Bitcoin halving induces greater caution among crypto-gamblers

The bitcoin halving event, coupled with the cryptocurrency’s strengthened exchange rate over the first half of 2024, has seemingly led to greater caution among crypto-gamblers, according to iGaming software development firm SOFTSWISS.

The company, which is headquartered in Malta and is a key provider of gaming solutions with crypto o integration, posts a quarterly review of the state of crypto in remote gaming.

It noted that the bitcoin halving in the second half of 2024 – an event that occurs approximately every four years, reducing the reward for mining new blocks by 50 per cent – may have had an impact on the popularity of the world’s top cryptocurrency in online gambling.

SOFTSWISS experts analysed the data gathered from around 250 crypto-friendly brands powered by the company that engaged in crypto transactions during the first half of 2024.

In absolute terms, the total bet sum, encompassing both fiat and crypto, grew by 46.6 per cent in the first part of 2024 when compared to the same period of the previous year.

Ongoing analysis since early 2022 indicates that fiat bets are experiencing more growth compared to crypto bets. Comparing the first half of 2024 to the same period in 2023, the fiat bet sum increased by 65.2 per cent.

On the other hand, in the first half of 2024, the crypto bet sum showed a modest 2.3 per cent increase compared to the same period of the previous year.

As fiat rates grow much faster than crypto rates, the share of crypto bets noticeably decreased in 2024, settling at 20.6 per cent.

The vast majority (around 93 per cent) are facilitated via an in-game currency conversion tool, which allows operators to engage players with cryptocurrency assets in fiat games.

Andrey Starovoitov, Co-CEO at SOFTSWISS, commented: “The anticipated impact of the bitcoin halving, coupled with the strengthening of the bitcoin exchange rate in the first half of 2024, may lead to a more cautious attitude among players towards using cryptocurrencies.”

While bitcoin wagers make over just over half (52.7 per cent) of the total crypto-gambling market, this represents a sharp 23 percentage point (p.p.) drop when compared to the first half of 2023.

There are also other cryptocurrencies popularly used in iGaming.

These include Litecoin (14.3 per cent), Ethereum (14.1 per cent), Tether (11.7 per cent), and Dogecoin (4.59 per cent).

Of these, Litecoin and Tether demonstrated growth of 8.9 p.p. and 7.1 p.p., respectively.

Mr Starovoitov summarised: “Confirming experts’ anticipations, the iGaming industry is experiencing active growth, with a fifth of all bets coming from the crypto segment. The intriguing fluctuations in bitcoin’s position promises both increased profits and a more cautious attitude toward spending.

“However, every challenge brings its own opportunities. The key to success lies in adapting by investing in employee training and software development, integrating crypto processing, and ensuring your platform remains secure throughout the process.”