A little over 10 years since the first decentralized cryptocurrency was launched, encrypted digital financial transactions have become commonplace. Many people now use Bitcoins and other cryptocurrencies to buy goods and services both online and offline and most tech-savvy businesses now accept some form of crypto-payment method. During this period, the value of the currencies has fluctuated wildly and many people profited from buying the currency early on and selling or a profit later. Nowadays, trading in cryptocurrencies is a lot more volatile.
The rise of the cryptocurrency
Many online gambling businesses were quick to adopt cryptocurrencies such as Bitcoin as methods of payment. Bitcoin first appeared in Japan in 2008 and quickly became the pioneering asset in the sector. The technology used to protect payments is appealing to those who want to make or receive regular payments online, so it was no surprise that many online casinos and sports betting businesses started to take notice.
By offering total anonymity and a decentralized approach to financing, Bitcoins and other cryptocurrencies offer a greater level of security to users at both ends of the transaction. The main drawback for early users was the process required to actually obtain and store bitcoins but this is now becoming easier thanks to improvements in electronic wallet technology.
Main benefits for players
Cryptocurrencies offer users total anonymity. The number of the purse is known and can be tracked but there is no requirement to identify yourself when using Bitcoins.
In most cases, there is little or no commission involved unlike with other currency exchange systems. And each transaction is instant which means there is no need to wait for funds to clear when depositing to or withdrawing from an account. Specialist Bitcoin casinos such as BitStarz and PlayAmo, as reviewed in this source, also offer special bonuses for new cryptocurrency players who sign up.
Bitcoins and other currencies also allow players to play from anywhere in the world, giving them the ultimate in gaming freedom. And everything contained within the purse is protected, so accounts cannot be blocked or frozen by any authorities. Overall, cryptocurrencies are faster and more secure than any other payment method.
“Silver Bitcoin on the poker table with c” (CC BY 2.0) by wuestenigel
Main benefits for operators
For online casino operators, cryptocurrencies remove a lot of the hassle that comes with accepting payments from government-issued currencies. New casinos can be established much quicker and licensing is not required. What’s more, the relationship between the operator and the user is much more streamlined with cryptocurrency. All of this means that costs are also a lot lower for the provider.
With less than 20% of online casinos currently offering cryptocurrency transactions, it is still a minority market. And while accepting these currencies may not suit all businesses, having a self-regulating, decentralized system makes sense for online operators and many more are likely to join the list. Some may specialize in cryptocurrency, while others may offer digital and traditional transaction options. But it seems clear that cryptocurrency transactions are still a big part of the future of online casinos.