Understanding Stablecoin and Where to Find the Best Gambling Sites

Stablecoins are the latest phase in the efforts to bring cryptocurrency to
new legitimacy. These coins achieve all of the benefits that digital coins can
achieve with very little of the accompanying volatility. As a result, it seems
like only a matter of time before Stablecoin gambling sites make serious inroads
in the online gambling world.

In the past few years, gamblers have discovered how convenient and easy it
was for them to fund their
online gambling with
cryptocurrency instead of using traditional methods like credit cards or
bank cards. Not only that, using the coins provided them with unexpected
benefits like privacy, security, low fees, and speed of settlement.

Some of the finest, most established gambling sites have added cryptocurrency
to their methods of payment. Meanwhile, new sites have grown up that are
entirely based on crypto.

The main problem with this setup is that even the top cryptocurrencies, such
as Bitcoin, Ether, and Dash, are saddled with high volatility. This means that
the value of the coins tends to rise and fall significantly and without warning.
All of which makes gambling with the coins somewhat of an unstable proposition.

Yet you might be able to tell, from the very name, that Stablecoins offer a
solution to this issue. That is because they generally are created with the
intention of keeping their value at a relatively unwavering level. This is
managed by either tying the coins to a stable asset like the United States
Dollar or gold, or by some internal mechanism which adjusts the price when it
starts to move too much in one direction.

As you might imagine, Stablecoins have really made progress over the last few
years because of their ingenuity and their solid makeup. If adopted on a wide
level, they can solve the problem of cryptocurrency being more of an investment
vehicle instead of an actual replacement for physical currency. It also might
lead to a boom in Stablecoin gambling sites from all corners of the internet.

In the following article, we will take an in-depth look at Stablecoins and
explain how they work compared to other cryptocurrencies. We’ll examine why the
coins make for such an interesting alternative to other cryptocurrencies when it
comes to online gambling. And we’ll take a look at what you might be able to
expect from Stablecoin gambling sites once they really start to take hold.

Cryptocurrency as Both Currency and Investment

The first cryptocurrency, Bitcoin, was created about a decade ago with the
intent of it proving that you could make payments with non-physical, legal
tender and have those transactions be trustworthy. This was achieved through a
technology known as the blockchain. Without getting bogged down in the specifics
of the blockchain, suffice it to say that it legitimizes and validates the
transactions using Bitcoin and other cryptocurrencies without employing a third
party.

Think about when you use your bank card. You have to sign up for a checking
account first before getting to that step, and the bank is then privy to every
transaction you make. It also has your vital personal information as well.

Credit cards require that same kind of surrender on behalf of the individual.
And we put up with all of the fees and hassles that we are subject to when using
these methods of payment because of the trust these institutions bring to your
financial dealings.

Cryptocurrency achieves all of that without that need for the third party. It
gives the user personal control of their finances again. Not to mention that it
cuts down transaction fees and settlement times to an absolute minimum.

Yet, cryptocurrency has not quite made it to the point of being a viable
alternative to regular currencies, in large part because it has become such a
popular investment vehicle. People saw the potential of the coins in their early
stages and stocked up on them. As a result, prices soared, more people came on
board, and prices rose even higher.

Those prices have dropped off in the past year as there has been an expected
correction in the market. Still, many people buy cryptocurrency without ever
having the intention of using them as they were intended. Instead, they hold on
to them as long-term investments or actively trade them as a day trader would
stocks.

Cryptocurrency Volatility

The end result of cryptocurrency being used more like an investment property
than an actual payment system is the fact that the values for the coins are
extremely volatile. Let’s imagine a step-by-step example, as seen through the
lens of internet gambling.

This is a bit of a harsh scenario, and it’s not likely that you will
encounter anything quite so drastic. And there’s always the possibility that the
prices could have worked in your favor. That is, the value of the coins could
have risen when they were in your possession and plummeted once you deposited
them into your account.

The bottom line is that there is very little stability for those who want to
gamble with the coins. And these problems aren’t limited to just gambling. What
you might be able to understand from this example is that this problem can come
up no matter how you choose to spend your cryptocurrency coins.

That’s part of the reason why many businesses still shy away from offering
goods and services for cryptocurrency, even with the saturation level of the
coins on the rise. When you add in those people who only want to deal with the
coins as investments, you can see why they are not quite fulfilling their
potential as alternative currencies. But, that’s why the notions of a Stablecoin
and, in conjunction with that, Stablecoin gambling sites, are making such
progress.

How Stablecoins Work

Let’s go back to that other example. What if you could be relatively certain
that the value of the coins that you were using for your gambling wasn’t going
to drastically change at any given moment? Suddenly you could use the coins in
your gambling exploits without having to worry about volatility.

