Cryptocurrencies, and in particular the blockchain technology on which they are based, are leading the change in various industries.
The online gambling industry is no exception to this trend. In this article we will look at the blockchain, cryptos and their impact on online casinos and online sportsbooks.
Blockchain technology in detail
Blockchain is a distributed ledger technology that allows transactions to be tracked in a secure and transparent manner.
Essentially, the blockchain stores an irreversible historical record of all transactions . Each new transaction is stored in a “ block ” and then added to the existing chain, hence the term “ blockchain ”.
An example for a better understanding : If Joachim Sabine sends money via the blockchain, this transaction is stored in the blockchain and can be viewed worldwide.
If Sabine accepts the money, the acceptance is also recorded. This transparency and security ensures that no party can dispute the transaction. The “transfer” on the blockchain is therefore irreversible and final.
The Impact of Cryptos on Online Gambling
The advent of blockchain technology paved the way for the emergence of new digital currencies such as bitcoin, litecoin, zcash, and thousands of others.
Cryptocurrencies offer users several advantages over traditional bank transfers.
They offer:
- Low fees
- Fast transaction speeds
- A reduced risk of fraud
Furthermore, these transactions can be performed without identification, providing an additional layer of privacy for users.
Bitcoin transactions can be viewed by anyone, but you can send BTC quickly and easily without prior verification by a higher authority.
According to reports, about half of all Bitcoin transactions are related to gambling . This shows the massive impact that cryptocurrencies are having on the online gambling industry.
Online casinos such as mBit Casino , BC.Game and MetaSpins accept various cryptocurrencies. Deposits are completed very quickly, but the biggest advantage is the speed of withdrawals.
Casinos with cryptocurrencies convince here with extremely fast payouts that no regular online casino can keep up with.
Also Read: Pay with cryptocurrencies when buying gaming? How it works!
Main advantages of cryptocurrencies in online gambling
Cryptocurrencies also offer numerous other advantages for online gambling. Here are the main ones:
1. Transparent Transactions
Cryptocurrency transparency is a boon to the online casino industry. All transactions on a blockchain are publicly recorded.
This means that transaction history can be independently audited and verified , providing an extra layer of security for you as a user.
2. Fast Transactions
Conventional payment methods are often associated with long processing times. Deposits and withdrawals from the house bank can sometimes take up to five working days.
With cryptocurrencies, on the other hand, transactions are usually completed within minutes. The fast processing times of cryptocurrencies are therefore particularly advantageous if you want to start playing right away or don’t want to wait long for your won money.
3. Secure Transactions
Cryptocurrencies are based on the principles of cryptography, which offers a high level of transaction security.
The nature of the blockchain ensures that every transaction is encrypted and distributed across a network of computers, making it almost impossible to alter or falsify transaction records .
This makes Bitcoin Casinos very safe and, above all, your money is in good hands. Another advantage is that the decentralized nature of cryptocurrencies significantly reduces the risk of attacks by hackers, since there is no central office that stores confidential data.
4. Lower Fees
Cryptocurrencies do not require a third party and enable direct peer-to-peer transactions. This eliminates the fees associated with traditional payment methods such as bank transfers or credit cards.
Players can transfer funds to and from online casinos with minimal transaction fees , allowing them to keep more of their winnings.
This feature not only saves money but also speeds up the transaction process. Without the need for intermediaries to validate transactions, deposits and withdrawals are completed faster than before.
Disadvantages of using cryptocurrencies in casinos
Where there is light, there is also shadow. If you use casinos with cryptocurrencies, there are of course also disadvantages that we do not want to hide from you.
Volatility
Cryptocurrencies, especially Bitcoin, are known for their volatility . The value of these digital currencies can fluctuate drastically in a short period of time, which can pose a risk for both players and online casinos.
A player could win a bet worth a certain amount in bitcoin one day, and the next day the same amount could be worth much less.
Cryptocurrencies like Bitcoin and Ethereum are subject to market dynamics, including the forces of supply and demand, which can cause their value to fluctuate quite significantly.
For example, if a player wins 1 bitcoin, which is worth $50,000 at the time of winning, and the price drops to $30,000 the next day, their win would essentially lose value.
Missing regulations
The decentralized nature of cryptocurrencies means that they are not subject to traditional financial regulations, which can pose a challenge for both casinos and regulators.
While this allows for freedom and flexibility, it could also expose players to unregulated practices and potential fraud.
Likewise, the anonymity they offer can complicate responsible gaming strategies such as self-exclusion and data collection for responsible gaming practices.
Conclusion
The emergence of blockchain technology has undeniable benefits to the online gambling landscape. They made transactions faster, more secure and more transparent.
In particular, the easy and quick start without lengthy verification appeals to many customers. The fast payouts at these casinos also catch the eye.
Also Read: How Can The Use Of Blockchain Improve Online Casinos?