Bitcoins were created in early 2009. At the same time, the developer of a unique digital currency, Satoshi Nakamoto, made the first transaction using blockchain technology. A little over 10 years later, cryptocurrency has evolved into one of the leading ways to serve a wide range of industries, including the iGaming industry.
Gambling has become one of the most promising vectors for the use of digital currency. Today, almost 50% of all transactions in the virtual gambling business are carried out using bitcoins. Modern casinos all over the world connect the crypt to payment instruments, narrow-profile cryptocurrency platforms are launched. This article provides the current rating of UK bitcoin casinos by Qyto. At the same time, the work of a casino with digital currency has not only advantages but also disadvantages.
What are the advantages of using cryptocurrency in an online casino?
There are a number of good reasons why gambling clubs are massively switching to crypto, and players are abandoning more traditional payment methods in favour of digital currency. The most significant of them:
No commission and transaction fees. The circulation of digital currency takes place in decentralized networks. Accordingly, there is no single institution or institution that would benefit from fees, commissions and payments. The only fee that is charged to users is the miner’s commission for the transaction. Its amount is sometimes only 0.04 dollars, which is significantly less than in any other financial institution.
Transaction speed. A payment using crypto coins is processed much faster than transfers through traditional financial institutions. In most cases, it takes no more than a few minutes to verify and make a payment.
Safety. Thanks to the use of blockchain technology, a digital currency transaction cannot be cancelled or rejected. The history of all operations is stored in the system and any attempt to change the history is rejected. Thus, crypto transactions are absolutely safe and leave no room for fraudulent activities. Casinos that use such a currency enjoy increased user confidence.
Anonymity, complete confidentiality of players. To replenish an account or withdraw winnings using digital currency, you do not need to provide personal data. All you need is a bitcoin wallet address and keys. The identity of the gambler remains anonymous. Thanks to this, even players from countries where gambling is prohibited can freely play online casinos and withdraw their money.
There is a large layering of the audience of online casinos and cryptocurrency enthusiasts. Both the iGaming industry and bitcoin attract a similar demographic: young people who are interested in technology.
At the moment, there are several crypto-casinos, there are affiliates that are able to bring a crowd of crypto-lovers. Affiliate sites compare bitcoin and blockchain casinos and send traffic to their partners.
Why do players like crypto casinos?
Players love crypto casinos for many of the same reasons why operators love them:
Instead of having the support of some state, as is the case with the national currency, the cryptocurrency is backed by a decentralized ledger, which contains data on all transactions. This registry is widely distributed with a million copies. This has several results: first, anyone with access to the network can verify the transaction; secondly, the history of bitcoin cannot be faked. Any attempt to falsify a network block will affect all blocks. Players value the transparency and security that comes with decentralized public records.
Although cryptocurrencies are completely transparent, they also provide higher anonymity. The fact that the transaction history of cryptocurrencies is embedded in the blockchain is already sufficient proof of identity. This does not guarantee 100% anonymity, the e-wallet address is recorded in the blockchain, even if the name and email of the holder are not.
What are the disadvantages of using digital currency?
With all the above advantages of coins, there are a number of significant drawbacks that hinder their development in the gambling industry. The disadvantages of using digital currency apply to both providers and players:
Currency volatility. Of course, digital currency is very unstable. A serious imbalance between the money that players invested in bitcoins and other coins, and the amount that was eventually withdrawn from the account, can be a significant reason for not using them. For this reason, many gamblers prefer more stable dollars and euros.
Unpredictability. Bitcoin and blockchain are still too new and progressive technologies, almost no expert can predict their development. It is impossible to predict what market changes will lead to the rise or fall of bitcoin. Of course, such unpredictability does not inspire confidence among users.
No specific legal status. In many countries, the authorities have not yet legalized the circulation of digital currency. Until the state has indicated its attitude towards it, users cannot be sure of the legality and safety of their funds.
Hacker attacks. There have already been several high-profile security breaches on the crypto exchange market. Hackers stole millions of dollars in bitcoin from accounts and appropriated a huge array of personal data of the owners. Therefore, many continue to adhere to the opinion that no matter how safe a digital currency is, it is still not perfect and cannot guarantee the safety of funds one hundred per cent.
Today it is rather difficult to predict how fast digital currency will develop in the gambling entertainment industry. Of course, bitcoin casinos today are significantly ahead of their competitors. However, further growth depends on the progressive attitude of the government towards digital currency and the willingness of gamblers to take steps towards the future.