The coins that you withdrew would have been worth around $1,000 for a long
period after getting it back. And you could put it back into your account
without being concerned that the value of the coins would skyrocket the second
they were no longer in your possession. That is what a Stablecoin can do.

How does it do that? Well, there is a number of ways. The most common of
those is that the value of the coins are stabilized because they are tied up
with the value of some underlying, stable asset.

Think about the United States dollar. When you spend or receive this
currency, you can do so knowing that its value won’t fluctuate much at all in a
short period of time. This is because it’s backed by a government that won’t
allow that to happen and takes measures to ensure that stability.

Of course, the dollar and other world currencies do move up and down in
relation to each other. That is what creates the

foreign exchange market. It’s also why you have to trade in currencies when
you are in a foreign market.

But established currencies of the world don’t move drastically, in terms of
their value, in a short period of time. That’s why many of the most popular
Stablecoins on the market, such as Tether and True USD, make their coins hew as
closely as possible to the US dollar.

There are other ways that Stablecoins can achieve this stability. They
include:

Tying into Other Assets

You might be able to find a
Stablecoin with gold as its underlying asset that determines the price.
Venezuela used oil as the asset in question for a much-publicized form of
Stablecoin. As long as the asset avoids great volatility, it can be a good
basis for a Stablecoin venture.

Using Many Cryptocurrencies

By backing a Stablecoin
with a basket of cryptocurrencies, the issuers can prevent the volatility
that might come with just one. It’s the same concept that applies to someone
diversifying a portfolio with many different assets. In this way, the coin
issuers (DAI is the most popular of these coins) don’t have to leave the
realm of cryptocurrency to achieve the stability they want.

Building Stability into It

Using smart contracts,
which are another byproduct of blockchain technology, a coin issuer can
adjust the value so that it never gets too high or too low. These contracts
would act as the force which keeps volatility from creeping into the
picture.

In some cases, these coins have the backing of actual collateral to do the
stabilizing. Some other coins manage to keep prices level without any
collateral. Regardless of how it’s achieved, the goal of all these coins is
generally the same: keeping coins at a level value in the short term and putting
them in play more than investment-style coins could hope to be.

What Stablecoins Mean for Online Gambling

You might wonder how Stablecoin gambling sites would differ from typical
gambling sites that are currently in existence. There are several different ways
in which these sites could take shape:

Added to Existing Sites

Most of the top gambling websites now
include some sort of nod to cryptocurrency users. These sites allow for
withdrawals and deposits in top coins like Bitcoin and Ether. Should
Stablecoins continue to grow in popularity, it’s likely these top sites
would make room for these coins as the demand from gamblers would warrant
it.

As the Drivers for New Gambling Sites

There exists the possibility that certain sites will come into play which are strictly reserved for Stablecoins. These Stablecoin gambling sites would preclude any other method of depositing funds, such as credit cards or cryptocurrencies, that don’t fall into the Stablecoin category.

Within Larger Cryptocurrency Networks

Think of how the coin Ether is used to fund applications on the Ethereum network. The possibility of some sort of Stablecoin fueling a network like this might mean that gamblers could partake in apps right on that network. That would allow them to only send funds for specific events instead of creating a specific account.

With these sites in place, gamblers could use Stablecoins to bet on their
favorite sporting events. They might also be able to take part in casino
gambling. Basically, if it’s something that is included on a traditional
gambling site, it can also be included on a Stablecoin gambling site.

When to Expect Stablecoin as a Viable Option for Gambling Sites

It seems like it’s only a matter of time before Stablecoins become a serious
competitor to traditional cryptocurrency coins as a method of funding gambling
endeavors. For one, many governments are in the process of developing their own
Stablecoins as a way to safely join the cryptocurrency craze and not jeopardize
their markets.

On top of that, the last year or so has been a rocky one for traditional
cryptocurrencies. More and more, regulators are getting involved as a way of
trying to keep new coins from scamming unsuspecting users and investors.
Meanwhile, the value of established coins continues to fluctuate wildly even as
they sit well below their previous peaks.

In any case, Stablecoins are poised to gain ground as the traditional
cryptocurrencies lose it. And, since crypto and gambling on the internet have
always been closely associated, it seems natural that Stablecoins should jump
into that void. When that happens, expect Stablecoin gambling sites to pop up
with great frequency and immediately become a major factor in that realm.

Conclusion

Stablecoin gambling sites are still in the beginning stages, and Stablecoins
in general have a long way to go to compete with Bitcoin, Ether, and some of the
other coins that have already made impressive inroads in cryptocurrency
gambling. And it’s unlikely that they will completely eliminate those coins from
consideration as methods of funding gambling exploits. But the near future
should include a great increase in Stablecoin gambling sites, once gamblers and
websites find out how beneficial these coins can really be.