Crypto Value Surges! – Its Effects On Casinos And Players

The cryptocurrency market is experiencing a huge surge, with Bitcoin and other digital assets reaching values never seen before. Bitcoin is close to surpassing $98,000, and is fast approaching the $100,000 milestone. As well as making some people a lot of money, the increase in value of Bitcoin has a big impact on the growing crypto gambling industry.

Crypto Casinos On The Up

Crypto casinos have seen a fast growth in recent years, helped by more and more people around the world holding cryptocurrencies. The crypto gambling market grew to $250 million in 2024 – a fivefold increase from 2019 with the increase in popularity mainly down to the benefits of using cryptocurrencies, including privacy, faster transactions, and reduced costs.

The recent surge in Bitcoin’s value has boosted interest in crypto gambling even more. With the value soaring, players are increasingly using Bitcoin and other cryptocurrencies for deposits and withdrawals.

Impacts on Players

For players, the surge in crypto value is both good and bad news.

1. Higher Returns on Winnings:
   With Bitcoin prices near historic highs, players who win and withdraw their earnings in crypto may see their winnings multiply in fiat value over time. For example, a Velobet Casino player who cashed out Bitcoin at its recent peak of $99,000 would have received significantly more profit compared to a player who withdraw earlier when the value was lower.
2. Volatility:
   Despite the potential gains, cryptocurrency’s volatility is a big risk for players. A change in value of Bitcoin, or other crypto, could all but wipe out the value of a player’s winnings before they have a chance to convert it into fiat currency. High-stakes players in particular need to be very cautious and aware of the current value of the crypto market.
3. More Casinos:
   The rising value of cryptocurrencies has made them more mainstream, and has attracted new players to the many online Bitcoin casinos. Many of these players are looking to take advantage of features such as decentralisation, faster transactions, and privacy, which traditional fiat casinos cannot offer.

Impacts on Casinos

Like with players, there are both positives and negatives with the rising value of crypto for casinos.

1. Increased Player Activity:
   Higher Bitcoin prices often result in a rise in activity, as players have more money. Casinos generally benefit from a rise in crypto value, as more deposits and bets generally results in an increase in income.
2. Liquidity Risk:
   Online casinos which hold large amounts of volatile cryptocurrencies as well as fiat, need to manage their finances well. A downturn in the market could impact their ability to pay out large sums to winning players.
3. More High Rollers:
   Higher crypto values can attract high rollers who have seen their financial portfolio increase. This is good news for crypto casinos who are able to offer large bonuses to attract and retain these high-stakes players.
4. Increased Competition:
   As more players flock to Bitcoin casinos, Ethereum casinos, and other crypto gambling sites, the number of casinos to launch increases. This results in greater competition for the brands and we could see the industry develop quickly due to casinos having to offer additional features such as unique games, bigger bonuses, and higher quality customer service, to stay ahead.

Why Is Crypto Going Up?

The recent increase in the value of Bitcoin and other cryptocurrencies was sparked when it was announced Donald Trump won the US Presidential election. The Trump administration is expected to be more crypto-friendly than Biden which is a positive sign for crypto holders and developers.

Trump had previously voiced his plans to remove Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), when he took office. It was announced on Wednesday 21st November that Gensler would be stepping down from his role on 20th January 2025 – Inauguration Day. Gensler has for a long time been a critic of the cryptocurrency industry and has been involved in the widely discussed Ripple lawsuit which has been ongoing since December 2020. As a result, XRP, like many other cryptocurrencies, has surged in value over recent days to it’s highest level since 2021, with holders encouraged that Ripple may finally win the suit which may further boost the value of XRP.