Cryptocurrencies have been all the buzz lately with big promises being made concerning how they will change online payments among other things. At the moment Bitcoin (BTC) is the most famous virtual currency and also the one with the largest market capitalization.
But what exactly is the difference between digital currencies and the terrestrial currencies? For one digital currencies exist purely online and are thus not tangible or physical like terrestrial currencies. Digital coins can be purchased from online platforms such as crypto exchanges. In order to acquire these virtual currencies all you have to do is change your fiat or traditional or terrestrial currency into virtual currencies. Just like is the case with traditional currencies a conversion rate is applied.
Another big difference between traditional currencies and virtual currencies is the fact that the former are not controlled by the government or a central bank. It is also not necessary to have a bank account or possess a government-issued ID in order to purchase virtual currencies. This makes them perfect for online gambling.
Five years ago more than half of all transactions involving Bitcoin were related to gambling. Since 2014 bitcoins numbering around 3.7 million have been wagered which translates to billions of dollars. Though the market size of the cryptocurrency gambling sector keeps growing, it constitutes a tiny fraction of the overall worldwide gambling industry.
In this regard there is a new Initial Coin Offering which is set to cause a disruption in the gambling sector by offering a new approach and new opportunities. This is ZeroEdge.Bet (ZERO), an online casino which is based on blockchain technology.
The business model of Zeroedge depends on the value growth of its cryptocurrency as opposed to cash flow of the casino games like is the case with traditional online casinos. Consequently with the casino games of Zeroedge the house has a zero edge and thus the chances of players winning is the same as that of the house. At the moment all casino games that are played online possess a house edge which ranges between 10 to 15%. The sports betting exchange of Zeroedge will also charge zero commissions when players choose to place bets on multiple leagues and sports.
Betting on Zeroedge is done using the ZERO virtual currency. The value of ZERO is also expected to increase according to the law of Metcalfe. This is because the virtual currency has been issued in a closed-loop economy meaning that the supply of the tokens is limited. The implication is that as demand rises the value of the coin will also appreciate. The cryptocurrency thus not only serves the function of being used for online gambling on the Zeroedge casino but can also be used as an investment.
ZeroEdge.Bet had its first introduction last year in November during the 2017 Blockchain Summit Kyiv. At the summit the ZeroEdge.Bet team gave presentations touching on how smart contracts and blockchain technology could be used to create a gambling environment that is efficient, sustainable and socially responsible.
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