Introduction to Bitcoin Casino Gambling
Consumer appetite for convenience, speed and cost-effectiveness has facilitated exponential growth within the virtual economy. The economic benefits of such services include the ability to transfer funds internationally with ease – away from often expensive banking fees, the opportunity for small online vendors to enable payments without incurring high merchant charges, and the capacity to protect personal wealth against the threats of hyper-inflation. However, what opportunities has this created for the estimated $47 billion online gambling industry? Let’s take a closer look into the emerging Bitcoin Casino niche.
What is Bitcoin?
In its most basic form, digital currency is a “digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value”. The original, and still the ‘de-facto’ de-centralized digital currency is Bitcoin, which at the time of writing has a total market capitalization of 60% of the total digital currency market share. Cryptocurrency transactions that are de-centralized rely on peer-to-peer blockchain technology, and as such, are not backed or controlled by any single authority or central bank, nor are they governed by any nation state. Subsequently, in the era of digitalization, the traditional concept of fiat money is being challenged.
Bitcoin vs Traditional Payment Methods
The most common payment method when engaging with online casinos is in the form of a debit or credit card. Although this affords the player with the convenience of instant deposits, it also carries certain flaws that Bitcoin is able to alleviate. Firstly, the user must provide sensitive financial data which is then consequently stored by the operator. This is not required when depositing with Bitcoin as the player can transfer funds directly to the casino from their external digital wallet. Furthermore, when it comes to withdrawing winnings, traditional payment cards often require days before the funds are returned to the player’s bank, potentially even longer if opting for a direct bank wire. Due to the speed that Bitcoin’s cryptographic framework can process transactions, players are often paid out significantly faster.
Moreover, as traditional payment methods require a third-party intermediary to validate a movement of funds, the casino operator will often have to incur high merchant fees in the region of 4-9%, which consequently may be passed on to the player. Without the operator having to worry about fraudulent deposits or credit card chargebacks when using Bitcoin, players can benefit from greater incentives such as bonuses and free spins at a Bitcoin Casino.
Privacy and Access
Casinos facilitating Bitcoin deposits also offer new layers of transparency that are not present with conventional casinos. This is because of the Blockchain technology, which effectively acts as a public accounting ledger by allowing anyone to view historical transactions. The value that this adds to the player is that they can check the casino operator’s public Bitcoin Casino address to ensure that they hold sufficient funds to honour potentially large wins, rather than relying on trust. The Blockchain can also help verify a missing deposit or the status of a pending withdraw, as once a transaction has been initiated by the online casino, it is available to view on the public ledger as quickly as 10 minutes. There may also be instances where players prefer an element of privacy when using online casinos, potentially related to personal, legal or taxation consequences. As Bitcoin addresses offer users pseudonymity – effectively avoiding any connection between the address and the players identity, Bitcoin casino deposits and withdrawals can remain private, rather than appearing on a user’s bank statement. Moreover, in certain jurisdictions where online gambling is prohibited, players are free from regulatory burden and banking controls. This includes the requirement to supply countless documentation such as sensitive identity cards and taxation forms. Furthermore, with Know-Your-Customer controls becoming ever more stringent, such as requiring a player to get documents notarized by a local official, casino players can relax with the knowledge that they can withdraw their winnings burden-free.
Financial technology has evolved tremendously since the turn of the century, benefiting both consumers and businesses alike. Long gone are the days of expensive, slow and time-consuming barriers when attempting to spend and receive funds online. The online casino industry is not immune to these benefits, thanks partly to the growth of cryptocurrencies such as Bitcoin. Stringent regulatory burdens are now a thing of the past, with casino players able to avoid long delays when both depositing and withdrawing funds, as well as having to pay unnecessary transaction fees. Bitcoin has also allowed security and privacy to improve, by removing the need for players to provide highly sensitive data, including credit card details and financial records. This has allowed online casinos to spend less time and money on regulation, and instead focus their resources on the things that matter – the player experience. Larger bonuses, more frequent free spins and higher pay-out ratios are just some of the many benefits that this has afforded. So what are you waiting for? Experience the joys of Bitcoin gambling today!