Why Stablecoins Are Becoming the Go-To Option for Crypto Bettors

The Problem with Traditional Cryptocurrencies in Betting

Cryptocurrencies like Bitcoin and Ethereum have been widely adopted in online betting due to their decentralized nature, fast transactions, and enhanced privacy. However, their inherent volatility creates significant risks for bettors. For instance, if a bettor deposits $100 worth of Bitcoin into a betting platform and the value of BTC drops by 10% overnight, the bettor’s balance effectively reduces to $90, regardless of the betting outcome.

Conversely, if the value of Bitcoin rises, the bettor might face challenges withdrawing their winnings at a higher value due to exchange rate fluctuations.

This volatility undermines the predictability and fairness of betting and makes it difficult for users to manage their bankrolls effectively. Stablecoins address this issue by offering a stable value, and ensuring that the amount deposited remains consistent regardless of market conditions.

Fiat-backed stablecoins remain the most popular choice, especially in betting, due to their reliability and broad acceptance.

Benefits of Stablecoins for Crypto Bettors

Stablecoins are becoming a top choice for online betting, and for good reason. Here’s why:

1. No More Value Drops: With stablecoins, what you deposit stays the same—no sudden losses due to market swings. This makes betting stress-free and predictable.
2. Lightning-Fast Payouts: Forget waiting days for your winnings. Stablecoin transactions are completed within minutes, so you get your money instantly.
3. Low Fees = More Winnings: Unlike bank transfers and credit cards, stablecoins cut out the high transaction fees, saving you money on deposits and withdrawals.
4. Better Privacy: You don’t need to share personal banking details—blockchain keeps transactions secure and discreet, giving you more privacy.
5. Bet from Anywhere: No banking restrictions, no currency conversions—stablecoins work globally, making them perfect for bettors everywhere.
6. Transparent and Secure: With blockchain, everything is recorded, reducing fraud risks and ensuring your funds stay safe.

Stablecoins in the Betting Industry: A Growing Trend

BitUSD, the first stablecoin, launched in 2014 as a crypto-backed asset but lost its peg to the U.S. dollar in 2018. That same year, Tether (USDT) debuted as the first fiat-backed stablecoin, quickly gaining popularity due to its 1:1 backing by the U.S. dollar. This made it easier for traders—especially newcomers – to calculate crypto values amid Bitcoin and Ethereum’s volatility.

USDT was first listed on Bitfinex in 2015 and later expanded to major exchanges like Poloniex (2016), Binance, Kraken, and Huobi. Its high liquidity and fast transactions made it the preferred stablecoin for professional traders and a staple in crypto trading pairs.

As crypto adoption grew, early gambling sites like Cloudbet and Bitcasino accepted Bitcoin, Litecoin, and Dogecoin. Over time, stablecoins, led by USDT, gained traction in the sector.

Today, USDT, USDC, and DAI have a combined market cap of over $213 billion, facilitating more than $8 trillion in crypto transactions—including a significant share from crypto gambling platforms. Stablecoins now dominate transactions in crypto casinos.

The Future of Stablecoins in Betting

Stablecoins have cemented their place in the online betting industry, but their future hinges on a complex interplay of adoption, regulation, and technological innovation. As regulatory frameworks evolve, particularly with policies like the Markets in Crypto-Assets (MiCA) regulation, stablecoins may face compliance hurdles that could limit their use on betting platforms. However, increased oversight could also enhance legitimacy and attract mainstream users and institutional support.

Despite challenges, their stability, speed, and cost-efficiency position them as a game-changer in betting. Whether through regulatory adaptation or decentralized innovation, one thing is certain: stablecoins aren’t just a trend—they could become the default currency for online gambling.