Lucky those who first found the gold mine and took the opportunity before anyone else! From the creation of the asset by Satoshi Nakamoto in 2008, few had faith in its growth. Bitcoin was—and still is—notoriously volatile, from the famous day two pizzas were bought for 10,000 BTC in 2009, to the present, where one bitcoin is now valued at over $110,000.
It’s no surprise that this meteoric rise is driven by multiple macro and micro factors. Institutional adoption, growing regulatory clarity, technological advances, and shifting global sentiment have all played pivotal roles in Bitcoin’s trajectory. But beyond the headlines and price surges, what does this evolution mean for real-world utility—particularly in sectors like iGaming, where speed, privacy, and borderless functionality are paramount?
Regulation
Let’s start with the elephant in the room: regulatory clarity. For over a decade, the biggest criticism aimed at cryptocurrencies was their “wild west” status. The absence of clear guidelines made adoption risky for both users and enterprises. However, in recent years – and especially post-2021 – we’ve seen a regulatory thaw. Jurisdictions in Europe, Asia, and Latin America have begun to roll out licensing frameworks and compliance standards tailored for digital assets.
The European Union’s MiCA (Markets in Crypto Assets) regulation, for example, has laid a concrete foundation for companies to operate across borders with defined AML and KYC expectations. This clarity is especially critical in the iGaming world, which is itself under intense regulatory scrutiny. By bringing crypto transactions into a compliant structure, operators now have the opportunity to harness the benefits of blockchain payments without the regulatory risk.
What drives demand?
Next comes supply and demand dynamics, a fundamental driver of Bitcoin’s price – and increasingly, its perceived legitimacy. Unlike fiat currencies that can be printed at will, Bitcoin has a fixed supply of 21 million coins. This built-in scarcity has proven attractive not just to individual investors but also to institutional funds seeking a hedge against inflation and geopolitical instability.
Halving events, where Bitcoin’s issuance rate is cut in half roughly every four years, add to the deflationary pressure. The 2024 halving event further tightened supply, just as institutional capital flooded in through regulated products like spot ETFs launched by BlackRock and Fidelity. This confluence of demand-side enthusiasm and limited supply makes Bitcoin a unique asset class – resistant to many of the systemic risks that plague traditional financial systems.
Technological advancement has also played a crucial role. Bitcoin’s network, once slow and clunky, has seen efficiency gains through Layer 2 solutions like the Lightning Network. These upgrades allow for faster and cheaper transactions, making the currency far more viable for microtransactions and day-to-day use. At the same time, the broader blockchain ecosystem has matured. Stablecoins, sidechains, and multi-chain compatibility have opened doors for broader crypto integration into real-world payment systems. For iGaming operators, this means they can now accept crypto payments quickly, securely, and often with lower transaction fees than traditional card or bank-based options.
How has this translated into the iGaming sector?
The connection between crypto and iGaming was almost inevitable. Both industries are digital-first, attract a tech-savvy user base, and have a historical appetite for disruption. What began as a niche offering – Bitcoin casinos operating outside of mainstream platforms – has evolved into a serious payments alternative even among licensed operators. Today, many iGaming companies either accept crypto directly or partner with custodians and payment firms that allow seamless conversion of crypto to fiat.
We at Payhound, where we offer licensed and regulated crypto payment services specifically built for sectors like iGaming, have seen a significant increase in interest for crypto payments among players and operators, with almost all of them being excited about the possibilities but still concerned about volatility. By integrating Payhound’s API or custodial solutions, operators can offer deposits and withdrawals in digital currencies without ever touching the volatility risk themselves. Of course, another option that achieves this is the use of stablecoins and it is fair to say that USDT powers significant parts of the whole online gambling industry in Asia and beyond.
It’s worth noting that players themselves are increasingly looking for crypto options. A growing portion of Gen Z and millennial consumers hold digital assets, and offering crypto payment options is becoming a competitive differentiator. Add to this the advantages of privacy, speed (especially across borders), and low fees, and the proposition becomes even more compelling.
That said, integrating crypto isn’t a silver bullet. Operators must ensure compliance with local and international laws, especially as regulators tighten their grip on both crypto and gambling. Partnering with a firm that understands both worlds – like Payhound – can make the difference between smooth scaling and regulatory pitfalls. Also, crypto might be all the rage in some quarters, but good old FIAT is still crucial in many ways. From not wasting marketing budgets on funnels that ignore fiat to on and offramps, as well as continued reassurance and education of players, the worlds of FIAT and crypto currencies still walk hand in hand.
We’re still in the early days. Despite all the progress, crypto payments remain a small but fast-growing portion of the overall iGaming market. But the trajectory is clear. With increasing regulatory support, improving technology, and rising consumer demand, digital currencies are set to play a major role in the payment rails of tomorrow.
Bitcoin’s journey from pizza payments to billion-dollar ETFs is more than a quirky anecdote – it’s a signal. The world is rethinking money, value, and how we interact with financial systems. In iGaming, this rethink is already underway. For those willing to evolve with it, the rewards can be as transformative as the technology itself.
