Crypto Gambling is simple enough for punters, but the continuing phenomenal growth of bitcoin has been complicating matters for bitcoin casino operators. As it is, the hazards of accepting bitcoins and altcoins as deposits are manifesting themselves in different ways.
Most crypto gamblers are realizing the practicality of holding on to their bitcoins and ethereum. As a result, they are now withdrawing their crypto deposits instead of letting them stay in their crypto gaming accounts.
After all, they would be better off trading their crypto money while the demand is still high; as opposed to staking them as betting money on high-risk casino games. Now here’s the thing, what if there are more requests for crypto withdrawals than crypto deposits? How will the occurrence affect crypto casino operators?
How Crypto Casinos are Affected by the Soaring Bitcoin Prices
On their part, bitcoin casinos have to meet the withdrawal request also in digital coins, so they can fulfill the “smart contracts” covering the agreement between crypto casino customers and operators.
However, the influx in crypto withdrawals and the absence of crypto deposits are draining the bitcoin casinos’ own BTC hoards.
As a consequence, some operators have no choice but to buy BTCs at the current high price, which today has soared way higher than many had anticipated.
The same trend is happening in Ethereum casinos, and in fact has greater effect. Mainly because ethereum (ETH) casino players have to pay fees to cover the costs of GAS associated with transactions processed in the Ethereum Virtual Machine (EVM). ETH miners require the GAS fees, and since the volume of ETH transactions is likewise increasing, the GAS costs are rising as well.
The Gas cost and the EVM are factors that distinguish the altcoin from BTCs. While crypto casinos accepting BTCs can have their transactions processed on a decentralized blockchain ledger, ETH involves processing via the decentralized ethereum blockchain machine. In order to have an ETH transaction processed securely and successfully in the EVM, payment of GAS fee or gwei that is equivalent to a small fraction of the ETH value to be processed, is required.
Yet ETH miners can refuse to process ETH transactions between crypto gamblers and casino operators if they think the fees they will collect, are not worth their time and trouble.
While there is still a lot to be understood about GAS fees and EVMs, a rise in the cost of ETH processing will likely result in the increase of GAS fees collected from ETH casino players. If so, ETH asset owners will think twice before using their ETH as gambling money. More so now that the altcoin is being anticipated as the next important crypto money after bitcoin.