The online casino industry has always been at the forefront when it comes to focus on innovation. Cryptocurrencies, Blockchain, Bitcoin – if you’ve not been living under a rock, you’d know all of these as they have taken the world by storm.
Origin of cryptocurrency
Most of us already know how Bitcoin was founded. In 2008, an anonymous programmer Satoshi Nakamoto published a white paper proposing a new kind of currency that is truly decentralized with no ties to any government or financial institution.
At the time the concept was almost utopian, but the idea quickly caught on and paved the way for quick, secure, and anonymous transactions at all the top online casinos around the world.
Protected by unique cryptographic technologies (hence the term), cryptocurrencies can be used to buy all kinds of goods and services, invest money, and withdraw funds. The concept closely resembles peer-to-peer networks for file sharing. And though Bitcoin is just one form of cryptocurrency, it has become the generic definition of the term itself.
How has it changed online gambling?
Today, cryptocurrencies are widely accepted in all major transactions around the world. In the decentralized network of cryptocurrencies, every single transaction is recorded via the Blockchain technology. It’s a public ledger where all deals that ever happened within the network is available to everyone.
The introduction of cryptocurrencies and the Blockchain technology has made data such as gaming results, winnings, and payouts that is usually hidden from public scrutiny at the conventional online casinos, more transparent. This has led to growing consumer trust in casinos who are always accused of using tricks and scams to steal customer winnings.
Plus, Blockchain’s smart contracts automatically calculate the player winnings and send it directly to them. This way, both parties know that the dealings are transparent.
Not only has cryptocurrencies increased casinos’ player base, but they have also enabled gambling platforms to develop their tokens that can be used as a currency on the platform.
Crypto transactions are virtually irreversible, thus eliminating issues to do with fraud and non- payment that casinos often face.
There is another area where this payment method has revolutionized online gambling. House edge is the average percentage share that casinos take from its players to ensure that casinos keep running.
Since casinos survive on paid employees and profits, house edge can be a costly affair for the players.
Gambling sites that are using the Blockchain technology can reduce fees related to gambling transactions easily because crypto-only gambling sites have little overhead costs compared to regulated service providers. This can include licensing fees, payment to merchants, regulatory compliance costs, transaction costs, and taxes.
Blockchain technology is also automated to a large extent which takes care of the routine tasks done by humans. It not just ensures the highest accuracy levels but also significantly reduce fees associated with gambling transactions. The ultimate beneficiaries are the consumers who can maximize their profits.
The technology, by ensuring transparency, also creates a kind of democratic system that ultimately creates value in the sense that anyone can become a casino member. The structure itself creates a system that ensures security and immutability, and this enables users to fund casinos in return for a percentage of the profits realized.
Pros of using cryptocurrency
The biggest advantage cryptocurrencies offer to the players is anonymity. There is no need to share any financial or personal information. All that a casino sees is a purse number.
Players can also withdraw their winnings easily and use it to pay for other services. They also often get good incentives and bonuses from the casinos who are always willing to court more players.
The financial cost of transactions done through cryptocurrencies works out much cheaper than other methods as there are no middlemen involved.
Casinos benefit too as cryptocurrencies saw a sharp rise in their exchange value. The more transactions happen through them, the more money people will get in their hands to spend.
Cryptocurrencies can’t be counterfeited, and the transactions are super easy. Also, as the transactions are secure, amid all the public instances of data hacks, they offer peace of mind.
Players who are from countries where currencies are comparatively weak have a great opportunity to make money at the casinos by transacting in cryptocurrencies.
Cons of using cryptocurrency
Though cryptocurrencies are gaining a lot of traction, governments and regulatory bodies aren’t too pleased by the idea. There have been instances of governments banning all transactions or the regulatory bodies not recognizing casinos because they accept cryptos as a mode of payment.
As transactions in cryptocurrencies are anonymous, there is a risk of the money being used for nefarious activities. With other payment modes, authorities can track payments, but with cryptos, it’s difficult.
A bit volatile exchange rate can spell trouble in the form of currency risks.
As cryptocurrencies aren’t recognized universally, the transactions could take some time to come through.
Conclusion
We don’t know for sure what the future holds for cryptocurrencies in light of their recent downturn. But consumers have always drifted toward options that are secure and convenient, sidelining everything else.
As long as players have an option to conduct their online gambling activities with anonymity, cryptocurrencies will hold sway. And as more casinos start accepting them, their popularity is only going to increase.
As always, you need to do your due diligence when you decide to play at a casino that accepts these currencies; ensure that the sites are legit and have verifiable track records.
And once the governments recognize currencies like Bitcoin and proper regulations are in place, legitimate players don’t have to fear.
