and an eye roll will be the most positive response you can get from a bitcoin detractor.
COVID gave digital assets such as crypto and NFTs the perfect environment to rise in popularity. However, 2022 saw these digital assets trip. The mess cost investors millions; some were even left in debt.
However, cryptocurrency remains strong with the recent rise of crypto gambling. There is an increase in websites that allow players to gamble with their crypto, which provides a new dimension to the already-vibrant industry.
This OKBET piece will discuss the rise of this phenomenon and whether it has the staying power to remain relevant after the crypto crash smeared the once-shiny reputation of digital currencies.
Defining Crypto, Crypto Gambling, and Crypto Casinos
Cryptocurrencies are digital assets created and secured through cryptography. These assets are decentralized, and the information can be accessed from millions of computers that have access to the blockchain that stores the critical information of the currency.
Crypto gambling functions like what its name suggests: it’s gambling that allows users to play with their cryptocurrency of choice. It allows players to instantly deposit and withdraw their money without going through various checks imposed by casinos and operators that deal with fiat money.
It also became an ideal entertainment medium for players who want to secure their privacy. This marriage of traditional entertainment and technology quickly emerged as one of the most popular ways to use cryptocurrencies as they continued to gain steam as a popular investment medium.
Crypto casinos allow their players to cash in, bet, and withdraw their winnings using any crypto stored in their digital wallets. Bitcoin, Ethereum, and other popular cryptocurrencies are usually traded in these casinos. However, they will ideally allow successful cryptocurrencies to be traded on their platform.
Why Players Choose These Casinos
The biggest reason some gamblers switched to crypto casinos is the benefit of privacy. They don’t have to go through the Know Your Customer process to be able to play their games. Crypto doesn’t need the identity of its owner verified to be transacted, after all.
The security and reliability of funds are another huge reason for players to make the jump. Since the platform is decentralized, it’s hard for hackers and other players to edit the details of the digital assets. Casino players can gamble without worrying about their money if they use cryptocurrencies.
The possibility of playing casinos based in other countries is another lucrative edge that some gambling vets can’t miss out on. Since no governments have total control over cryptocurrencies, players can play in casinos based in countries that they don’t usually have access to.
Crypto casinos are also easier to access for tech-savvy generations. Millennials and Zoomers are comfortable engaging in new technologies. These new gambling establishments allow them to win with their crypto investments.
The Dangers Gamblers May Face
Data privacy is one of the greatest gifts crypto gambling can offer. However, its lack of regulation makes it difficult for governments to combat money laundering should criminals use these platforms to clean their money.
Another issue is legality. The Philippines heavily regulates the gambling industry. The Philippine Amusement and Games Corporation (PAGCOR) only have a short list of online betting operators they allow to operate in the country. It may be risky for Filipino players to invest in crypto casinos if they’re not sure they’re breaking the law.
Another danger is the fluctuations of digital currencies. The crypto crash of 2022 saw values of various crypto dip across the board, costing investors millions in the process. The bankruptcy of FTX saw the once-gleaming reputation of crypto ripped to shreds.
The biggest threat that looms over these casinos is the possibility of players suddenly losing their hard-earned money to hacks or theft.
The most prominent example happened a year ago when the NFT game Axie Infinity experienced a hack that saw the game lose $600 million. Filipinos who used the game to earn money during the pandemic were found thousands of dollars short after the hack.
It’s important to note that NFTs are different from crypto. The latter’s remains the same even if the owners change hands. Meanwhile, authenticity is the biggest selling point of NFTs.
However, that doesn’t mean that crypto casinos are safe from attacks. Hackers can still target players where it hurts, and poorly protected online casinos spell great trouble to the player base.
Should You Try Out Crypto Gambling?
Despite the setbacks crypto experienced in 2022, many still believe in the potential of cryptocurrency and crypto gambling. Gamblers with significant investments in the technology will want to try it out at least once.
However, dabbling in crypto is a gamble in itself. Filipino gamers who aren’t that forward with risking their money would be better off playing at legitimate online casinos. These establishments offer the same thrills without the unpredictability that crypto brings to the online gaming space.