On May 11th, 2020, one of the most important events in the history of Bitcoin happened. We’re talking about the Bitcoin halving, when the supply of new bitcoins issued in blocks is halved, reducing the inflation rate and making bitcoins more scarce than ever.
As of May 11th, halving events have happened three times in Bitcoin’s short history. In previous times, the price of Bitcoin has increased dramatically after halving events. Anticipation of another bull run is causing many online gamblers to switch to Bitcoin casinos, many speculators to buy and hold Bitcoin, and many traders to switch to long positions to try to capture some gains.
Let us explain more about the halving, how it affects Bitcoin, and why Bitcoin casinos are more popular than ever before.
The Bitcoin Halving – What Is It and Why Is It Important?
To understand the Bitcoin halving, you need to have a basic understanding of how Bitcoin works. It’s much simpler than you might think, despite being unfamiliar to most people.
Every 10 minutes, a new Bitcoin block is created, which has in it a number of recent BTC transactions. Bitcoin miners run specialized computers 24/7, trying to guess the cryptographic key to unlock the next block. If they guess it correctly, they get all of the transaction fees and the block reward, which is some of the new bitcoins.
Every 210,000 blocks, or about every four years given that a block is mined every 10 minutes, the block reward halves. This is why it’s called the halving. This means that the number of new bitcoins being issued decreases every four years, unlike fiat currencies, which central banks print by the tens of billions whenever they feel like it.
The fact that Bitcoin gets more and more scarce over time makes it attractive to all sorts of people. Speculators, investors, Bitcoin believers, and online gamblers sense the value in a currency that is scarce, especially as central banks flood the world with paper money.
The two previous Bitcoin halvings have been correlated with dramatic price increases in BTC. Here’s what happened before.
- In 2012, the first Bitcoin halving was followed by a price increase of 8,069% within one year.
- In 2016, after the second halving, the price of BTC increased by 284% within a year. Ultimately, it reached a record high of $19,786 in December 2017.
Some Bitcoin analysts expect another price rise to well over $100,000 before the next halving. This is why so many online casino players are rushing to try to win some Bitcoin. If you win $10,000 of BTC today, and it really does increase to $100,000 or more per coin, your jackpots will be worth at least 10x more. There are no guarantees that it will, of course, but gambling is all about risk.
Why Bitcoin Casinos Are Booming in 2020
There are a few reasons why BTC casinos are growing rapidly in popularity, and why this halving event (more so than any other) is causing online gamblers to flock to them in droves.
1. Bitcoin Casinos Are Secure
When you gamble online with Bitcoin, you don’t have to share your credit card or bank details with the casino. You deposit BTC straight from your Bitcoin wallet, and when you win, you withdraw to it. The wallet doesn’t give away any details about you, and if a hacker did break into the casino, all they would see is your wallet address and transaction history. Without your private keys, they can’t do anything with your wallet address. Therefore, Bitcoin casinos are safer and more secure than fiat casinos.
2. Bitcoin is Maturing and People Sense It
After the previous two halvings, in 2012 and 2016, barely anyone had heard of Bitcoin. These days, Bitcoin is talked about in the mainstream media often, and the number of users has increased dramatically. Even CNBC hosts and Wall Street legends like Paul Tudor Jones talk about Bitcoin’s bright future. There’s a sense that Bitcoin is reaching a new level of maturity and is being accepted by people who previously dismissed it. Many BTC holders are convinced that institutions such as pension funds will soon buy and hold Bitcoin, so the price increase could be larger than anything we have seen before.
3. Bitcoin Is Changing Gambling for the Better
Bitcoin itself has forever changed money, but it has a number of knock-on effects which are positive for online gambling, too. For example, since all Bitcoin transactions are recorded on the blockchain, it is impossible for rogue casinos to steal your deposits and deny that you ever made them. Likewise, there are now Provably Fair casino games that use blockchain technology and hashing to make sure that game outcomes are truly random and honest. These innovations will clean up casino gaming and squeeze rogue operators out.
Why This Halving Is Special for Online Gamblers
While all of the benefits of Bitcoin casinos listed above are great, the real reason why this halving is positively affecting Bitcoin casinos can be summed up in two words; potential gains!
Gamblers can look at a historical Bitcoin halving chart and see how the price has increased by a lot after both previous halvings. With the maturity of Bitcoin as compared to previous halvings, the potential for price increases this time is even greater. Gamblers are excited because winning some Bitcoin today and holding it for a couple of years could be highly profitable.
In summary, gambling is potentially a fast way to increase your Bitcoin holdings. One lucky spin on a slot machine could give you 1,000 times the bitcoins you risk. Playing Bitcoin poker with a smart strategy could mean your BTC stack grows dramatically. It’s all there for the taking, and it coincides precisely with an event that makes Bitcoin scarcer than ever, and at a time when central banks are flooding the world with paper money.
Could this be the perfect storm for Bitcoin? We’ll soon find out, but for now, Bitcoin casinos like KingBit Casino are more popular than ever, and this halving is only helping them grow in popularity as players see the true value of Bitcoin.