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How the recent crypto crash could affect online casinos

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As the cryptocurrency market deals with a major crash, the iGaming industry is preparing for any possible backlash.

Much like online gambling, cryptocurrencies had a meteoric rise in popularity over a short period of time. With that rise comes many possible shortfalls and crypto is currently in the midst of a crisis.

Online casinos have started to welcome cryptocurrencies more and more, leading to the rise of many Bitcoin Casinos as well, and changing the face of how players deposit, withdraw and play in general.

As the crypto market struggles to find its feet after a major crash, the question on everyone’s lips is: how will this affect the iGaming industry and crypto casinos ?

Crypto crash

Over the space of a year, cryptocurrencies have been nose-diving in value, with much hitting rock bottom in a short time. Overall, the market cap has dropped about $1 trillion this year with most cryptos now worth less than half of their top value.

According to industry experts, the trigger for the crash appears to be a huge sell-off by investors. Selling is not unusual in markets such as this but the massive shift of crypto (due to fears of high inflation rates) has even caused certain crypto lending services to pause withdrawals.

“The market is expected to remain choppy in the coming weeks and countries around the globe continue to report high inflation numbers. The current dip in the crypto prices allows investors to buy crypto at 2021 prices and we expect the seasoned investors to take advantage of the dip,” said Shivam Thakral, CEO of crypto exchange BuyUcoin.

It’s expected that many smaller altcoins may not survive this crash at all. Even those that had just started to gain ground could fall victim to a price crash so severe that they can’t recover.

Online gambling on the rise

With staggering losses on the cards for crypto investors, many wonder how this will affect crypto casinos and online casinos alike. As casinos are only just starting to embrace online casinos, a setback like this could be harmful.

What makes the online casino market so interesting is that amidst the chaos, crypto casinos continue to grow.

As players look for new casinos to experience, the idea of spending cryptocurrency doesn’t seem as daunting. While some may look to hold onto their currencies as investments for when the market gains ground again, others will see it as a time to jump ship entirely. And what better way to spend your funds could there be than to place a few fun bets?

For those who own smaller altcoins, and the possibility of a total crash for these coins being on the cards, it wouldn’t be surprising to see more players betting with these currencies rather than lose them for nothing.

While the crash is scary for investors, those who’ve deposited at crypto casinos can rest assured that their currencies are safe and can be withdrawn via any of the available methods. This means that casino customers can still play their favourite casino games with peace of mind.

Published: June 14, 2022

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Article by Stelly

CasinoWow Contributor

Hey there! I am Stelly, and happily, I'm part of CasinoWow's content team. It excites me to be able to write and share with all gambling enthusiasts unbiased reviews and news that contribute to the gambling community and industry. Thankfully, I also have the chance to help you make an informed choice for casino brands and games, as well as provide interesting guides and news.

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