Blow For Bitcoin Casino Users As Fees Soar Ahead of Halving

*Disclaimer - the information on our website is not financial advice, and you should not consider it to be financial advice.

Bitcoin casino users have suffered a blow ahead of the upcoming “havling” expected to take place in the week of April after transaction fees for the popular crypto skyrocketed. 

Bitcoin casinos work much like more traditional casinos, with one glaringly obvious exception - they accept Bitcoin as a payment method to deposit, withdraw and place wagers. Users can still play slots, blackjack as well as a plethora of other casinos. For the most part, they have the exact same bells and whistles. 

The Bitcoin halving, which occurs roughly every four years, has historically led to astronomic price increases. However, recent data has shown that transaction fees, also known as Bitcoin network fees, have too skyrocketed ahead of the much anticipated event. 

In recent weeks, the average transaction fee reached as high as $24.31, and has fluctuated around the $15 mark. A marked increase in comparison to recent months, where in February users could make transactions for as little as $3. Transaction fees are determined by two factors, the size or volume of the transaction, and the demand for block space i.e. how quickly a user wants their transaction to occur. 

iGaming Headache

But what does this mean for Bitcoin casino users? Do you need to pay transaction fees every time you want to deposit and withdraw at a Bitcoin casino? 

The short answer here is yes. Bitcoin casino users will be at the mercy of the recent transaction fee hike. The process for Bitcoin casino wallets works like other cryptocurrency wallets, with transactions taking place on the blockchain, and as a result, fees are incurred on the users side. 

One source, who works as a customer service agent for a Bitcoin casino, told Casinos.com, "We get inundated with messages from customers when transaction fees go up."

But it's not all roses, unfortunately. Zoric expects the current high costs to remain in place for the foreseeable, and indicated they will likely continue on that trajectory.

"It’s impossible to say what the transaction number will look like at any moment in the future, however it shouldn’t go down much as I expect us to stay in a bull market for quite some time after the halving.

"As adoption grows, I think it’s safe to say that blocks and transaction fees will be fuller/higher in the future than the other way around."

Future Uncertain

Just yesterday new rules were published in Brazil, one of the largest regulated iGaming markets, banning the use of both credit cards and cryptocurrency for casino payments. A testament to the murky waters in which Bitcoin casinos operate. 

While Bitcoin casinos will have their pros, there are certainly cons associated with them, and the current transaction fees and regulatory updates in Brazil emphasise this. 

Likewise, users expecting a sudden boost after this week’s halving to their Bitcoin casino account may have to wait. While the halving does coincide with major price increases, it typically comes around a year and a half after the event itself. 

This halving is far more documented than previously, with some analysts theorising that the recent price boost was a reflection of the upcoming halving, and drawing more worldwide attention of it’s impending release. 

Zoric went on to emphasize that in truth, it's impossible to predict, but highlighted that historical charts should offer reassurances, with the caveat that investors - whether through traditional means or planning to play at Bitcoin casinos - reassess as things move forward.

"First it’s impossible to predict the price of anything. Whoever claims differently is not realistic. I like to look at things in probabilities. 

"There is a higher probability that we will see higher prices than the recent ATH that we hit a few weeks ago. If I had to give you percentage, I would say 70% chances that BTC will be substantially higher six to 18 months after the halving.

"Where do I get my reassurances? I’m looking at past cycles and the way price has behaved. This is fourth cycle and in the last three cycles this is exactly what has happened. Why change expectations until things are working like they did before, no? If things do not work this way, we will re-assess."

Other Factoring Determining Price

There are other factors involved in the price of any cryptocurrency that must be taken into account also, Zoric warned. 

"Let’s not forget hard macroeconomic situation that we have around us with high interest rates, sticky inflation. Also, the geo-political situation is not something to be celebrated at the moment, as we could even see last night. 

"People need to be aware of all of this and manage their risk accordingly."

Neil Wilson, the chief analyst at the brokerage firm Finalto, told the Guardian, “The setup feels really familiar to past occasions where there has been a very sharp rally and it forms a top, then breaks.”

Regulation is muddled overall in the Bitcoin casino market, with governments and gambling regulators hesitant to apply legislation for the industry. Playing at more established casino sites with regular currencies offers safety and peace of mind for the less risk averse casino players.