Bitcoin is transforming the online crypto gambling landscape as the internet has also morphed into online casinos in the 90s. How can this digital currency have an impact on the gambling industry? Why are people gambling with Bitcoin?
Let us answer these questions by talking about what cryptocurrency is about as well as the benefits of gambling on online Bitcoin casinos.
Brief Introduction to Bitcoin
Acting as a new alternative payment method in the digital age, Bitcoin is an answer to the limitation of fiat money. Despite the name, Bitcoin is a digital wallet that records how much money flows out of it and not a computerized coin or cash. All payments made with Bitcoin are recorded in a permanent and public digital ledger that everyone can audit it in real-time.
Certain UK online casinos have adopted cryptocurrency to their platform while new platforms have built-in support for BTC and other altcoins. On the other hand, certain gambling websites decided to form their platform around cryptocurrency by creating their Bitcoin casino such as Bitcoin dice sites, or even Bitcoin-only poker and betting sites.
5 Benefits of Bitcoin Gambling
A large group of online punters has been buying and using Bitcoin to gamble, over fiat currencies for several reasons, and the crypto gambling market keeps on growing.
Let's review why Bitcoin gambling is beloved by its community.
Decentralized currency
One major difference between Bitcoin and nearly all altcoins is the lack of a central office controlling the currency. It is important to note that all fiat currencies are issued by the central bank. With control over the currency, banks can significantly influence the value of any money they issue.
While this may not seem like a problem for most developed countries, people in certain nations experienced the collapse of their fiat money's value. Imagine winning the progressive jackpot, a one-in-a-million chance of achieving. That would have been a short-lived victory when the total payout amount was just enough for a soda can.
Fortunately, Bitcoin is a decentralized currency where there are no banks around the world controlling the digital currency. Even if the dollar or pound collapses, the digital currency's value will stay the same or continue to grow. Certain punters are growing their digital wallets through BTC gambling just to position themselves for a major payout as the cryptocurrency value keeps increasing.
Provably Fair Games
One of the common issues players have with online casinos is the lack of transparency. While legitimate casinos offer a compromise by showing the slot RTP and volatility, there is no way to see the algorithm at work to know if a random result is authentic.
One of the bitcoin casino advantages is their way of using Blockchain technology to their games through the provably fair algorithm. Games using this algorithm work the same way as regular online gambling games.
What makes provably fair different from any PRNG algorithm is with the seed coming from the operator and your computer. You can see and create a seed from your end while the operator's server provides a hashed or encrypted seed. Any results generated by the provably fair algorithm can be recreated with the hashed seed and your deed, ensuring that the result was authentic.
It is important to note that the provably fair algorithm does not provide any opportunity for hackers to manipulate the game. Because of the hashed seed from the server's side that cannot be deciphered with today's computers, it is virtually impossible to know the result of provably fair Bitcoin games.
Privacy
Everyone values their privacy for various reasons. Players they do not want any gambling-related transactions showing on their credit card billing. These players are likely to avoid any confrontation or embarrassment among their relatives and friends regarding their spending with online casinos. On the other hand, players want to keep their online casino transactions secret because their region is strict on online gambling.
Privacy is one of the major crypto casino advantages that a majority of players around the world enjoy. Unlike credit cards or bank accounts, it is possible to buy Bitcoin without using your real name, address, phone number, or social security number.
Cryptocurrency gambling pros can also avoid prying eyes from their government offices or dangerous hackers by implementing a VPN with their transactions. Once you are ready to convert your winnings, you have several methods to sell your BTC such as a Bitcoin ATM or cryptocurrency exchange sites that do not have a KYC policy.
Removing Geolocation Restrictions
Various countries and jurisdictions have a network blockade to online casinos that prevents any of their residents from gambling. Notable examples are Qatar and Cambodia. Developed countries also have states or areas where online gambling is illegal such as Utah and Hawaii.
There are workarounds for passing the geolocation restrictions set by the IP within strict areas such as using a VPN service. Bitcoin betting sites are also unrestricted in most areas since they tend to be passed off as entertainment websites instead of gambling sites. While players in strict areas can access gambling sites, the issue is still the payment. Banks and other financial institutions are likely to penalize any transactions made to online casinos.
Getting around restrictions set by jurisdiction is one of the many benefits of Bitcoin. Internet providers have no means of blocking or even tracking cryptocurrency transactions.
In areas that are open to cryptocurrencies, you can find local cryptocurrency exchanges that let you deposit or withdraw money using your region or country's payment services. If there are no local exchanges available and payment services do not accept transactions to international exchange sites, you can still use an escrow service such as LocalBitcoin. Because of its nature as an escrow service, you can use any payment service in your country to buy or sell Bitcoins with other people through LocalBitcoin.
Transaction Speed
Fast withdrawal speed is the likely reason why people flock to Bitcoin casinos. Fiat currency can takes days to complete since it passes through an intermediary or third parties to verify the transaction. There is also the factor of business days to consider. If you withdraw your winnings on a Saturday, your money will only start the process of moving towards your bank or credit card on Monday.
On the other hand, Bitcoin is free from any institution control and does not require any intermediary. Withdrawals from Bitcoin casinos are done instantly or well within the day. Since BTC is also decentralized, you do not need to worry about the weekend or any bank holiday. Cryptocurrency winnings you withdraw on a Saturday will reach you within that day or on Sunday.
Bitcoin, much like the internet, has had a significant influence on the gambling landscape with its numerous benefits. As more cryptocurrencies are made and gambling sites accept various altcoins, online casinos are becoming accessible to various players around the world.
This article was published on April 14, 2021, and last updated on May 26, 2022.