Cryptocurrency didn’t have a great year in 2022. In the first half of the year, the crypto winter started. This was marked by a collapse of popular cryptocurrencies Luna and TerraUSD. Things did not get any better in the last quarter of the year. Instead, several crypto companies filed for bankruptcy. With this ongoing crypto winter, punters wonder if they can still place sports bets using cryptocurrency on the FIFA 2022 games.
The Fall of FTX
There have been several crypto winters since bitcoin gained recognition. However, this winter has taken longer than analysts anticipated. While crypto enthusiasts expected an upward trend, things became worse for the industry. One unexpected event that worsened things was the fall of FTX.
In November 2022, after a spat with Binance founder Changpeng Zhao, FTX started facing financial difficulties. Also, in the same month, the company’s founder announced that it was insolvent and filed for chapter 11 bankruptcy.
Soon after another exchange, BlockFi followed suit and filed for bankruptcy as well. News like this has always affected the crypto industry. In this case, it impacts its ability to stabilize after a long period of volatility.
How This Affects Crypto Betting
The volatility cryptocurrencies suffer is one of the reasons delaying global adoption. Since the price changed dramatically, it can be difficult to get value for your bets or payouts when due.
According to reports, bitcoin’s yearly 30-day volatility increased to 117.04% in June 2021. This can have damaging effects on both sportsbooks and their customers.
crypto betting is still in its early stages and may be stifled by the challenges it faces. Several other issues plague the payment method, such as a lack of chargebacks since users cannot reverse crypto paymentse reversed and cases of match-fixing. In the latter case, it would be difficult to determine if individuals fixed a match since the bets are all anonymous.
Also, some countries have not yet legalized cryptocurrencies, so this poses a challenge for residents who want to use this method.
Benefits of Using Cryptocurrency to Bet on Sports Despite Crypto Winter
Regardless of the harsh crypto winter, betting with digital currency is still a great idea. For one, bookmakers update their prices in real-time, so users can follow them while placing their bets. Also, the trick most analysts recommend is using digital currencies that are pegged to the dollar.
Stablecoins such as USDC and USDT are perfect for such betting transactions. Players can rest assured that they are getting value for their funds. Analysts also recommend playing the long game and waiting for the value to rise again before exchanging the digital currency.
Several cryptocurrency enthusiasts prefer to bet with digital currency because it affords them anonymity. For some, however, it is simply more convenient than other available methods. Lastly, crypto bets are more affordable because they do not include fees, and some may prefer them for their fast transactions.
It is safe to place bets with crypto on the FIFA World Cup. Using stablecoins and the like can reduce losses and help punters keep the value of their money.
The Sports Betting Industry Continues to Grow
Sports betting is a lucrative industry across the globe. For example, in the United States alone, the industry has made $3.04 billion despite recently legalizing it. Sports betting generated this revenue after just six months in 2022.
In the previous year, this revenue was $4.3 billion. Compared to the recent year, the revenue is rising dramatically. As innovations like cryptocurrency make it easier to place bets, this growth is expected to continue in the future.
Morgan Stanley predicts that sports betting revenues in the United States will reach $8.5 billion in the next few years. Some analysts believe cryptocurrencies will play a significant role in making this possible.
It is especially important for regions where sports betting has not been regulated fully. Residents can use cryptocurrency since the government does not control it.
What Does the Future Hold for Crypto Betting?
Even if problems like volatility are likely to remain, crypto betting has a bright future. It has survived many years of volatility and still stands, so it is unlikely that anything will change soon. The benefits it provides make it convenient for the average cryptocurrency enthusiast. However, the industry still has a lot to do to promote growth.
Issues like the security of crypto funds persist. But analysts have recommended measures to solve these problems, including cold wallets and avoiding storage in exchanges. If these issues are resolved, crypto betting will gain more traction and possibly see global adoption.
*This article has been paid. The Cryptonomist didn’t write the article nor has tested the platform.