Since launching in 1994, iGaming, including crypto casinos (the first in 2014) and Bitcoin gambling, has experienced a meteoric rise, most notably during the COVID-19 pandemic that saw mandatory temporary closings of brick-and-mortar casinos and shelter-at-home orders issued in early 2020.
According to one study that surveyed more than 2,000 people in Australia who gambled across the country between June and July 2020, nearly one in three survey participants created a new online betting account during the global outbreak of coronavirus, and one in twenty started gambling online. Furthermore, the study found that even with limited access to gambling venues, those surveyed gambled more frequently during COVID-19, with those gambling four or more times a week increasing from 23 percent to 32 percent.
Some key factors that have contributed to significant changes in the online casino sector and the rise in popularity of online casinos are convenience, privacy, increased security, more games and payment methods including digital currency such as Bitcoin. The growth of crypto casino sites has been a catalyst for online gambling’s leap forward, as these unique platforms leverage the power of blockchain technology and provide players with a host of benefits including security, transparency and decentralization like they’ve never experienced before.
Benefits of Blockchain Technology in Cryptocurrency Casinos?
Security
Among the many benefits of cryptocurrency casinos, enhanced security is at the top of the list. Much like brick-and-mortar casinos, security vulnerabilities, such as fraudulent activities and data breach risks, are often an issue for traditional online casinos. Blockchain technology, however, utilizes cryptographic techniques that ensure that player data and transactions are secure. All transactions on the blockchain are encrypted and connected to the one before, which makes it practically impossible for a hacker to manipulate or alter the data.
Decentralized Platforms
This game-changing technology has completely transformed the iGaming landscape and one major benefit is decentralized platforms, which is what cryptocurrency casinos operate on. These platforms eliminate the need for middlemen such as payment processors or banks. Transactions are carried out between the online casino’s blockchain-based platform and the player’s digital wallet. By carrying out transactions directly, in this manner, both processing times and transaction costs are reduced. Furthermore, because decentralized platforms impede censorship and intervention by the government, players are afforded greater independence and control over their resources.
Provably Fair Algorithm/Fair Gaming
Because crypto casinos leverage the blockchain technology that comes with cryptocurrency, those who use virtual currency for online gambling find that it provides an additional layer of security when compared to traditional methods such as credit cards and bank transfers, as well as an immutable record of all transactions. Transparency and trustworthiness are things players can count on and go a long way in ensuring a fair gaming experience. Unlike traditional online casinos that rely on operator integrity for the fairness of games, cryptographic algorithms are utilized by crypto casinos to produce random outcomes. What’s more, the fairness, randomness, and validity of game data can be verified by players by simply checking the casino’s cryptographic hash function (CHF).
Those key factors along with others such as global accessibility, transaction speed, lower transaction fees, innovative gaming experiences, the potential for the value of virtual currency like Bitcoin to increase, and a growing market, all contribute to the rising popularity of crypto gambling.
Bitcoin Gambling
Bitcoin was launched in 2009 and is still the most well-known cryptocurrency of all the major digital currencies available, such as Ethereum, Tether, Litecoin, and others. Sending Bitcoin is typically up to 48x faster than an international wire transfer while at the same time is generally 60x more cost-effective. Accordign to industry experts, regarding cryptocurrency betting, using Bitcoin to gamble is at an all-time high, holding a majority share across iGaming brands.
Advantages for Players Using Bitcoin for Gambling
As noted, because Bitcoin is decentralized and a central regulatory authority is non-existent, your virtual currency can not be taken away from you, nor can your “crypto account” be frozen. You have complete control over your transactions and you alone own your money. Moreover, because you are not required to provide any personal data with Bitcoin transactions, you are better protected from identity theft. Another key feature of Bitcoin is that there are no chargebacks due to Bitcoin transactions being immutable. This means that it is impossible for any entity, such as an individual, corporation, or government, to manipulate, in any way, data stored on the network.
Bitcoin is also private, fast, has low transaction fees, and depending on where you live, is not always taxed. Treated as property for tax purposes in the US, you will pay taxes on cryptocurrency if you sell it or use it in a transaction, and it increases in value from the purchase date. Always remember, you have to comply with local gaming legislation.
Sites such as GamblingBitcoin.com, provide information specific to Bitcoin players while also providing reviews and comparisons of Bitcoin sports betting and poker sites, along with roulette and various other games, to help you choose the sites right for you.
Keep in mind that the best crypto and Bitcoin slots websites offer potentially lucrative bonuses with cryptocurrency users in mind. These type of “perks” can significantly enhance your gambling experience. Online casinos that accept payments in BTC exclusively tend to be the go-to for players interested in cryptocurrencies and who appreciate anonymity.