Why Bettors Are Ditching Bitcoin for Stablecoins

Why Bettors Are Ditching Bitcoin for Stablecoins

Bitcoin opened the door to crypto betting. However, many of the bettors who entered that door have silently proceeded to something else – stablecoins. In particular, to USDT (USD Tether), the dollar-pegged digital currency which now facilitates a big portion of online betting transactions globally.

It is not hard to see why. Bitcoin is fun to hold, but it is a nightmare to bet with. Stablecoins address the single issue that Bitcoin fails to handle when it comes to bettors, without sacrificing any of the features that make crypto superior to bank transfers.

The Bitcoin Problem Nobody Talks About

Just suppose you come in on a good bet on Saturday, and withdraw your winnings in Bitcoin. On Monday, the price is already down by 8%. You didn’t lose the bet; you lost the value. That is what it means to bet with a two-sided coin, and it is an issue that is not often discussed.

Whenever you make a bet with Bitcoin, you are making two bets simultaneously: the bet, and another unspoken bet, which is whether BTC will still be valuable when you can cash in on it. Most bettors are not crypto traders. They should not have to think about that.

What Makes Stablecoins Different?

Stablecoins such as USDT are supposed to feel just like ordinary money. One US dollar is always one USDT, plain and simple. When you deposit $200 and win $150, and come to withdraw, you get $350. No need to worry about whether the market went down or up overnight. It simply works the way money should work.

This concept is simple since it’s meant to be. You are in effect transacting with digital dollars that operate on a blockchain rather than a bank. You have everything that crypto has to offer, speed and privacy, without the crazy price fluctuations.

The Network You Pick Actually Matters

This is one of the things that many people fail to understand. Not every USDT is created equally. Tether is based on different blockchains, and the choice you make will determine how much you will pay in fees and the speed of the transaction. Currently, the USDT on the Tron network (TRC-20) is the most popular. It is usually dependable, but the fees have increased slightly recently. They are usually around $1-4, depending on where you are sending. USDT (ERC-20) based on Ethereum may be significantly more expensive, particularly when the network is overloaded, but newer Layer-2 implementations can also be used to reduce the costs.

You should also consider taking a minute to look at what networks your sportsbook can be used on. Those little differences in charges may accumulate if you are betting money regularly.

The good news is that the majority of crypto-friendly platforms have increased their efforts. They have become more network-friendly, withdrawals are quicker, and USDT is treated like a real payment.

Crypto Casinos Led the Way

Crypto casinos were the first to actually work out the stablecoins, and were hybrid sites, which are sportsbooks and casinos combined, built around crypto. They did not have to waste time attempting to fix old payment systems, so they could simply serve a variety of USDTs, provide fast withdrawals and design bonuses that would be sensible to users of stablecoins. Sites such as CCN have been keeping close track of this space, reviewing and comparing crypto-native platforms as they have developed.

What about traditional sportsbooks that added crypto later? They tend to have fewer networks and are slower in paying out. When betting with a stablecoin, having a crypto-native platform will often be better.

Bonuses That Actually Feel Like Bonuses

Another underestimated advantage of stablecoin use is the way sportsbooks treat bonuses around them. Since platforms save on processing charges, most of them transfer the savings to you by offering you better deals. Cryptocurrency sportsbooks also often have 100-200% deposit bonuses, which are significantly higher than on most platforms that use fiat currencies. Also, because your deposit is in a stable currency, you will not lose your bonus overnight either.

A Couple of Things to Keep in Mind

Stablecoins are not 100% safe. Tether itself has been questioned over the years with regard to the issue of whether it has sufficient dollar reserves to support all coins in circulation. It has been maintained so far, but it is good to know that background.

Also, as with all crypto, USDT is an irreversible transaction. Once you put your money in the wrong wallet address, you will never see it again. Always remember to recheck the wallet addresses twice and then confirm.

Is It Time to Make the Switch?

Stablecoins are certainly worth trying if you already use Bitcoin to bet, but find yourself glued to price charts instead of the game. The steps are the same, only that you buy USDT in an exchange instead of BTC, and keep it in the same wallet and deposit it in the same way.

What is different is that your bankroll no longer goes bouncing around. Your wins and losses depend on your bets, and not what the crypto market has decided to do that day. And that's how it should be.