iGaming Sector Nods to Bitcoin’s Potential Role But Points Out Risks
The iGaming Super Show 2014 has not only staged the largest conference yet in the iGaming world, but it has also managed to create mini-conferences that talked about interesting topics, several of which are about the role of Bitcoin and alternative cryptocurrencies in iGaming.
Held in Amsterdam, the four-day exhibition and conference saw the increase in the number of business operators becoming more interested in what virtual currencies can contribute to the gambling market. In fact, the iGaming 4 Business Conference featured five sessions that focus on the introduction of Bitcoin, as well as its economics, risks, and future in the industry.
According to a SoftSwiss-sponsored conference, Bitcoin as a payment mechanism has a strong potential to benefit and provide solutions to iGaming companies, but problems involving such method should not be ignored.
As emphasized in two other conferences, Bitcoin, along with other alternative currencies, has clear benefits to iGaming operators, but it also mirrors risks on the part of the online casinos. The risks raised involve the digital currency’s fluctuating value and legal and regulatory issues.
While most iGaming operators and the Bitcoin community are optimistic about the significant role Bitcoin will play in the industry, Jonathan Levin, co-founder of Coinometrics and a postgraduate economist at the University of Oxford, believes the digital currency will not last that long, even calling it to last for only 16 years from present.
“I’m not that very bullish on the long term future of Bitcoin,” he said during an interview. “Bitcoin will be there for the next two to three years and we’ll see the evolution and we’ll see some technological developments in that time.”
Levin, who talked about the economics of Bitcoin in one of the iGaming conferences, cited network security issues, its deflationary nature, and problems in the centralization of mining as some of the reasons Bitcoin will fail to emerge as a mainstream currency.
Nevertheless, Bitcoin is regarded by many as a solution to improve the payment processes that currently exist in iGaming companies, especially if the payment services of Bitcoin casino and betting sites are used as the primary bases.
In the event the digital currency and other cryptocoins are adopted in this sector, Bitcoin players may not only bet on Bitcoin games, but they can also experience wagering in traditional online casinos.