Before we begin, a fun fact about bitcoins; the first transaction was made in 2010 when a person used 10 thousand coins to purchase large pizzas from Papa John's. In retrospection, this is astounding!
Anyways let us try and develop the correlation of crypto and gambling.
The digital currency Bitcoin first appeared in 2009. When the cryptocurrency first appeared, it was only known among tech experts. When the value increased enormously at the end of 2017 and crashed again shortly afterward, it also attracted a lot of attraction from the general public. In 2019 there was an increase in the number of online casinos that accept cryptocurrencies as a payment method. Could the digital currency mean the future of financial transactions in the virtual gaming industry?
What cryptocurrencies are there?
After the first digital coin, Bitcoin, was created over a decade ago, several new cryptocurrencies followed over the years. Today there are more than 2,200 different currencies.
In addition to Bitcoin, there are also:
Litecoin, which is cheaper to use and quicker to make,
Dogecoin, a currency that is preferably used for smaller transactions
Bitcoin Cash, which should ensure faster transactions,
Bitcoin's fiercest competitor Ethereum, who can score with optimized technology,
Tether, a currency that is easier to acquire and is also more stable than other currencies.
The above options can be used by players in online casinos that accept cryptocurrency as a method of payment. However, the question arises as to which currency is the best. As described, every single cryptocurrency has certain advantages. It is, therefore, up to the individual preferences of the particular user.
Advantages of cryptocurrencies in online gambling
For many players, the anonymity of this payment method is a crucial argument when using Bitcoin and other currencies. Many users do not want to disclose their personal data on gambling websites. In addition, third parties cannot access the protected databases. This is also an important aspect when it comes to transactions in an online casino. Since the crypto servers are highly protected, users can make a transaction without revealing a lot about themselves.
With bank transfers, it can take a few days before the money is available to play with. The winnings are usually not paid out immediately after they have been applied for, even when using the eWallets. When using the cryptocurrency, however, these transactions are possible immediately, so that the money is immediately available.
Some online casinos and payment providers charge transaction fees. Since cryptocurrencies are decentralized, there are no processing fees because there is no service provider, as is the case with eWallets, for example.
Cryptocurrency transactions in online casinos
However, despite the advantages of this payment method, there are also some disadvantages. If you are interested in paying with Bitcoin or other crypto coins, you cannot avoid taking a closer look at the matter, because specific knowledge is required. If you have never paid with cryptocurrency, this may not be very easy.
There are several ways to get cryptocurrency and use it for online transactions. This even gives you the opportunity to make the digital currency yourself. However, this requires highly sophisticated softwares and a number of powerful computers. Another method is the so-called “mining”. Several users come together, and the currency is generated together. However, these processes are more for advanced users; for beginners it is just to much to understand and it seems that you need to have a certain passion for the subject to master it.
It is easier to buy Ethereum or Bitcoin on special exchanges. The user creates an account with a provider and can buy Bitcoin with real money. However, it is necessary to enter your own name, which means that anonymity would no longer be fully guaranteed. This basically defeats the purpose of using cryptos to make transactions since the identity would be revealed anyways whether you then go for a crypto transaction or a bank transaction.
Another disadvantage is that so far, only a few casinos offer Bitcoin as a payment method online. However, it can be assumed that the number of providers will increase in the future.
Do cryptocurrencies have a future in online gambling?
Experts are discussing whether cryptocurrency has a future. Some studies show that the influence of virtual money will spread. However, there is also a lot of criticism, for example, because of the high volatility of Bitcoin, the value could rise and fall rapidly within a short time. If cryptocurrency is to establish itself, the value should stabilize beforehand. For this, however, banks and states would have to officially recognize this currency.
Another point to consider would be that there are still no safe solutions to combat hacker attacks; while the currency developers develop strong security systems, the currencies aren't 100% secured just yet!
An important aspect that indicates that cryptocurrencies will increasingly be used in the future for financial transactions in online casinos is the fact that regulators in many countries restrict the classic payment options significantly so that the virtual currency should be used instead. It was recently decided in the UK to stop using credit cards for online gambling. It is expected that other traditional payment options will also be restricted.
Cryptocurrencies offer numerous advantages. Security and anonymity are just a few of the many aspects that should speak for it. An increase in the use of Bitcoin in the online gaming industry can, therefore, be expected. This will become apparent in the next few years. Till then let’s make the most of what is available!