It seems that we are in yet another “crash” year for cryptocurrencies. Ever since the rise of Bitcoin in 2009, we have seen these phases in the crypto market. Every 2-3 years, the speculation and investment frenzy around crypto reaches a fever pitch only to implode. 

In November 2021, the value of one Bitcoin was at an all-time high of $68,000. Eight months later, that value has plummeted to just under $20,000, wiping more than $1 trillion in value from the cryptocurrency markets. 

As the major cryptos enter a free fall, businesses related to these coins are in dire straits. This seems to be a difficult time for crypto casinos as well. But is the connection that straightforward, or is something else altogether? Let’s explore and find out. 

What is a Crypto Casino?

For the uninitiated, a crypto casino is any online casino that accepts payments in cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Tether. The operations are nearly identical to regular online casinos – you visit the casino website using a PC or mobile app to play classic casino games and slots. 

However, some notable differences set apart a crypto casino: 

• You cannot use a debit card, net banking, or other traditional payment methods at a pure crypto casino. (Although, there are casinos offering both fiat currency payments and crypto payments. These are known as “crypto-friendly” online casinos). 

• A crypto casino is very privacy oriented – they do not conduct background checks of players or seek to ‘Know Your Customer’ ID documents. At a regular casino, they’re bound by law to verify your age and ID before accepting your registration. 

• Many true-crypto online casinos operate without a valid license. Gambling authorities want to enforce KYC checks and age verification. This is directly opposed to the privacy advantage of pure crypto casinos. Many crypto-friendly casinos operate with a license from less strict authorities like Curacao eGaming. 

• With a crypto casino, you can enjoy instant withdrawals and deposits to your crypto wallet. At regular online casinos, you often have to wait at least 2 – 7 days for the money to get dispatched to your card or account. 

• Many major software providers design their slots and games to accept bets only in Dollars, Euros, and other fiat currencies. You won’t find games from top brands like NetEnt and pure-crypto casinos. 

How Bad is the Current Crypto Crash?

As already noted, frequent market crashes are nothing new in the crypto sphere. However, one quirk of the industry is that regardless of the crashes, the value of the market has only increased over time. 

Back in 2017, before the last major crash, the value of Bitcoin peaked at around $18,000, before falling to a low of $3200. When we look at the 2022 prices, the low is still above the highest value posted by Bitcoin in 2017!

What does that tell us? Enormous amounts of cash have been pouring into the crypto markets these last 4-5 years, creating a bubble that was bigger than anything that came before. Looking at it from this perspective, yes, this current crash is probably the worst in terms of value wiped out from investor pockets. 

It has also led to the total wipe-out of a major cryptocurrency project called Terra. The crash of Terra and its stable coin Luna has sent shockwaves through the industry. Many experts are predicting a longer crypto winter than ever before. 

Bitcoin Casinos Don’t Follow the Same Trend

Most businesses that deal in crypto in some way are battening down their hatches to survive the ongoing storm. Many have downsized activities and fired staff. Ironically, Bitcoin casinos didn’t follow suit when it came to this digital currency crash, quite the contrary. In fact, new Bitcoin casinos have been launching every month this year, as if it is business as usual.

This is not without historical precedent – gambling is generally accepted as an industry that is not wholly affected by bad turns in the stock market or the wider economy. When people experience financial losses due to a market crash/recession, it affects the gambling industry in the following ways:

• Habitual gamblers will continue playing regardless of the economic situation
• Some people will turn to gambling in an attempt to reverse their fortunes and make money quickly
• Recreational players who do gambling as a Vegas-style vacation may stop it temporarily

As you can see, a recession can affect casinos both negatively and positively. But the net result is at best, stagnation in terms of growth. They don’t routinely suffer heavy losses. And Bitcoin casinos are even more well positioned to benefit from the crypto crash. 

How Bitcoin Casinos can Benefit from the Crypto Crash

Large resort casinos have massive expenses for facilities maintenance, salaries to staff, entertainer fees, and so on. Online casinos have ridiculously low overhead costs in comparison. Ever since the COVID crisis in 2020, the online gambling business has been growing as though it’s pumped up on steroids. 

With land-based casinos around the world in lockdown mode, gamblers flocked to online casinos, including crypto casinos. Since these casinos only accept crypto, they were inaccessible to many players who couldn’t afford to buy Bitcoin or other tokens at inflated prices. 

However, when prices crash, smart people buy Bitcoin in anticipation of future gains. This will bring a whole new segment of crypto owners. A crypto casino may suffer a temporary slowdown in profits during the current crash – but in the longer term, it will benefit more from an increase in the number of crypto users. 

So, to answer our original question – no, crypto casinos will not decline due to the Bitcoin crash and may even see growth going forward. If you haven’t tried playing yet at a crypto casino, now might be the time to join the trend.