Cryptocurrencies, such as Bitcoin, Ethereum have gained increased use in the world of online betting. eSports betting specialists LOOT.BET highlighted this growing trend in a recent survey.
The company found that digital assets have seen increased use for betting during the Covid-19 pandemic, mainly due to this asset class’s resilience during times of economic crisis.
While the traditional markets have taken a hit, many bettors have moved away from mainstream payment methods, like credit cards, e-wallets. They now prefer to use crypto at their favourite sports gambling sites.
The study by LOOT.BET found that gamblers using BTC and ETH are the riskiest in the betting space when it comes to eSports investment. The average client at the betting site client bets 100% more when using BTC and about 50% more when using ETH.
These betting patterns indicate that digital asset gamblers are taking more risks, possibly because of crypto’s anonymous nature and ease of transactions.
Anonymity Fuels Crypto Use in the Betting Sector
Crypto and blockchain tech offers various benefits to individuals looking to bet on eSports, explaining why their use in the sector is exploding.
A key reason why more bettors are turning to crypto is the anonymity, and fast transaction speeds associated with this asset class. Indeed, a gamer can privately place a bet within fractions of a second.
Traditional payment methods, specifically credit cards, have their drawbacks. Typically, the banks that issue credit cards reject betting deposits at a higher rate than other payment methods. The rejection rate goes even higher for deposits at unregulated gaming sites.
Crypto like BTC and ETH aren’t subject to such rejections since they are decentralized and not under any bank or government control.
Furthermore, an increasing number of betting sites are accepting crypto, with even less-heralded digital assets like Litecoin gaining acceptance in the gambling space.
Younger Folks Are into Both eSports and Crypto
Paul Brel, Head of Communications at LOOT.BET highlights one key factor that is fuelling the hike on standard bets for crypto users.
“The widespread use of BTC and ETH in esports betting can be explained by the fact that both cryptocurrency owners and esports fans tend to be young, progressive, and tech-savvy,” he explained.
Digital currencies are growing in popularity in the betting sector as more people adopt contactless payments during the global pandemic.
As the crypto economy evolves, the use of smart contracts in the gambling sector has also increased. Tron, in particular, has made waves in the betting space, with a significant portion of its trading volume coming from casino dApps.
It now appears that the eSports market has possibly never been in a better position to keep gaining traction in the wake of the coronavirus pandemic.