Since 2014, cryptocurrency casinos have been steadily building. Nowadays, there are various crypto casinos for players to try, with each one of them offering better security, safety, and anonymity compared to many of their traditional counterparts.
But, as ever in the world of cryptocurrency, there’s a catch. Cryptocurrency has many features that people expect – check out this wild coins casino review to learn about a few of them – but one of the features not many people banked on was the ability to change the crypto market.
So can they actually do it? And if they can, is that a good thing or a bad thing?
The Volatility Of Crypto
Before discussing the impact that crypto casinos have on the market, it’s first important to note how volatile cryptocurrency can be.
Every day, there is a high potential for significant downward and upward movements. One moment, BTC could be sitting at around $65,000, and the next it has plummeted down to $20,000.
No one can really tell where a specific coin is headed, nor the reasons for why it moves in the first place. Of course, there are instances where the reasons are clear.
Take the price of BTC right now. The reason BTC fell so far was a result of one of the most disastrous price crashes in crypto’s history: the price of stablecoin, LUNA, falling below the dollar at $0.00008.
This crash sent a shockwave through the crypto community, resulting in frantic sales and withdrawals that dipped prices down across the board.
This is a specific case, but every day, the price of cryptocurrency fluctuates, affected by everything from supply to demand, availability to unavailability, competitors to investors, social media, public opinion, trends, and who knows what else?
Volatility And Casinos
With this volatility in mind, it’s not out of the question to say that crypto casinos – which are worth around $4.6 billion collectively – have something to do with this fluctuation. For one, many casinos require certain coins – such as BTC, ETH, or DOGE – to play, and these interactions will induce movement in the market if they are significant enough.
Their impact can also be more unique and significant. Take Rollbit, for example. Between July and September this year, this crypto casino was responsible for the coin RLB – its native token – skyrocketing by over 400%. In August, RLB ended up outperforming nearly all other digital alt-coins, at one point rising over 103% in a single week.
Naturally, if an alt-coin begins soaring unexpectedly, the market will swing in its direction – as mentioned before, social media, trends, and public opinion have a big part to play in cryptocurrency volatility.
When RLB boomed in size, many other coins will have reacted, and this creates a domino effect in the industry that is hard to stop.
What Does This Mean?
Whether that’s a good thing or a bad thing is harder to answer. Just think, people out there had assets that were worth less because a casino was performing well.
If cryptocurrency wants to be the new, modern form of digital finance, then this will have to be something that is considered – you wouldn’t want your dollar to be worth less because Wynn Resorts had a strong month.
On the other hand, it demonstrates the power of the people. Crypto users decided that RLB should soar, and this is an indication of what a decentralized monetary system could look like. It is the individuals that decide what assets should be worth.
The strongest coins will always survive, and the assets not strong enough will hit the road – cryptocurrency is a risk, but it is a transparent risk, with its destiny decided by the users.