This raised a question as to how something that hasn't even existed for 15 years shapes several thousand-year-old practices. Many are also wondering what the implications of these changes can be.

In this article, you'll get the answer to that question. You'll discover the impact of betting on sports with crypto and how this shift is creating new advantages and disadvantages for both sports bettors and sports books.

Cryptocurrency Gambling: A Brief History

Without the invention of Bitcoin in 2009, it wouldn't be possible for cryptocurrency gambling to exist. The first ever online casino that implemented Bitcoin payments was established three years after its creation. Its name was Satoshi Dice. As you might have guessed, the name was a homage to Bitcoin's mysterious inventor, Satoshi Nakamoto.

Satoshi Dice was a leading Bitcoin gambling site at that time. However, it had to suffer legal notices that resulted in the loss of players. Still, more and more sports casinos started to accept Bitcoin as a valid currency after its establishment. It proves that the casino was a prominent pioneer in the crypto-gambling industry.

Since then, the cryptocurrency gambling business has continued to grow. More and more online casinos and sportsbooks started to accept cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. The use of blockchain technology has provided players with better transparency and security. However, it also came with many challenges.

Why Cryptocurrency Sports Betting Is Becoming More and More Relevant

In the sports betting market, cryptocurrencies are gradually becoming the favored payment option. The rise in cryptocurrency popularity can be linked to the numerous benefits they provide. Here are the benefits of cryptocurrency you can have as sports betters.

Anonymity

Cryptocurrency transactions work in a decentralized network of computers. To verify records and transactions, the network uses complex algorithms that ensure the anonymity of its users.

While traditional financial transactions often require you to input personal data such as your name or your social security number, cryptocurrency transactions do not. Instead, each of your transactions is identified by a unique digital address that ties it to your wallet.

If you're not comfortable with sharing your betting activities, this feature can be beneficial for you. Furthermore, you know how dangerous it is to share private information, even with a platform you trust.

The danger of data abuse is not something you should take lightly. Therefore, by using cryptocurrency in sports betting, you can ensure that your personal information remains confidential.

Lower Fees

Cryptocurrencies transactions do not require third-party intermediaries, such as banks, to regulate them. This means that they're free of any intermediary's extra service fees. That way, you can pay less and earn more.

Transactions in blockchains are processed through blockchain ledgers, which ensure that both bookmakers and bettors get full protection with lower fees.

When you use traditional payment methods to do gambling transactions, the fees often vary depending on the destination country and transaction amount. In contrast, cryptocurrency transaction fees are generally fixed. This can give you a more accurate prediction of the amount you will be charged. As a result, it will be easier for you to budget your costs.

Furthermore, cryptocurrency transactions can eliminate fees related to currency conversions. They're designed to be borderless, allowing people around the world to enjoy sports betting with ease.

Speed

Traditional financial transactions have queues and specific protocols to follow. Because of that, they can take a long to process. This wouldn't be the case with cryptocurrency transactions. Its decentralized nature doesn't rely on an intermediary, so all the processes can be completed in a short time.

With this advantage, you can quickly transfer funds and place bets during time-sensitive events or promotions. Additionally, it can be beneficial if you need a quick withdrawal of your winning funds.

Security

Blockchain's decentralization system truly brings so many things to the table. Other than providing anonymity, it also offers extra security due to the multiple verification processes. Although not completely hack-proof, the network's complex mathematical algorithms make it super difficult for hackers or fraudsters to exploit.

The extra layer of security that's not provided by traditional transaction systems ensures you make transactions on the sportsbook with confidence. You would feel safe knowing that your funds and personal data are secure.

Challenges Faced by Cryptocurrency Sports Betting Platforms

Despite its many advantages, cryptocurrency sports betting is still facing many challenges. Here are some of them:

Volatility

Cryptocurrencies are risky assets due to their volatility. The value can fluctuate in a short time, so sometimes, sports bettors might find it difficult to estimate the exact amount they are betting.

Regulatory Problems

Cryptocurrencies are not regulated in the same way that traditional payment methods are. As a result, it can increase the risk of fraud.

Limited Acceptance

Although the cryptocurrency sports betting industry is rapidly growing, most sports betting platforms still only accept traditional payment methods. This gives cryptocurrencies limited acceptance.

Technical Knowledge Required

Using cryptocurrencies can be a barrier for some people. It requires relatively advanced technical knowledge, which might be a drawback for sports bettors who are not familiar with the technology.

The Bottom Line

Cryptocurrencies are changing the landscape of sports betting by offering a new and innovative means to gamble online. They are becoming an increasingly popular choice for sports bettors because of its advantages of anonymity, rapid transactions, security, and lower fees.

Nevertheless, there are certain things to consider before doing sports betting with cryptocurrencies, including their volatility, limited acceptability, regulatory uncertainty, and the requirement for advanced technical knowledge.

Overall, cryptocurrency use in sports betting is still in its early stages, but its influence is already being seen as more sportsbooks, and bettors embrace this new method of payment.