The online gambling scene is growing, and not just because people are finding it more convenient to gamble from their own homes, but because today’s technology is pushing online casinos to keep up with new demands.
Cryptocurrency first broke out into popular culture in 2009 with Bitcoin. Since then, it has expanded to a variety of currencies including Litecoin, Ethereum, and Ripple.
All cryptocurrencies essentially utilize a technological structure known as the blockchain, which is an encrypted list of records. Blockchain records are incredibly secure, and they allow cryptocurrency users a high degree of anonymity.
The original cryptocurrency, Bitcoin, was created by an unknown person or group of people under the name Satoshi Nakamoto. It’s a decentralized system that relies on a peer-to-peer network. It’s also entirely public, and so anyone can be a part of it, and anyone can maintain it.
Although the value of cryptocurrency is constantly fluctuating, and a lot of people don’t really understand how cryptocurrency works, it has nonetheless become a popular and commonly-used form of currency.
A lot of people have supported the rise of cryptocurrency. They not only invest in cryptocurrency because of its growing value over the last few years but also because of its decentralized structure and lack of central banks involved.
With cryptocurrency making waves through the digital world, it’s no surprise that it became incorporated into online gambling. Using cryptocurrency rather than fiat currency, which is backed by a government, can be advantageous for both the online casino and its users.
If you’ve never heard of cryptocurrency, you probably will soon. And if you enjoy online gambling, here are five ways that cryptocurrency has transformed the world of online gambling.
- Lower fees and fewer limits
Unlike traditional payment systems, using cryptocurrency often requires very low fees and fewer transaction limits. Using credit cards, money transfers, and bank wires can charge fees around 6% or more. Also, these payment methods cannot be used if there are restrictions on online gambling where you live.
Credit cards can also be dangerous to use in online gambling because you can rack-up a lot of debt. Bank wires are also usually advised against because on top of the transaction fees, there are also fees involved in exchange rates.
While checks can be a cheaper option, they take a long time to process. So, online gamblers, usually stay away from them.
So on top of the already expensive gambling taxes, using a payment system that’s reliable and has fewer fees can save you quite a bit of money. According to Gambler’s Daily Digest, the gambling tax structure can be incredibly complex, depending on where you are. In America, there are taxes at both the state and federal levels, in addition to the variation between types of gambling games.
With all of these fees and taxes that get applied to every dollar of your winnings, it’s no wonder people are switching to cryptocurrency.
- Safer and Faster Payments
A lot of online gambling websites either have a cryptocurrency option or are cryptocurrency-only. Enrolling in an online casino can be a tedious process, taking around 24 hours for the site to confirm your identity and let you start playing.
This also applies to when you withdraw money. Online casinos can take another 24 hours or longer to process your withdrawal.
These processes, however, have been accelerated with the use of cryptocurrency. It allows for anonymity and more secure transactions because cryptocurrency payments are generally decentralized.
Also, the use of blockchain technology makes sure that third parties cannot decipher the transfer between the two parties involved. According to Gambling News Magazine, cryptocurrency can help protect gamblers from fraudulent activity.
- “Provably fair” gambling
Many people are skeptical about online gambling. A commonly-cited reason is that it’s easy for an online game to be rigged unfairly. Since online gambling games are all code, it feels like the chances of someone tampering with the code to make you lose is a substantial concern.
The rise of provably fair allows online gamblers to ensure that the games they’re playing use truly random, random number generators (RNGs). Since cryptocurrency uses a blockchain, all transactions are public record. This means that all purchases and payouts can be viewed and can’t be falsely recorded.
Although there are other parts of online casino games that are usually kept from the public eye, most platforms have chosen to be open about these, allowing players to confirm the fairness of the games they play.
- Gambling Laws
Gambling is not legal in all parts of the world. And in some countries, gambling laws are stricter than others.
Payments through typical channels can be tracked and flagged, making it difficult to gamble online. However, since cryptocurrency, like Bitcoin, are entirely anonymous, using cryptocurrency can enable you to bypass restrictions.
- Cryptocurrency Bonuses
According to Lucian Marinescu at OnlineCasinoGems, “to increase online gamblers’ use of cryptocurrency, many online casinos offer bonuses and free spins. This is a great way to incentivize players by allowing them to win more with a lot less. Although players should always read the fine print before accepting any of these bonuses, taking advantage of these promotional offers can give them a head start on making money.”
The cryptocurrency-related bonuses are especially advantageous, because you’re getting credits and spins to not only start playing, but also start in a safer and fairer environment.
According to Weekly Slots News, the growth of cryptocurrency and its use in the online gambling market has led to an increase in demand for online gambling games. They note that over 24.5 billion bets had been placed using Bitcoins over the course of the last two years. Users are enjoying the ‘privacy-centric’ gambling that cryptocurrency offers.
As cryptocurrency continues to play a role in the growth of online gambling, the future of online casinos seems bright. The higher demand and popularity for online gambling is causing countries to rethink gambling laws and restructure their restrictions. In addition, new, more innovative games are hitting the scene, enabling online gambling to improve and evolve.
