Cryptocurrency does not refer to a misspelled monetary system on Krypton, Superman’s place of birth. But the names affixed to various types of cryptocurrency sure sound like they could be from Krypton. Or Middle Earth. 

Cryptocurrency, and everything that goes with it, is a monetary system, but one that has nothing to do with fantasy worlds. To a growing percentage of the populace, the system is the next big thing in finance.

The origin of crypto, the word, comes from cryptography.

“Most casinos accepting cryptocurrencies at the moment are only allowing guests to exchange crypto for cash at the casino cage,” says Josh Swissman, founding partner, the Strategy Organization.Or through the use of an ATM-style device. “Our slot machines and poker tables do not currently accept crypto, but our casino is constantly evolving to exceed our guests’ preferences and expectations,” says Armando Suarez, general manager of the property. “The Coin Cloud Digital Currency Machine is a fabulous amenity which now offers our guests a convenient and easy way to buy and sell Bitcoin, Ethereum and over 40 other digital assets with cash.”

ATM For Crypto

Cryptocurrency will evolve much like ATMs did in the late 1990s. 

The Coin Cloud DCM allows guests to conveniently sell their digital currency for cash to play at one of the casino’s 750 slot machines or poker tables. They could also convert their winnings into crypto if they choose.

ATM-type Bitcoin machines have appeared all over the world in the last couple of years, as it is a very easy way to cash out of your cryptocurrency account into the local fiat currency for whatever country you’re in. And often vice versa. Coin Cloud’s team constantly investigates which coins customers are actively considering and adds new offerings after a proprietary approval and compliance process.

Crypto is not country-backed, nor is cryptocurrency attached to any country’s economy.

As big crypto exchanges like FTX and others become commonplace, conducting cryptocurrency transactions also becomes a more prevalent and trusted way to pay for goods and services, Swissman says. “I think the non-gaming amenities and payment opportunities will be the first to manifest. For gaming crypto transactions to occur, much regulatory updating would need to take place.”

Finding Stability

Since early December, Bitcoin and Ethereum, two of the largest crypto platforms, have had daily average price swings of 4.8 percent and 6.2 percent respectively with individual daily price swings of as much as 20 percent, says Cory H. Morowitz, managing partner of Morowitz Gaming Advisors LLC, a consultancy firm. With such swings, cryptocurrencies are not appropriate methods of payment exchange for casinos. Imagine trying to manage a casino cage or manage daily cash reserves with a currency that fluctuates to that level. Until that volatility is solved, these are not appropriate for businesses that have high turnover and cash needs.

Stablecoins may be the answer to that dilemma at the moment. Truth is that an electronic wallet doesn’t differ much from cashless gaming or cashless anything. When you pay for your shopping order with a debit card on your cellphone, you’re using an electronic wallet. When you send money to your cousin Vinny via Venmo, you are relying on an electronic wallet.

The advantage of a cryptocurrency wallet as opposed to a debit card or Venmo comes down to cost and speed. ATM cards employ the fiat-based banking system that is very costly. Transaction fees are simply too high. Cryptocurrency has fees, but much smaller ones. Moreover, using blockchain eliminates the traditional checks and balances used in other transactions. The traditional ways e-wallets work is neither fast, secure or cheap.