Cryptocurrencies have been around for the last decade, and gambling with Bitcoin is the most popular and well-known by far. when you consider the popularity of online casinos and the various payment methods, it was inevitable that Bitcoin would be next in line. The rise in powerful blockchain technology has made many industries change how they approach conventional business practices.
Unlocking new markets
The rise of Bitcoin has enabled casinos to reach markets previously locked away from them, mostly due to laws and legislation. Casinos and gambling companies have always moved in a highly regulated space, and for a good reason.
In the last few years, casinos can now reach players in countries that previously blocked players from registering and making payments to these online casinos. Players can now register anonymously and transfer funds without the oversight of local governments.
Recently, many countries have softened their approach to online gambling or are in the process of relaxing laws that govern this space and unlocking additional revenue streams.
How to use Bitcoin
When making a deposit to a casino with your fiat currencies, it is a very straightforward process. The transaction is done as you would any other purchase that is made online.
With Bitcoin, this process differs slightly and might seem a little daunting to most people at first. However, like any modern technology, it becomes second nature once you get the hang of it.
The prospective Bitcoin user would first need to register an account with an exchange where they would like to purchase the Bitcoin. Most times, you would need to verify this account. However, there are options available to those who would rather stay anonymous. After registering an account, you purchase your Bitcoin using a debit or credit card in the same way as any other online purchase.
The exchange credits the Bitcoin to your wallet that can hold your Bitcoins. Each of these wallets has a unique address only available to the person who created it. You then transfer this Bitcoin from your wallet at the exchange to your casino wallet in much the same way as a bank transfer, using your exchange wallet as the recipient address. Depending on how busy the network is, your coins might show up in minutes or, in the worst-case scenario, within hours, ready to be used by you.
To withdraw your funds, you would simply reverse the process and ultimately receive your money back on your credit or debit card.
Convenience and Safety
Online transactions have become increasingly faster and safer with blockchain-based currencies compared to the more traditional banking methods and cash transactions. No more waiting for transaction approvals from any central bodies. Bitcoin transactions are almost instant, safe and secure. There is also no need to provide any personal information, which is a foremost priority for most consumers these days.
Even though traditional deposit methods offer users many benefits, there are still risks involved. Some are more vulnerable than others to hackers or cyber criminals, who can get away with more than just your personal information and quite possibly your hard-earned money, too. Blockchain technology prides itself on having extra measures in place to protect your information and your funds.
The most significant advantage of using cryptocurrencies such as Bitcoin is the anonymity that is synonymous with blockchain transactions. Transactions are encrypted from beginning to end and recorded safely and securely in blockchain journals, which means they cannot be changed, edited, or manipulated in any way. Player data is hidden from external sources, keeping your gaming experience private and anonymous.
Online casino gamers aim to make money, and part of their strategy is to minimise transactional fees. They would much rather spend their funds maximising their returns when betting at online casinos. This is where cryptocurrencies have become a significant change in the betting industry. Due to the elimination of third parties during the transactional process, fees are kept to a minimum.
As are no intermediaries in a decentralised network, fees are much lower than traditional banking fee structures. Conceptually, fees are proportional to the speed with which nodes or miners validate a transaction on the blockchain. Often at peak transactional times, the “gas” fees for transactions become higher as the price of the cryptocurrency rises. Most wallets will allow you to adjust your transaction in favour of a speedy cryptocurrency transfer or a lower fee. However, this may cause delays of hours or sometimes days.
More than just Bitcoin
Bitcoin has for a while now been synonymous when talking about cryptocurrencies, mostly because it was the first cryptocurrency. Since the release of Bitcoin, things have changed, and there are now more altcoins available than ever before. Most of these altcoins positioned themselves to fill a specific niche, such as low transaction fees, anonymity, or less volatility.
Many online casinos now accept these altcoins because of the benefits that they bring to the table. Players can now make faster deposits and withdrawals thanks to these crypto variations. There is more security than offered by banks or even Bitcoin itself since the technology they are based on is much newer than Bitcoin. Some of these altcoins, known as tethers, are closely tied to fiat currencies and do not fluctuate like other cryptos, thereby providing a stable coin for players to use.
Future of Crypto in the Online Gaming Industry
Some believe that cryptocurrency may become the primary source of funding for online casinos in the not-so-distant future. More gambling websites are providing the necessary software to enable cryptocurrency funding, catering to an array of coins, including Bitcoin, of course. Those who have not moved with technology are most definitely losing out on a potentially loyal audience, as the next generation of gamers is very much tech-savvy.
Online gambling is an extremely lucrative business, and its ability to adapt and grow with technology will measure its success. Whatever your stance on Bitcoin and online casinos, one thing is certain: they are here to stay, and their futures are intertwined.