In the second quarter of 2024, a significant event unfolded in the cryptocurrency realm: the Bitcoin halving. This occurrence, which happens roughly every four years or every 210,000 blocks, reduces the reward for mining new blocks by 50%. The 2024 halving is the fourth since Bitcoin's creation in 2009, with previous events in 2012, 2016, and 2020. The purpose of these halvings is to ensure Bitcoin's scarcity and control inflation, maintaining the total supply at a maximum of 21 million coins.
Historically, each halving has been associated with a subsequent rise in Bitcoin’s value, driven by the reduction in new supply.
Bitcoin halving is a crucial event in the cryptocurrency world. By halving the rewards miners receive, the event reduces the rate at which new bitcoins are generated. This mechanism is essential for controlling Bitcoin’s inflation and preserving its value over time.
Since Bitcoin’s supply is capped at 21 million coins, the halving ensures that this limit is never exceeded, reinforcing the cryptocurrency's deflationary nature. Each halving has historically led to an increase in Bitcoin's price, as the reduced supply creates increased scarcity, making the remaining bitcoins more valuable.
The recent halving event has broader implications beyond the cryptocurrency market, particularly for the iGaming industry. Experts suggest that the halving may prompt new regulations aimed at promoting fairness, responsible gambling, and anti-money laundering measures within the crypto-driven iGaming sector.
These regulations are anticipated to enhance player trust and transparency, especially for brands that embrace Bitcoin and other cryptocurrencies.
SOFTSWISS, a leading provider in the iGaming industry, has shared valuable insights through its quarterly "State of Crypto" overview. This analysis covers data from around 250 crypto-friendly brands powered by SOFTSWISS, which engaged in crypto transactions during the first half of 2024. According to the report, there was a 13% increase in the index since the beginning of the year, reflecting growing engagement in crypto transactions within the iGaming sector.
One of the key metrics highlighted by SOFTSWISS is the Total Bet Sum, which includes both fiat and crypto transactions. In the first half of 2024, the Total Bet Sum grew by 46.6% compared to the same period in 2023. This significant increase indicates a robust rise in betting activity across the iGaming market, driven by both fiat and crypto transactions.
In addition to the Total Bet Sum, the Total Bet Count also showed substantial growth. The number of bets placed in the first half of 2024 surpassed the figures from the first half of 2023 by 51.7%. This growth in bet count underscores the increasing popularity and engagement of players in the iGaming sector.
Despite the overall growth in the iGaming market, there is a noticeable trend where fiat bets are growing at a faster rate compared to crypto bets. The analysis shows that the Fiat Bet Sum increased by 65.2% in the first half of 2024 compared to the same period in 2023. This suggests that while crypto betting is gaining traction, fiat betting continues to dominate the market in terms of growth rate.
The Bitcoin halving event's impact on the iGaming market extends beyond immediate regulatory and market performance aspects. The anticipated rise in Bitcoin’s value could benefit Bitcoin-friendly iGaming brands by attracting more players and increasing trust and transparency in the sector. As Bitcoin becomes more valuable, its use in betting and transactions within the iGaming market is likely to grow, enhancing the overall player experience and market dynamics.
Source:
''Will Bitcoin Halving Influence iGaming? SOFTSWISS H1’2024 Overview'', softswiss.com, August 06, 2024.