ShareSports Betting with Stablecoins: A Safer Bet for Crypto Enthusiasts?
Sports betting is always an innovative industry that depends on the latest technology. It was among the first to accept making payments with cryptocurrencies. Many sports betting sites have also turned to so-called stablecoins as one of their payment options.
There are many reasons stablecoins and sports betting establishments are good matches. The use of stablecoins provides many of the features the users are looking for, but it doesn’t come with the same level of risks.
What are Stablecoins?
Stablecoins are a form of cryptocurrency. Its value is much less volatile than that of other cryptos as it’s not based on market forces but tied to the value of traditional fiat currency. That’s where the name stablecoin comes from. In most cases, stablecoins are tied to the value of the US dollar in a ratio of one for one.
This means that the value of the stablecoin is the same as the value of a dollar and that it changes based on its value as well. Since it’s the currency of international trade, it remains pretty stable.
What Are the Best Stablecoins Out There?
There are many stablecoins in circulation, but a few have quickly become prominent in the market. This is partly due to how safe and easy they are to use and partly because they came out at the right time when there was a genuine need for such a financial product.
USDT (Tether)
Tether is owned by a Hong Kong-registered company called iFinex. The company also owns the BitFinex crypto exchange. It was launched in 2014, so it’s one of the oldest stablecoins in the market. USDT works on the Bitcoin, Ethereum, TRON, EOS, Algorand, Solana, and Bitcoin Cash blockchains. It is a 1:1 ratio with the US Dollar. That means 1 USDT ≈$1.
USDC (USD Coin)
USD coin is owned by Centre, a consortium jointly founded by Circle, a fintech (financial technology) company, and Coinbase, a cryptocurrency exchange. USDC is a fiat-backed stablecoin, which means it is a 1:1 ratio with the US Dollar. It works on the Ethereum, Solana, Stellar, TRON, and Algorand blockchains.
BUSD (Binance USD)
BUSd is created by Binance, one of the leading cryptocurrency exchanges worldwide. It is a stablecoin tied 1:1 to the US Dollar. The stablecoin is issued in partnership with Paxos and approved by the New York State Department of Financial Services (NYDFS).
How Are Stable Coins Used for Sports Betting?
Stablecoins are used to make wagers on sports events. The USDT betting sites provide the same wagers and the same sports events to follow as the sites that use any other crypto or fiat currency as their payment method.
The use of stablecoins provides the players with all the benefits they would get from paying with cryptocurrencies but none of the volatility that comes with it. There are also some downsides that are unique to the world of stablecoins and that are enough to drive some players away.
What are the Main Benefits of Stablecoins?
The main benefits of using stablecoins to bet on sports events come from the fact that they are using blockchain technology, just like ordinary cryptocurrencies. That means the transfers are made instantly, and no fees are involved, as there are no intermediaries.
Stablecoins can also be used for smart contracts. This means that the terms of a wager are written into the blockchain code itself and are self-executed once the terms are met. It guarantees the players that they will get their winnings as soon as their outcome comes to fruition.
The Stability
As the name suggests, the most important feature of stablecoins is their stability. The value of cryptocurrencies is volatile and changes as the markets dictate. This means that those who bet on sports events can sometimes lose a portion of their winnings to market forces and inflation.
With stablecoins, the value of the winnings remains the same once the game is finished and the funds are transferred to your account in relation to the US dollar. For some players, it’s a bridge between the innovative technology and the status quo any investor is looking for.
Innovative Betting Options
Using crypto to bet on sports provides a new set of betting options. Live bets become easier and safer, as do microtransactions, meaning micro-bets. It’s led to an increase in gamification in traditional sports betting sites.
All of these features rely on blockchain technology to be quickly and safely executed. It means that they are also available when betting with stablecoins since most stablecoins use the same blockchain network as the crypto that isn’t tied to the value of a fiat currency. As more younger players start to get into sports betting, these innovative features will bridge online gaming and betting.
A New Kind of Stablecoin
Over the years, a new kind of stablecoin has emerged, and it has found its application in the world of sports betting. These new stablecoins aren’t tied to the value of the US dollar; instead, their value depends on the value of a more prominent cryptocurrency.
Cryptocurrencies out there have been around for long enough to prove their stability in the long run. They, too, are volatile and subject to market changes, but in the long run, they keep growing. Tying the value of a stablecoin to such currency is equally safe as tying it to a fiat one.
Staying inside the Matrix
Some players and cryptocurrency users find that the most important feature of a cryptocurrency is that it doesn’t rely on traditional financial institutions. That’s because it uses decentralized structures and can’t be controlled by government actions other than through taxes.
For those players, stablecoins are never a good option as they depend on the value of fiat currency and are subject to the dealings of national banks. It’s a valid take on the issue, but they can still rely on the use of stablecoins tied to the value of Bitcoin, for instance.
Volatility
Stablecoins aren’t entirely protected against volatility. They are as volatile as the fiat currency to which they are tied. For players who leave their winnings on their sports betting site account, this can lead to losses if the funds aren’t used for a long time.
However, the value of the stablecoins doesn’t change as rapidly as that of cryptocurrencies, and the players will be able to spot the trends and withdraw their funds once they do. The risk is the smallest when it comes to the stablecoins tied to the US dollar.
Conclusion
Stablecoins have become an interesting and well-liked innovation in the world of crypto. They combine many features of cryptocurrencies but aren’t as volatile, as their value is tied to the value of the US dollar. There are many different stablecoins to use, and almost all sports betting sites accept them as a payment option.
The safety and convenience of cryptocurrencies also apply to stablecoins since they are based on the same blockchain technology. Some players still enjoy the independence that comes with using decentralized crypto networks more, as it was the initial appeal of cryptocurrencies. In contrast, others find comfort in the stability of stablecoins.
