In the nascent cryptocurrency industry, Bitcoin was the judge, jury, and executioner with the full power to shape the upcoming era of digital currency. Fast forward to 2023, and its power stands unrivalled, despite the growing number of cryptos around.
Bitcoin (BTC) is the world's first decentralized cryptocurrency and payment method created on a blockchain, a distributed public ledger where all data is stored. Its purpose was to create a safe peer-to-peer transaction method that would revolutionize the entire notion of financial transactions. Ultimately, it did much more than just that.
No industry has benefited more from the rise of BTC than sports betting. Bitcoin sports betting sites could now offer punters a secure, fast, and low-cost method of making deposits and withdrawals. Bitcoin's role did not stop there.
Join us as we explore the future of Bitcoin sports betting, current trends, and its implications for bettors and operators.
Predictions and Trends for Bitcoin Sports Betting
Bitcoin has become a staple in online sportsbooks throughout the globe. For one, as a decentralized currency, BTC allows players in jurisdictions with no clear betting laws or that ban it altogether to access their favourite offshore sites and make bets with peace of mind.
What's more, players can now enjoy the benefit of fast cashouts. The usual BTC transaction takes less than 10 minutes to be verified on the blockchain, so it never takes long before you can get hold of your rightful winnings.
The apparent advantages of Bitcoin gave rise to sports betting platforms powered solely by the use of BTC and other cryptocurrencies.
First of all, crypto transactions are anonymous, allowing users to complete transactions without having to reveal their identities through cumbersome KYC policies. Secondly, crypto betting's security is airtight. Military-grade encryption systems secure all payments, driving out any sense of fraud from the industry.
However, it's the innovation in the field of Bitcoin and blockchain that is going to redefine sports betting of the future. Namely, we are going to see many smart contract-based betting platforms in the future where users will be able to use BTC on the outcome of any sporting event and take money directly from the opponent should their bet is a winning one. Smart contracts are software programs that operate on a blockchain and are used to carry out agreements among members without using a third party. These smart contracts are a basis for future decentralised sports betting applications.
BTC sports betting sites are also relying heavily on the implementation of AI systems. These systems generate more reliable and accurate odds and facilitate automated trading on sportsbooks.
On the other hand, bettors can use AI to analyze the available data and create better predictions of outcomes they can leverage against the sportsbooks.
Potential Challenges and Risks for Bitcoin Sports Betting
Bitcoin sports wagering is not without hurdles, though. The biggest obstacle to its even wider influence and reach is the lack of a regulatory framework in most countries. Bitcoin is legal tender in only two countries in the world. Everywhere else, it's treated as a digital asset at best, all banned completely. The lack of understanding of how BTC works and constant pointing out its flaws by the media, such as the lack of central authority, dissuades bettors from using it.
Still, change is already on the horizon. Since BTC goes hand in hand with sports betting, chief regulators like the Malta Gaming Authority and the UK Gambling Commission, with respect to the laws that apply in these jurisdictions, have laid out the ground rules for their licensees to accept BTC. According to these rules, players must comply with KYC policies and reveal their identities, contrary to the anonymity feature that BTC players so cherish. However, it still lets them use crypto to place their bets on football, basketball, rugby, and any other betting market.
Another critical challenge that Bitcoin faces is its volatile nature. In 2022, we saw a sharp decline in its value. In fact, at the end of last year, it was only fourth a fourth of what it was the year before, largely thanks to the crash of the cryptocurrency exchange FTX.
There are no price guarantees for Bitcoin. The market is under the influence of supply and demand, and these monumental changes can drastically affect liquidity. The uncertainty that shrouds its value puts off a lot of bettors as it can also directly impact their winnings. Imagine placing a bet and staking a certain amount of BTC only to find out its price had dropped before your bet was settled, and now, even if you won, you wouldn't get as much as you'd anticipated.
Bitcoin Sports Betting Revolution: An Inevitable Progress
Not even doubting Thomases among financial experts can vitiate the potential of Bitcoin in the sports betting markets. The world's leading crypto is more than just a vessel for making financial transactions between players and operators.
Decentralized sports betting platforms are becoming all the rage now, and their foundations are blockchain technology and cryptocurrencies. Also, more and more gambling jurisdictions are looking to implement Bitcoin as its legality no longer remains a matter of question.
One area of sports betting where Bitcoin is already widespread is eSports. Not only are investors dumping loads of cash into eSports teams and competitions, but athletes themselves are making investments using Bitcoin. Even the prizes for the winners are paid in BTC and other cryptos.
Bitcoin is also driving the expansion of the mainstream NFT market in the sports betting world. Bettors are starting to receive NFTs through bonus and loyalty schemes run by sportsbooks which they can later exchange for Bitcoin on the cryptocurrency exchange.
Conclusion
Today, blockchain technology and Bitcoin are enabling a new breed of sportsbooks that offer greater transparency, faster payments, and better overall security. New decentralized betting apps are coming in hot and backed with AI systems; they will be game changers for the future of betting.
