The future of online gambling: bitcoin casinos vs traditional services

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The future of online gambling:  bitcoin casinos vs traditional services December 7, 2020

The modern world chose technological efficiency. And cryptocurrencies have become a subject of current interest. People start to understand the benefits of digital money nowadays. In the active process of transformation of payment systems, bitcoin has penetrated many areas of business. It doesn’t concern only the IT-industry. Banks, retail facilities and hotels are also interested in bitcoin. But one of the most emerging sectors for virtual currency is online gambling. And while traditional businesses just start to pay attention to cryptocurrency, a variety of gambling platforms are investigating how to use its scale and advantages in the best way. Many of those online casinos that took a risk to build a business around bitcoin earlier (or add cryptocurrency as a possible payment method) now continue to operate successfully.

The Bitcoin attractiveness refers to a very reliable payment system: it doesn’t use intermediary monetary transactions, and internal transfers are fast and inexpensive. Also, operations with cryptocurrencies imply the protection of personal data, since this digital money ensures the anonymity of users and does not depend on inflation. Therefore, Bitcoin is the ideal money system to use it in online casinos.

Most gambling platforms provide gradually the possibility to deposit and withdraw funds with Bitcoin. The most innovative and advanced businessmen have already fully converted their online casinos to digital currency. This technology becomes an integral part of the business and provides entrepreneurs with new opportunities, often changing the very essence of traditional business models. Today, the number of cryptocurrency casinos is constantly growing. In this article, we’ll consider the readiness of gambling industry representatives to accept bitcoin.

Everything You Would Want to Know About Bitcoin Casinos

Bitcoin casinos are a gambling platform where you can make bets and get winnings with BTC. Some online casinos use only this kind of digital currency, but there are others where Bitcoin is simply listed among the available cryptocurrencies. The Bitcoin payment system is very reliable — while making payments, it does not use intermediaries, and internal transfers are fast and inexpensive. Also, digital money ensures the anonymity of users and assumes personal data safety.

The advantages of bitcoin casinos 

Bitcoin casinos become popular for several reasons that make them more user-friendly and more reliable than traditional gambling platforms. Maximum user protection from fraudsters’ access to the e-wallet and account blocking, clients’ anonymity are not the only advantages. Most bitcoin casinos have zero transaction fees. Traditional casinos with money that aren’t secured by gold and other precious metals (fiat money) have limits and fees. Bitcoin casinos confirm the guaranteed withdrawal of funds and allow you to make small deposits. It makes them attractive to novice gamblers. You can play at a crypto casino, as well as withdraw funds worldwide. Due to the anonymity of transactions, even residents of countries where gambling is prohibited can do this. Bitcoin casinos don’t require customers to provide all data and verify identity. Players are attracted by the opportunity to make minimum bets when there are no options to spend much money, but it is quite possible to multiply the cryptocurrency capital.

The clients’ anonymity is not the only advantage of great importance in the gambling industry. Let’s examine the main advantages of crypto casinos over traditional gambling services.

 

The benefits of digital currencies

Confidentiality. 

As we’ve already mentioned, the most significant advantage of Bitcoin is the ability to remain anonymous. Traditional casinos require the client to confirm his identity with the appropriate documents or provide a bank account with its further verification. But, not all clients want to share their data, and some of them don’t even have such an opportunity.  

 Your money is always only yours. 

The weak point of traditional services in front of bitcoin casinos is the security service, which can block a client’s account at the slightest suspicion of fraud. Sometimes, it’s enough to share the same game with scammers who launder money to lose access to your account forever. In this case, the security service will block the user’s account and close access to funds (in favour of the casino). In cryptocurrency casinos, it’s impossible to block a client’s account due to suspicion of money’s origins. This is one of the main bitcoin advantages in action — the client’s money belongs only to him.

The lowest rates. 

It’s known that one bitcoin is 100 million satoshis. This possibility to divide bitcoin into small parts is a great advantage for cryptocurrency casinos. You have the opportunity to play for the minimum amount of 0.00001000 BTC (1000 Satoshi), which is equivalent to $ 0.002 today. Thus, the doors of crypto casinos are open for all categories of gamblers: both for experienced high rollers and for those who just want to play their favourite games with the lowest bets.

High market competition.

Launching a crypto casino isn’t much expensive in comparison with Bitcoin exchanges. Therefore, the dynamics of supply growth is quite high and gives strong competition in this market, which makes us fight for our customers. On the online gambling market, there are quite large and well-experienced players who operate only with traditional payment systems. This is an additional factor influencing the development of the cryptocurrency casino market.

To gain gamblers from traditional services, with the only difference to operate with cryptocurrencies, is not an easy task. Therefore, all bitcoin casinos are focused on the constant improvement of the quality of services and a client-oriented approach. Success in this sphere will belong to those services that prioritise customer comfort.

Cryptocurrency volatility. 

A key feature of bitcoin critics is its high volatility. If the price of bitcoin rises, this is a nice bonus for players. Just imagine that several bitcoins on your account will cost ten times more after a while.

Bitcoin without borders. 

Just imagine a situation that you live in a country where gambling is prohibited both in real life and on the Internet. Serious online casinos won’t let you play for real money. Yes, you can use the IP-address of another country, but when you deposit from your bank card or verify in the service, your attempt to bypass the ban will be fixed. In the case of a bitcoin casino, such problems don’t exist, and even if you have to use a different IP-address, bitcoins won’t tell anyone who you are and where you are from.

High technological efficiency.

Choosing a bitcoin casino instead of traditional gambling platforms, you contribute to new technology and its development.

How cryptocurrency influenced the gambling industry? 

The increasing interest in cryptocurrency is strengthening online casinos’ independence. For several gambling directions, cryptocurrency becomes a turning point: it reduces dependence on the requirements of payment systems. Besides, when cryptocurrency competition among game developers has decreased: the leading game providers get their main profit from regulated platforms (such as NetEnt) and ignore this segment in the digital money market.

As the number of cryptocurrency users grows, the number of active players increases accordingly. Statistically, 10% of the population is addicted to gambling, so the more cryptocurrency penetrates the gambling industry, the more is the number of active players in the casino. But there is some inverse regularity. In countries where casinos have law regulation, for example, in the UK, the artificial limits for players on bets and deposits are set up. As a result, gamblers deny «classic gambling» and admit only casinos with cryptocurrency technology. 

The use of cryptocurrencies in gambling become more and more popular: reliable monetary systems fit for the gambling industry in a better way. But it’s worth noticing that everything has both pros and cons. If the client deposits funds in cryptocurrency, he has no opportunity to make a chargeback. Has the industry become more secure than before? On the one hand — yes.

Chargeback protection is a significant advantage, but, on the other hand, the gambler has to wait more time to be able to make a deposit. If we choose not to wait for account confirmations from the network, then we may not receive funds from the player. However, a player accustomed to fast deposits doesn’t want to wait. Suppose a gambling platform that accepts cryptocurrency displays it instantly on the client’s account without waiting for confirmation. In that case, it risks not to receive it if the transaction will be canceled for any reason.

Moreover, if a gambler wins fast and withdraws money to another cryptocurrency wallet, the casino will pay him out of his pocket. And if the player loses all his deposit, the casino will still have to pay a percentage of the commissions to game providers, software providers, and affiliates. As can be seen from the information above, the online casino bears the expenses in any case of this situation. The good news is that such situations happen extremely rarely.
But as we can see, some risks replace others, and they must also be taken into account.

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