The very first time when Bitcoin entered the financial space seemed like just an experiment. The ideology of this new form of money came into the market during the peak of the 2008 financial crisis.
Bitcoin was a brand-new form of money with no central governing body. Instead, it utilized a transparent, distributed ledger system for recording transactions. It only needed a network of persons to keep things flowing.
Bitcoin has since come a long way and today it is valued at over $10,900. However, the journey there has been just smooth.
Bitcoin ‘Bubbles’ and Obituaries Rock Cryptosphere
Because of its high volatility, the reigning king of cryptocurrency has been dismissed many times along the way. The first spike in Bitcoin’s value happened on July 12, 2010. At the time, price spiked tenfold from $0.008 to $0.08. The following year, it hiked more ridiculously, reaching a new peak of $31.
A more wildly price hike came in 2013. After skyrocketing to an all-time record over more than $1,000 in November in 2013, price dropped to just around $177 over a duration of twelve months.
Still, one of the most memorable bubbles of the decade was the 2017/2018 one. Bitcoin made its most astronomical rise to an all-time high of about $20,000 in December 2017. Come January 2018, it initially fell to $10,000, staying there for a while before plummeting below $5,000.
Due to these fluctuations, there have been at least 382 obituaries to its name. These typically come in the form of essays explaining why BTC is doomed to fail. The very first of these was announced on Dec. 15, 2010, while the most recent one came out on Sep. 4, 2020.
Bitcoin Adoption Hits New Highs
But during this time, Bitcoin has seen massive adoption as can be witnessed from its usage milestones. As of Sep. 30, 2020, the total number of transactions that have happened on the Bitcoin blockchain was 573,063,000, as per Blockchain.com.
This hasn’t been seen more clearly than in the gambling sector, which now has more than 200 different Bitcoin casinos with thousands of different games. On average, around 350,000 transactions are confirmed on the network each day.
That comes to around 15,000 transactions per hour / 4 transactions per second. Furthermore, unique BTC accounts have grown at a rate of about 60% each year over the last 5 years. BitInfoCharts has that there are more than 23 million Bitcoin addresses and over 800,000 active users on the network each day.
Decentralization Meets Smart Contracts
A major development that came as a result of the introduction of Bitcoin was that it spawned a whole ecosystem of digital assets. Bitcoin’s introduction had brought not only a digital asset but also a technology called blockchain.
A blockchain is a public, decentralized ledger that makes it easy to securely record transactions, therefore, eliminating the role of an intermediary. The concept was so game-changing that it inspired the formation of new blockchains beyond BTC.
First was the introduction of Ethereum (Ether), providing new functions below the value transfer that BTC offered. In particular, Ethereum was formed for the execution of smart contracts and decentralized applications (DApps).
But, the idea behind smart contracts actually came after the introduction of the Ethereum blockchain. Its roots trace back to 1994 when Nick Szabo proposed the use of protocols to facilitate contracts. His suggestion of a digital contract would provide additional features that traditional contracts couldn’t as well as cut transaction costs.
Vitalik Buterin, Ethereum co-founder, created on this concept, implementing smart contracts into a blockchain system in 2013. As used in blockchain, smart contracts are scripts that implement a conventional contract using code. They are self-executing in that one specified conditions are met, they go into effect.
The application of the concept makes it easy for parties that are totally unfamiliar with each other to get into deals without needing a middleman. The terms and conditions of a smart contract are accessible to involved parties.
As a result, there’s no possibility of a dispute arising after it is implemented. Furthermore, they make it easy to perform transactions a lot faster than in the conventional process. And since they utilize a great degree of encryption, they are completely secure.
Thanks to the marriage between decentralized transactions and smart contracts, a new window of opportunities opened up. One of these was the introduction of stablecoins.
Stabilizing Crypto Volatility – The Birth of Stablecoins and Bitcoin Casinos
Just like most practical innovations, the emergence of stablecoins was driven by a real market need. Referring to the early stages, cryptocurrencies were introduced to address pain points in the financial system.
But whereas they succeeded at being a medium of exchange, they failed greatly at being a store of value. Their values have been known to change by double figures on a normal day, making them highly ineffective at the latter function.
Stablecoins provided the solution to this issue, since they have what it takes to reduce price fluctuation. To achieve this, stablecoins pegged to different assets like currencies and commodities. Due to their fundamental framework, they offered a basis for enjoying all the benefits of cryptocurrency without the risk of value fluctuations.
In particular, Ether is the most famous blockchain protocol choice for the introduction of stablecoins. As a matter of fact, about 50% of all active stablecoins run on the Ethereum blockchain. One of the reasons for this popularity is because Ethereum supports the incorporation of new digital assets without the onerous process of creating new infrastructure.
Ether utilizes the famous ERC-20 protocol that allows for interoperability between all assets unveiled on its blockchain.
Some of the renowned stablecoins include Tether (USDT), True USD (TUSD), USD Coin (USDC), and Paxos Standard (PAX).
BTC casinos were on the front line for the adoption of BTC as well as other forms of crypto. The launch of stablecoin support on gaming sites took the entire concept to a new level. Previously, concerns about value movement affected widespread adoption of cryptocurrencies at gambling venues.
However, today users can wager stable value at casinos with all the advantages of crypto. For example, one can enjoy unparalleled speed in making deposits and receiving winnings. Gamblers also get a great level of privacy that’s inaccessible when using fiat. Some cryptocurrency casinos support entirely anonymous gameplay, whereas others require little personal details for registration.
In the spirit of interoperability, BTC punters even have the chance to move their BTC to the Ether blockchain. On top of that, the level of security availed by the utilization of cryptocurrency is incredible. For one, users don’t need to upload any sensitive personal info. Secondly, cryptographic security ensures unbeatable safety.
What the Future Holds for the Dynamic Duo
BTC has clearly travelled some miles since its introduction and still holds a lot of potential for various sectors. The casino sector was one of the first to embrace cryptocurrency and has reaped major benefits from the move.
With the growth of the technology underpinning crypto, from the launch of stablecoins to smart contracts, the casino sector has continued to enjoy dynamic benefits. The possibility of smart contract betting is also promising and could take the BTC casino industry to a whole new level.