Here we go again with market volatility–crypto prices are going through the floor after a cycle of historic highs. Seasoned crypto enthusiasts feel déjà vu, while relatively new faces think it’s the apocalypse. Crypto enthusiasts on BC GAME would naturally want to know what this volatility means for online Bitcoin gambling.
Once again, the industry feels like it is at a crossroads. The past few weeks are eerily reminiscent of 2018 when Bitcoin prices crashed from highs of $19k to just over $3k at the bottom of the bear market. This crash is more significant because Bitcoin has gone as high as $69k. The most dramatic development was the collapse of LUNA, an algorithmic stablecoin, whose business model ultimately proved unsustainable.
Crypto volatility: Understanding the dynamics
The fundamental differentiating factor between cryptocurrencies and fiat currencies is the control over their issuance. Cryptocurrencies generally rely on decentralized issuance, with a stipulated issuance model. For instance, there will only be 21 million BTC to ever circulate. In contrast, the Federal Reserve prints the US Dollar and can print the currency to perpetuity, depending on the prevailing monetary policy.
Accordingly, cryptocurrencies rely on the supply and demand forces of the market for pricing. The market sentiment is not static, and the volatility exhibits itself in crypto prices. There is an inherent risk when handling cryptocurrencies of losing value. Similarly, there is a significant upside when the cryptocurrency price appreciates.
The percentage price increases and crashes in double digits within a day or a week are familiar fixtures. Some cryptocurrencies are more stable than others, as would be natural for any asset class reliant on market forces. However, there can be periods of a general market slump, as has been the case through May and June.
Given its relative youth, cryptocurrencies are more volatile than other notable investment options like stocks, commodities, and bonds. There are stablecoins like USDC and USDC, which have also attracted scrutiny after the dramatic collapse of LUNA.
For individual prices, there is a range of factors that influence prices. They include usage data, regulatory developments, general market sentiment, and more. Newer traders are more likely to panic and sell in waves following a negative swing, causing dramatic price swings like the present crash.
There are various tips to manage crypto volatility for holders. They include:
- Diversify your portfolio – For crypto holders, it works to have a diversity of holdings. There are hundreds of active cryptocurrencies, each with unique dynamics. Find some coins with differences in protocol models to prevent losing all eggs in one basket.
- Consider the long-term future of projects – Crypto volatility may seem dramatic in the short term. However, there are long-term trends to observe and capitalize on.
- Information is power – Ultimately, navigating crypto markets calls for knowledge and decisiveness. Not every shiny new token is worth your while, and some sleepy projects may show the best consistency.
How the Online Crypto Gambling Industry Will Fare Amid the Volatility
Amid the devastating market collapse, Bitcoin gambling enthusiasts are curious what the effect will be on their favorite online casinos. Crypto trading platforms thrive better when crypto prices are through the roof. In these times, interest in crypto is at its highest, and gamers see the potential of their crypto winnings appreciating.
Bitcoin gambling platforms are different in some ways. The primary activity therein is online gambling, with cryptocurrency as the facilitating asset. Many indeed, lost significant holdings when crypto deposits in their custody plummeted in prices. However, the fundamental going of keeping the sites open for business must continue. Industry leaders like BC GAME are still investing in adding prominent gaming software developers as partners and crypto pairs for gaming enthusiasts to explore.
One of the defining trends in gaming was the rise of Non-Fungible Tokens (NFTs) and collectibles. These unique assets provided excitement and seemed the next growth factor for the crypto industry. NFTs have taken a toll from the overall crypto slump, with trading platform OpenSea expected to have a slower second half of 2022 than the first half. Nonetheless, gaming developers are still going, to develop digital assets that use the NFT model because the higher levels of user control over their gaming assets is an idea that will endure this slump.
Core Attractions to Crypto Casinos Endure
Here are a few reasons why Bitcoin gambling casinos will prove resilient:
- The anonymity of crypto gaming – The relatively few personal data requirements of crypto gambling platforms and the decentralized nature of these assets ensure anonymity for users. Even with significant volatility, thousands will relish this anonymity.
- Payment efficiency – Despite their volatility, cryptocurrencies are incredibly efficient. One does not need the stamp of approval of banks and other centralized intermediaries to either deposit or withdraw from crypto gambling platforms.
- Ease of access – The ultimate convenience of online crypto gambling is the convenience from an access standpoint. Users can wager using low amounts of crypto from a remote location. The low fees on withdrawals make leading crypto gambling casinos like BC GAME the more popular.
The Big Picture: Online Crypto Casinos to Prove Resilient
Therefore, cryptocurrency volatility does not affect some fundamental reasons that bring users to online gaming platforms. There may be a momentary slump in volumes at peak market panic, but the core users will likely remain. Online Bitcoin casinos like BC GAME will remain the home for people who want to wager in a free environment without the overbearing hand of centralized institutions. This demographic will be around for the long term. Cryptocurrencies have short-term cycles, but fundamental attractions and trends in this industry are most important. For online crypto casinos, these attractions are transcendent.